Amazon FBA - Complete Guide

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A wise entrepreneur won’t wait for a miracle or believe in magic pills for business. The only way to succeed is by working hard and trying new paths for your brand. And sometimes, you have to make decisions that would be effective in the long run.

Promoting goods worldwide is clever, but at the same time risky choice, as it’s necessary to consider many things before you start. For example, you will have to find a place to store all the boxes with products and think of delivery. If you don’t have a warehouse or partners who have an opportunity to share responsibilities with you, it’s better to look for alternatives. Amazon FBA program can help you solve many problems connected with selling goods online, increasing income, and boosting business.

The platform offers many opportunities to both starters and experienced entrepreneurs. Read on to find out more about FBA and figure out whether this program is what you need currently. We also collected the main benefits and disadvantages, so that you could understand what to expect.

What is Amazon FBA?

Selling goods online gives vast opportunities for business growth to entrepreneurs. And when it comes to a variety of platforms where you can promote your brand, it’s no doubt that Amazon is one of the best places. As it’s the largest online store in the world, the target audience of your goods may count thousands of customers. Just imagine – around 300 million people buy things there. It means that this marketplace is a spot where you must be present, as shoppers visit it first in case they’re looking for something. Besides, the company appreciates both sellers and customers, so everybody will find advantages.

Amazon FBA is designed to help entrepreneurs improve different business processes. For example, this program includes storing, packing, and shipping – you pay a fee, and the company’s specialists do everything for you. Moreover, it’s easy to check the sum you’ll have to cover by using FBA Calculator .

How does Amazon FBA work? After you create a Seller’s account on their website, you can become a member of this program. If you choose it, there won’t be any need to worry about all these storing and shipping matters again. Amazon FBA includes these services. That’s why you can be sure that professionals take care of everything while you’re working on a strategy that helps you build an empire. Here are the main options of the program:

  • Storing. You send goods to one of the company’s warehouses where they will be kept;
  • Packing. At a warehouse, employees will prepare a product for delivery;
  • Shipping. Once a customer places an order on the platform, specialists arrange everything and send it;
  • Customer support . Amazon’s experts will answer all the customers’ questions and help choose an appropriate thing;
  • Product Return . A customer can send back an item that doesn’t meet his requirements for some reason.

How to Sell on Amazon FBA?

If you haven’t ever heard about the Amazon FBA business, you have a fantastic chance to find all the needed information in this article. It’s necessary to figure out whether this program is a wise solution for your brand because of a few aspects worth attention. For example, all the entrepreneurs who have chosen FBA have to pay fulfillment fees, including referral charges, storage, packing, and shipping. If you’re a starter with a limited budget, think about all the pros and cons – it may be a wrong moment to try this scheme. But in case you see that the program is what you need, then it’s time to get all the perks of Amazon FBA. Now, let’s look closer at how to sell things on the terms of this scheme.

1. Create a Seller’s account

Once you decided to promote goods on the platform, you have to create a Seller’s account first of all. Without it, you can’t join the FBA program. After the registration, you can apply for membership. In order to avoid surprises and get more important details, check Amazon FBA Fees   .

amazon fba product research

2. List your items

Create a catalog of products you want to perform online. If you don’t want to do it manually, you can download a list with the help of a special tool. After you add the items, you’ll see that selling on Amazon FBA is a great chance to attract a larger audience. All the things get a Prime logo that means free two-day shipping for customers and other benefits. And people prefer receiving orders earlier than later.

3. Send products to Amazon’s warehouse

selling on amazon fba

Entrepreneurs are busy people – they don’t have time to look for a place to keep all the goods. Amazon allows you to get rid of these problems and relax. They have around 100 warehouses in the USA, so you can be sure that the company’s specialists will find where to store products.

4. Amazon takes care of your goods

The company’s employees safely sort each item and add it to their register. They do their best to prevent damaging and breaking things. But in case something happens, Amazon returns the full retail price to a seller.

5. A customer buys things

Once a customer chooses your product and adds it to a cart, the company fulfills all the financial processes for you. They have an automated system – you don’t have to care about the transaction. 

6. They ship your item

As an Amazon FBA Seller, you don’t have to worry about all the preparations and shipment. The employees or robots at the warehouse where your items are stored arrange the delivery. They carefully pack each product and send it to a receiver.

7. Customer service

amazon fba product research

Amazon controls the purchasing path of a customer. He or she receives an item, and the company’s specialists make sure whether everything is fine with shipment and order. Of course, you can answer the customer’s feedback on the website – it’s up to you. But with Amazon FBA, everything is under control.

8. You get the money

You don’t have to count sales by yourself. Amazon does it for entrepreneurs every two weeks. They transfer the money you’ve earned directly to your banking account.

It seems incredibly easy, but you may be curious about your responsibilities. Well, you must think of other aspects of your business. For example, there’s the need to focus on the following details:

  • Products to offer. You will have to conduct research and determine what to sell on Amazon FBA. Of course, you may choose anything you like, but consider the fees you’ll have to pay. Besides, you should take into account such details as competition and demand – so it’s better to explore the niche before starting promoting goods;
  • Watch the inventory stock. It’s necessary to check how many products there are at the warehouse, as customers wouldn’t like to wait for ages for their things. It’s possible that Amazon won’t inform you when your items are running out of stock, so it’s better to be prepared and refill the inventory in advance;
  • Advertise your brand. There’s no income without promotion, so you will have to do your best to make your goods popular. First of all, you will need to make them visible in Amazon’s listings. Secondly, it’s necessary to find other channels for advertising.

Amazon FBA may become the most practical decision for your business. You won’t have to worry about storing, packing, and delivering. While many entrepreneurs still prefer controlling everything by themselves, you can rely on Amazon and let it do the job for you. Besides, the chances to succeed with the program are higher in case you choose the right products to perform.

How to Find Products to Sell on Amazon FBA?

Selecting the best thing to sell on the platform is half the success. But how to make the right choice? If you’re a risky person, you can try your luck. But business doesn’t work this way. Research and hard work are the only methods to reach for success. Follow this guide to find the best products to sell on Amazon FBA:

  • Explore the competition in the market. It may be attractive to sell a product that hasn’t been offered on the platform. But it’s better to think twice before doing it. First of all, the chances are that somebody tried this way and it didn’t bring any profit. Secondly, there’s no guarantee that people will search for this item. That’s why you have to conduct research and select the category with a few competitors. Make sure there are no big brands, as it will be harder to attract customers;
  • Select a product that costs less than $100 . Take into account that you will have to pay the fulfillment fee, so it’s better to offer something at a lower price. Besides, with cheap products, you get an opportunity to attract buyers who purchase things impulsively. They don’t waste time on reviews and recommendations. These customers just look at an item and think that it’s what they need right now or something they always wanted to buy;
  • Check the best selling products. You can offer a popular thing and try to compete with other brands in the niche;
  • Find a keyword with a high search volume. The best items to sell on Amazon FBA are often searched but don’t have dominant brands. It’s an ideal choice to start promoting goods on the platform that attract customers but aren’t performed by corporations yet.

There are many ways to find an appropriate item to promote online there. And the best thing about it is an opportunity to use different helping tools . Here are the most popular software:

IO Scout

The tool is created to help entrepreneurs get a better experience on Amazon and boost their businesses. It upgrades the research processes in many senses, as you can successfully choose an item that will bring high income. A user gets access to a product database with dozens of filters. It doesn’t take much time to find items according to such details as revenue, cost, testimonials, stock, and many more.

IO Scout allows tracking an incredible number of items . It means that if you haven’t decided which thing to offer, you can check the best seller’s ranks or niches that may be interesting to you. Set bookmarks to get the hottest information on the chosen items – the tool updates it every hour. It eases Amazon FBA product research and saves time, while many entrepreneurs prefer doing everything by themselves.

amazon fba business

With this instrument, there’s no need to analyze the niche solely. Keep track of all the changes in trends or product history. The tool generates statistics on all the transformations in the category. A user can receive all the necessary insights.

how to start amazon fba

Like many other tools of this sort, the software has a Chrome Extension . It essentially saves time because you can use it directly on the website. You don’t have to leave the platform or download the necessary information to the application.

Seller Labs

Seller Labs has different tools for helping entrepreneurs maintain their business processes on Amazon . A user can solve issues connected with his items by researching reviews, analyzing the keywords in the niche, optimizing ad, and so on. Let’s look closer at each feature:

Feedback Genius has many automated features that allow you to get feedback from customers. For example, you can set appropriate adjustments, and the tool will send emails to people who buy your products. Research the reviews and fix the issues if needed or create the notifications connected with the customers’ orders.

best products to sell on amazon fba

With Ignite , an entrepreneur can automate the advertising and figure out how to increase income. It synchronizes product data, statistics, ads, keywords, and customer search details. The software also provides algorithms that help come up with better business decisions.

Scope is a feature that lets users find high-traffic keywords, improve product optimization, and make a better performance on Amazon. It also provides information on price, fee, and sales estimation. The tool helps analyze the competitor’s product success story with different keywords.

amazon fba recipe for success

Quantify provides the entire financial picture to a seller. It displays your profit, margins, forecasts, and many more. The software also informs a user when an item is running out of stock.

Jungle Scout

The software has a few helpful features that essentially ease the entrepreneur’s path on Amazon. For example, with the Product Database , starting an Amazon FBA business turns into a better process. Jungle Scout generates a list of approximately 70 million items represented on the platform. Find out the potential of products by using filters like price, revenue, and sales rank. You get a chance to narrow the variants of goods you can promote online. Besides, the tool helps count the FBA fees, so that you will be prepared for expenses you have to cover in the Future.

amazon fba product research

Another feature that helps entrepreneurs figure out what to promote on the platform is Product Tracker . Explore the selling rank of an item, price, revenue, and many more. The information is updated every day. The tool also displays the statistics containing pricing, margins, and sales data. Analyze it to build a strong business strategy.

Supplier Database is a list of reliable manufacturers that provide products of the highest quality. Here, you’ll find companies that create items you’re interested in, compare them, organize samples, and many more. Search by preferred details like names of brands or product types.

best items to sell on amazon fba

The success of your item on Amazon depends on a list of keywords. The software allows conducting comprehensive research and receiving the necessary data quickly. Keyword Scout displays competing products, customers’ search phrases, rankings, and many more.

Benefits of Using Amazon FBA

Now, when you know everything about the program, it’s time to think about other important things. Will Amazon FBA recipe for success work in your case? Well, this scheme is worth attention, as it opens broad horizons to an entrepreneur. Besides, it’s a perfect opportunity to concentrate on building an effective strategy and expand a business. Let’s look at the major benefits of this program:

  • High-quality logistics service. If you’ve ever tried to fulfill all the processes by yourself, you know how hard and time-taking it is. Besides, sometimes you can’t arrange all the shipping matters perfectly. In this case, FBA is a practical solution because you don’t have to fill your garage or office with boxes. You only have to send products to one of Amazon’s warehouses. There, professional specialists will arrange the best conditions for your goods. They will store , pack, and ship items;
  • Lower shipping prices. Amazon collaborates with delivery services and gets discounts that are hard to achieve if you’re an average entrepreneur. You have to pay a full price for the shipment, and that’s why FBA is a cost-effective solution;
  • Prime logo. The items of the members of this program are marked. Prime logo informs a customer that shipping is free . Besides, privileged buyers get even more perks. They are eligible for free two-day shipment. No doubt that Amazon FBA is a chance to increase sells for a brand;
  • Returns processing. You might think that your product is the best one, but let’s admit it – disappointment happens. It’s hard to deal with unsatisfied customers and arrange the return solely. With Amazon FBA, you don’t have to do it. The specialists communicate with buyers, arrange reverse logistics, and many more. You will have to cover a fee, but it’s worth it;
  • Unlimited space for storing items. FBA selling is a convenient solution because Amazon will never tell you they don’t have a warehouse where your goods can be kept. And you don’t have to pay anyone for space where you could place things. Besides, entrepreneurs who quickly sell products get access to unlimited storing ;
  • Excellent customer support. The company’s service is brought to the highest standards. Customers can get answers to their questions via online chat, email, or phone 24/7 ;
  • Quick shipment. Amazon has fulfillment centers all over the world. Once a customer purchases a product online, they send it from a place that is closer to him. A buyer waits for an item for no longer than a few days;
  • Other channels are welcomed. You can promote goods in some other places, but let Amazon fulfill all the processes.

Disadvantages of Using Amazon FBA

  • In some cases, it’s not enough to know how to start Amazon FBA. You need to analyze the information and check the budget of your brand before joining the program. Learn the disadvantages that may stand in your way to success: It’s not for free. You will have to cover all the fulfillment fees connected with storing, packing, shipping, and other features. It’s better to check how much your item costs and figure out whether it’s a profitable choice for your business;
  • Long-term Amazon FBA fees. Of course, you can prepare and send hundreds of items to the warehouse. But what if nobody buys your products? The storage fee will become higher and higher, and you must cover it anyway;
  • More returns. Customers understand that it’s easier to send an FBA product back, and that’s why they often buy things to test them;
  • Strict conditions. Amazon provides obligatory rules to all FBA members, and you will have to follow them. For example, it may be hard to meet the database requirements or label items properly.

Final Thoughts

Thanks to this Amazon FBA review, you have the information about the main features of this program. There’s no doubt that the platform is the right solution both for big and small businesses. Entrepreneurs have the chance to show their products to millions of customers across the world and essentially boost sells . The program may become an important part of your strategy, but there are still two ways in this exciting journey – you succeed or fail to reach a higher income. That’s why it’s necessary to consider all the pros and cons before choosing Amazon FBA.