How to Start an Amazon FBA Business
Amazon is the biggest online retailer in the USA, UK, and most of Europe. It is a household name. You might not be aware that Amazon FBA is a service that allows third-party sellers to sell products.
It means that Amazon takes care of all stock belonging to the seller. The customer orders directly to Amazon’s FBA warehouse, bypassing the seller. Amazon picks up the order and delivers it directly to the customer.
Amazon FBA handles the majority of customer service. FBA handle all customer returns, and they only forward the most important queries to the seller.
The customer will not notice a difference in purchasing directly from Amazon or someone selling their products through Amazon FBA.
They receive the same delivery options, returns policy, and customer service team. We will be discussing the two main types of Amazon FBA business in this article.
Create a product entirely from scratch. It should be professionally designed and manufactured. Next, work hard to convince people they want it.
This is how I approach table tennis bat cases. This is a tedious task and there’s the real danger of people not wanting what you’ve created.
Re-invent/improve an existing product. Find a product that isn’t selling well and make a better version. Amazon sells hundreds of rebranded white-label items.
You can even contact the factory that made the original product to have them do your manufacturing.
How to source your products
Alibaba is an online Chinese wholesale market that allows distributors and factories from around the globe to display their products. These companies are willing to work with you in creating and manufacturing your product.
It has been very simple to start an Amazon FBA business since the arrival of Alibaba. It’s that simple. Amazon has been flooded with white-labeled Amazon products, which are directly from Alibaba and have a large price markup. They don’t all sell well but many do.
Suggested: To know more about How to Buy Products From Alibaba and Sell on Amazon check this detailed guide.
Stock from Alibaba to Amazon FBA
How you move your stock from the factory to FBA warehouses is the final piece in setting up Amazon FBA. It may seem simple on the surface.
Each country has its own customs process and Amazon has very specific requirements regarding how your items should be delivered. Many companies can handle all of the details for you. They are called freight forwarders or customs brokers.
Amazon FBA and Amazon
Once your shipment has arrived in the destination country, you will need to ship it to Amazon warehouses. First, create an Amazon account.
Signing up as an Amazon seller ‘Individual” in most countries is free and open to anyone. Amazon accounts come in two varieties. Both for professionals and individuals.
- You pay an additional fee for each item sold, it is free.
- Monthly fees for professionals
Both can be used with Amazon FBA. First you sign up for an individual account, and then upgrade once your sales reach the threshold.
