Amazon has created one of the most advanced fulfillment networks in the world, and you can start selling your product on Amazon. FBA stands for Fulfillment by Amazon , If you have ever received package from Amazon that is labeled "Fulfilled By Amazon", it means you ordered from a FBA business selling on Amazon. You can benefit from storing your inventory in Amazon's fulfillment center, they will pick, pack, ship and provide customer service for the orders. The best of all, you can scale your business and reach more customers under the Amazon web hosting without having your own inventories or spend time with customer service.

How Does Amazon FBA Work?

Traditionally, you have to create your website and a warehouse to store your products to sell. Amazon has completely changed the landscape of online shopping and e-commerce by introducing Amazon FBA. In layman's term, Amazon is selling your product for you, and you don't have to touch any product or to deal with the hassle of customer service. Amazon called it: "Make More Money And Grow Your Business Fast And Save Time And Delight Your Customers By Amazon."

Here is how it works. You simply ship your inventory to Amazon's fulfillment centers around the world. When you run your business through the FBA, your products will be listed on Amazon, and they are eligible for Amazon Prime and FREE shipping, so you can maximize customer satisfaction and scale your business. When a customer purchases your product, Amazon will pack, ship and manage customer service for you 24/7. What does this mean for you? You can focus on growing your business and let Amazon reach more potential customers for you.

The Future Is Bright!

Base on the growth of Amazon, the simple answer is to start as soon as possible! Sellers regret NOT starting Amazon FBA sooner On average, revenue grows by 14% per month By 18 months, 50% of sellers report $10K in monthly revenue About 66% monthly profit of their original investment

How Can You Start Amazon FBA?

The start is always the hard part because you have no idea what you are doing. In this article, I will break down exactly all the major steps you MUST take to do it right. I rather want you to follow the right steps to avoid mistake, then making those mistake that could waste your time and money. You can always make more money, but you can't make up the time you lost. Here is the basic logistics of starting Amazon FBA. Product Research > Bulk Order > Shipping > Amazon Inventories > Product Listing > Sales

The Cost Break Down & MUST Have Items To Launch

In this article, let's focus on breaking down how much you need to start Amazon FBA, and all the must-have items you need to start. When figuring out how much it will cost you to start, here are the three categories: MUST have Nice to have Luxury item I strongly recommend you get the important first and do not waste money on things that you don't need. If you have been running an online business whether it is affiliate marketing or website building, there are a lot of "nice to have" and "luxury item" that doesn't produce any result for you, so let's only get the "MUST have" items.

"MUST" Have Items ~ $1600 Product Research Tool - $69/month

Software that provide data on monthly searches and product niche to help you determine what to sell. We recommend Jungle Scout $69/month, and you can cancel it after your found your winning product. Product Sample - $100 Quality is super important; you want to obtain a sample product and examine its quality. Alibaba is great for this. Amazon Professional Sellers Account $39/month This is a must-have so that you can have your products listed on Amazon's platform. Product Inventory - $1000 After you have chosen your supplier, it's time to put down a bulk order. Suppliers like Alibaba will have a minimum order quantity, so 300 units are the recommended amount. In this example, we will assume the product cost $2 per unit, totaling $600. A UPC Code - $5 This is the proprietary Amazon barcode you need so Amazon can print the package of your product. Brand Logo - $5 - 20 You must use a good looking logo for your Amazon storefront; nothing is worse than someone visiting your storefront with a blank logo thumbnail, people will just leave. You can go to Fiverr.com to get that done, or if you're graphically talented, you can do it yourself. Shipping - $400 Depend on the volume of products and weight, please have $400 shipping. Product Photo - $5 You can do this on your own for free as long as you make it look clean and professional. $40 for a professional photographer, which is overkill if you already know how to take good product photo.

"Nice" To Have Items ~ $600

The nice to have items are optional, and there are their to help you launch your business faster with more success Sponsored Ads Amazon PPC ads - up to $200 This will help you to run profitable paid campaign with Amazon's platform, so you can reach more customers. Registered Trademark - $350 If you're running private label brand, then you need to have a registered trademark in order to be in the brand registry. This means you need to apply for a trademark and wait for it to be approved.

Luxury Items ~ $500

Those are the things you do not need, and I want to bring those things to your attention, so you don't waste your time and get off course. Expensive Logo Design Work & Product Photo It's difficult to put a price on good design; the sky is the limit. Just like affiliate marketers and website builders who spend weeks optimizing the look of their websites, they end up losing at the end, because it doesn't correlate with sales or conversion. As long as you have a good quality logo and product photo, then you're good. No need to spend $50-200 for it. Bottom line: Don't do it!

Can You Reduce These Costs More?

The area where you can definitely save is to get rid of "Nice to Have" and "Luxury Items" when you are new. The second method is to purchase less inventory in the beginning. Find a low cost-per-item product To reduce startup cost, the only thing you can control is the cost of the product. Instead of ordering 500 units of a $10 per unit product for $5000, try ordering 500 units of a popular product that cost $2 per unit for $1000. Or you can just order fewer units. If your goal is to stay under $2000 as a beginner, then you have to do the math to balance the cost of product and units proportionally. Do It Yourself As Much As You Can & Know When To Delegate As we covered earlier, you can always make more money, but you won't make up the time that you lost. This is where you have to decide whether doing things yourself is worth the time or not. If you are strapped for time and resources and unable to do tasks like product research, design, pictures, or marketing yourself, then it will cost you more to get started. Outsourcing is important; any successful entrepreneur understands the value of delegating tasks for maximum results. The point of Amazon FBA is to lift the burdens of inventories, packing and shipping off your shoulder, so you can focus on scaling your business. Therefore if there is something you can do fairly easily, then do it yourself; otherwise, outsource it to other people. LLC ( Limited Liability Company) - If you are new to this, you can just SKIP this part until you see massive success. We're not providing you with any legal advice. However, a lot of successful high revenue earners eventually created their LLC. It's a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. In layman's term, this will give you lower tax rate and protect your business. Congratulations, this where the big difference is between an employee and business owner. To learn more about LLC click here. Your Own Website Is NOT Needed If you're creating your own website for your product, then it completely defeats the purpose of Amazon FBA. Your products will be listed on Amazon. All the traffic will draw to Amazon listing. A standalone site maybe helpful in the future as you become more successful brand, but if you're starting out on Amazon FBA, then please do not build your own website.

Final Thoughts

Amazon FBA lifts the biggest burden off sellers' shoulder by offering warehouse inventory, packing, shipping and customer service, so they can focus on product research and scaling their business without getting involved in the logistics. It is a revolutionary system that will exponentially grow the E-Commerce market in the next 30 years. There is no better time than now to start your business selling products online with all the amazing tools at your disposal. As mentioned above, you can always make more money, but you're NOT going to get back the time you lost making mistakes on your own. Start now on Amazon FBA as little as $1000. ​

