Amazon FBA: What is Amazon FBA and How Does Amazon FBA Work

Amazon FBA: What is Amazon FBA and How Does Amazon FBA Work

If this is the first time you’ve discovered Amazon FBA, don’t worry. We want to make sure you understand how it all works. This guide will cover the basics of How to Sell on Amazon FBA.

Amazon FBA literally means Amazon Fulfilled-By-Amazon. In the Amazon FBA program, Amazon does all the hard work for you.

Amazon FBA: What is Amazon FBA and How Does Amazon FBA Work
Amazon FBA: What is Amazon FBA and How Does Amazon FBA Work

Here’s how it works:

  1. First, you send Amazon your products and they store it in one or more of their million acre fulfillment centers. The fulfillment centers are like massive warehouses run by robots and hardworking Amazon employees.
  2. Then, your products are inventoried and sorted. They are taken good care of. And if on the off-chance something is damaged in one of Amazon’s warehouses, Amazon will actually reimburse you the full retail price for the damaged good!
  3. When a customer places an order on Amazon for your product, Amazon handles the transaction for you. The entire process is automated.
  4. Next, your product is picked from its place on the shelves, packed into a box, and shipped to the customer on your behalf.
  5. After your product arrives to the customer, Amazon follows up with the customer to make sure everything is okay with the order. And, if any need to be made, Amazon automatically takes care of that, too.

If Amazon does all the work, what do I do?

Now you’re probably thinking, “Okay, that all sounds great! But what do I actually do?”

As an Amazon FBA seller you will have to:

  1. Pick the products. Amazon handles all the back end work, but you need to decide what to actually sell. I’ll tell you about a few different methods of selling products on Amazon in a moment.
  2. Keep inventory in stock. Amazon will let you know when inventory is running low. But it’s your job to make sure that the things you sell stay stocked up.
  3. Promote and advertise. Amazon is a massive catalog of millions of products. Therefore, you’ll need to do a little work to make sure people find your products. But don’t worry–it’s pretty easy!

What does it cost to sell on Amazon FBA?

Selling on Amazon FBA is very reasonable to get started with. In fact, if you’re selling products that you already own (like unwanted items around the house), you can virtually do it for free!

Individual and professional seller accounts

There are two types of Amazon FBA seller accounts: individual and professional. Individual seller accounts are free, but have higher sales fees. And professional accounts have a monthly subscription fee of $39.95, but lower fees. We recommend you get a professional account if you plan on selling more than 40 items per month. But if you want to start slow with only a few items, then individual may be better for you.

Amazon fees

Like many online marketplaces, Amazon takes out fees for their services, usually after a sale has been made. Here’s the quick version of those fees:

  • Amazon takes a 15% referral fee on all sales for most categories.
  • If you use Amazon’s FBA service, they take out fees to cover the shipping and handling costs for your products. However, these tend to be less than what it would cost to ship it yourself.
  • Some categories, like books and DVDs, have an additional flat fee.
  • If you sell on an individual seller plan (no subscription fee), Amazon charges an additional $1.00 flat fee. Hence why we recommend going professional if you’re going to sell 40 or more products per month.
  • Keeping your inventory at Amazon fulfillment centers too long can result in long term storage fees.

If this sounds like a lot, don’t worry! The fees overall are pretty low and actually end up costing you a lot less were you to do all the work yourself.

Inventory costs

Depending on the type products you choose to sell on Amazon, your inventory costs will vary. We recommend the private label method which does come with a moderate investment upfront, but you might choose to start with just a few things around the house to get a feel for how to sell on Amazon FBA. It’s totally up to you!

Which is better to sell on: Amazon or Ebay?

This is a question that’s as old as ecommerce itself. And ultimately, it depends on you and what you want out of your business. Some people swear by Ebay. While others, like myself, think Amazon is the best place to start an online business. I think the best way to sum up the difference between the two marketplaces is like this:

  • Ebay is like the world’s biggest flea market. You set up your “stand”, offer your products, handle transactions, shipping, and everything else. It’s 100% your responsibility. Therefore, you may end up putting more work into it for less profits.
  • Amazon FBA is like owning a shelf at a very large department store. Your biggest job is to make sure that your shelf stays stocked and that it’s visible. Unlike ebay, however, the department store handles the transactions, shipping, and all the tough work. In my experience that equals less work and more profits.

What to sell on Amazon FBA

Another thing that’s amazing about this business model is that there’s no one way how to sell on Amazon FBA. Here’s a few of the most popular methods:

  1. Arbitrage Find low-priced items in retail stores or other online marketplaces to resell on Amazon at a higher value.
  2. Wholesale Buy bulk discount branded goods to resell on Amazon at a higher value.
  3. Used Book Sales Purchase used books at book sales, yard sales, or other places to resell on Amazon at a higher value.
  4. Private Label* Research and manufacture your own branded products to sell on Amazon FBA where you control every aspect of the product.
    *This is our preferred method how to sell on Amazon FBA.
What is private label?

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. In other words, you take a product that already exists and manufacture it with your own brand and logo.

Most successful Amazon FBA sellers are private label sellers.

Why sell private label versus the other methods?

Private label offers a ton of advantages over the other methods. Here’s a few:

  1. Less work sourcing. You only have to source a single product in large quantities versus many small products like you would with arbitrage or used book sales.
  2. Price control. The Amazon listing for your product is under your control. Therefore, you don’t have to worry about underpricing your competition like you would with wholesale or arbitrage.
  3. Higher profits. In my experience, private label is the most profitable and predictable method of how to sell on Amazon FBA.
How much money can I make selling private label?

Of course, everyone’s success varies with private label. However, if you follow the basic steps myself and Lenny outline to creating a private label product, this is roughly what you can expect to earn:

Image

How much work does the private label method take?

Ever hear of the 4-hour Work Week by Tim Ferriss? It’s the idea that you can design the lifestyle that you want so long as you can put your income on autopilot.

And that’s pretty much what you’re learning when you learn how to sell on Amazon FBA. Once your product is created and live on Amazon, you don’t have to do anything else but check on your advertising and make sure your inventory is stocked.

Just 4-hours a week and you can earn an extra $3,000 per month!

How do I create my first private label product?

It can be done in just five easy steps:

Image


  1. Research high-demand/low-competition products.
  2. Source those products through Alibaba, a website that puts you in touch with 1000’s of manufacturers who are eager to do business with you.
  3. Create a brand new listing on Amazon. It’s so simple, you can do it in less than 40 minutes.
  4. Ship the products to an Amazon warehouse so it can be part of the Amazon FBA program and you won’t have to do all the back-breaking work.
  5. Launch and advertise your product using Amazon’s own advertising system which is as simple as clicking a few buttons.

Then, all you have to do after that is sit back and watch the profits roll in!

Get started now with Amazon FBA. Here’s a link:
Amazon FBA

amazon seller
amazon fba
amazon business
amazon seller account
how to sell on amazon
amazonseller
fulfill
fulfillment
selling on amazon
sell on amazon
fba
amazon fulfillment center
amazon fba calculator
amazon business account
amazon services
fba revenue calculator
amazon fulfillment
amazon warehouse near me
what is amazon fba
fba amazon
amazon benefits
how much is amazon worth
amazon rental return
seller amazon
fulfillment by amazon
amazon fba fees
fulfilment
fulfillment center
hub.amazon.work
amazon fee calculator
create amazon account
amazon fba business
amazon warehouse locations
amazon sell
amazon fulfillment centers
amazon advantage
amazon selling
amazon worth
amazon amazon
amazon seller fees
work for amazon
amazon fba course
fulfilled by amazon
how to sell
amazon for business
amazon selling fees
fullfillment
define fulfill
amazon item not delivered
how to sell things on amazon
fba meaning
how to start selling on amazon
fba toolkit
amazon business account benefits
business reviews
amazon fulfillment center locations
prime benefits
how does amazon fba work
what is fba
fulfill definition
how to sell online
sell to amazon
amazon fulfillment center near me
how to become an amazon seller
how much does it cost to sell on amazon
amazon seller customer service
how to sell stuff on amazon
fulfillment definition
amazon automation
account warehouse
it works customer service
how to sell on amazon for beginners
amazon business model
selling on amazon fees
sell on amazon for free
fba reddit
fulfillment services
fba calculator amazon
fulfilled definition
how do i sell on amazon
αμαζον
fba fees
fullfilment
sell online for free
fullfilled
work using amazon
amazon returns center
become an amazon seller
amazon definition
amazon seller marketplace
business amazon
how to sell something on amazon
work with amazon
how to sell things online
define fulfillment
create an amazon account
sell things online
amazon distribution centers
how to sell items on amazon
hub amazon work
amazon fees
amazon distribution center near me
how to sell on amazon for free
how do you sell on amazon
amazon reseller
how to make money selling on amazon
amazon merchant account
amazon fulfillment services
seller.amazon
service meaning
what to sell online
if playback doesn’t begin shortly
is amazon profitable
amazon seller central us
amazon return shipping cost
how to sell products on amazon
how to start an amazon store
how to become a carrier for amazon
fufillment
amazon return rental
how to become a seller on amazon
how to sell on amazon prime
amazon storage fees
fulfilment by amazon
work.amazon.hub
amazon seller account login
how to sell in amazon
amazon marketplace charges
amazon sell back
amazon individual seller account sign up
amazon sale today
making money on amazon
amazonfba
amazon meaning
amazon seller services
best things to sell on amazon
how does amazon work
is amazon business worth it
amazon calculator fba
sell amazon
create amazon seller account
define fulfilling
how to start an amazon business
what does fulfilled by amazon mean
what can i sell on amazon
selling products on amazon
sell stuff on amazon
amazon fba seller
fulfillment warehouse
new amazon distribution centers
fulfilment center
amazon fbm
how amazon works
fulfillment by amazon fees
www.amazon.work.hub
fulfilled meaning
amazon shipping rates
fb sign in
how to sell a product
how to sell on amazon fba
amazon review program
cost to sell on amazon
amazon service
top selling items on amazon 2018
amazon online returns center
what is amazon business
fba calculator uk
how to be a seller on amazon
amazon customer returns box
amazon buisness
free selling sites
if playback doesn’t begin shortly try restarting your device
cheapest item on amazon
what does fba stand for
when does amazon charge
amazon fulfilment center
how to hide orders on amazon app
amazon marketplace login
how to sell products online
amazon.com seller
how to sell items online
amazon smi
free amazon products
amazon training program
who does amazon ship with
fulfillment by amazon revenue calculator
sell items on amazon
reddit fba
amzon seller
amazon fulfillment calculator
amazon warehouse reddit
set up amazon account
when does amazon charge you
fulfillment centers
how to make money on amazon fba
what is fba amazon
define ship
where to sell online
how to set up an amazon store
how much does amazon charge to sell
amazon rental returns
what is an amazon business account
jungle guide
selling items on amazon
amazon individual seller fees
amazo n.at
selling through amazon
amazon fba program
amazon seler
amazon fees calculator
does amazon ship to canada
fba calculator for amazon
fullfillment by amazon
sell it here
sell things on amazon
how to open an amazon store
seller amazon account
amazon business opportunity
amazon seller sign in
how to return amazon rental
does it works work
amazon warehouse reviews
selling things on amazon
amazon/your orders
amazon fullfillment center
fba seller
amazon fda
selling to amazon
best products to sell on amazon fba
amazon fee
work online for amazon
starting an amazon business
start selling on amazon
services.amazon
amazon small business
amazon fba storage fees
define fulfilled
define amazon
sell products on amazon
amazon shipping costs
what is an fba
how to create an amazon store
what is sells
amazon returns customer service
amazon businesses
my ftb account
what to sell on amazon fba
amazon digital services charge
amazonfullfillment
amazon shipping prices
amazon distribution
how to sell a product online for free
how to find out what something is worth for free
amazon fba account
amazon seller registration
selling on amazon reviews
how amazon started
what is amazon fulfilled
open up amazon
amazon.work.hub
advantages of amazon prime
make amazon account
fees for the return and disposal of fba inventory
big sky fulfillment
most sold items on amazon
selling stuff on amazon
become amazon seller
amazon fba sign up
open amazon seller account
fulfil definition
fulfilment or fulfillment
amazon benefits package
amazon e commerce
amazon fullfilment
amazon sellers centre
amazon business accounts
working at amazon reviews
what is required to sell on amazon
selling on amazon fba
top 100 items on amazon
amazon seller fee
amazon.pl
amazon manage channels
is selling on amazon worth it
amazon’s business model
can you sell on amazon
sale on amazon
why do you want to work for amazon
sell with amazon
amazon resell
what does amazon do
how to make money on amazon without selling
where is amazon
what is a fulfillment center
amazon seller’s account
amazon fba training
how to sell to amazon
best amazon fba course
create amazon store
bsr amazon
amazon live tracking
how long does amazon take to ship
amazon fba meaning
amazon account create
amazon warehouse warranty
fba business
what happens if amazon doesn t deliver on time
how much is amazon shipping
amazon commission
amazon about
ship works
free amazon seller account
what shipping does amazon use
amazon fba business for sale
pack and send
amazon warehouse sale
how to sell an item on amazon
how does amazon ship
amazon inventory
how can i sell on amazon
how long does it take for amazon to ship
how does selling on amazon work
selling in amazon
create new amazon account
what is bsr amazon
how many customers does amazon have
fba storage fees
how to sell on amazon as an individual
how to be an amazon seller
how to start a
fba shipping
can i sell on amazon
amazone seller
amazon fb
make money selling on amazon
how to sell things
become a seller on amazon
amazon logistics review
what can i sell online
pro prep and fulfillment
how to sell online for free
items sold by amazon
fulfillment service
it works distributor customer service
how to sell on ebay for beginners step by step
how many warehouses does amazon have
amazon selling fee
step to open a business
amazon manage orders
how to close amazon seller account
fba c
mcf meaning
fba fulfillment fees
amazon business for sale
setting up an amazon store
fba amazon fees
open an amazon storefront
open amazon account
amazon seller page
amazon business seller program
how to advertise on amazon
amazon account for sale
amzon.in
what if amazon doesn t deliver on time
what is fulfillment
what is amazon fba?
can you sell stuff on amazon
how to sale on amazon
amazon seller com
amazon cost
amazon.cs
amazon merchandise
amazon fulfillment fees
amazon fulfilment
manage amazon channels
how long does amazon prime take to ship
benefits amazon
downsides to amazon business account
sellfor free
amazon channels cost
free product for amazon review
amazon seller accounts
what percentage does amazon take
what to sell
what is amazon fba business
sign up meaning
amazon long term storage fees
can anyone sell on amazon
amazon com services
how to sell through amazon
amazon digital service charge
amazon shipping time
free amazon stuff
is amazon fba worth it
amazon reseller program
how much is shipping on amazon
how long does it take amazon to ship
top items sold on amazon
amazon.com number
sell services on amazon
services.amazon.com
amazon webstore
ship listings
amazon business review
starting an amazon store
amazon ecommerce
selling for free
how to merge amazon accounts
my itworks store
amazon warehouse returns
step by step guide
amazon shipping center
how to get an amazon account
fbas
selleramazon
how to sell on amazon successfully
create amazon business account
amazon cost calculator
gated amazon categories
amazon sell as individual
how to set up amazon seller account
amazon mcf
what type of business is amazon
amazon hub help
do i need a business license to sell on amazon
amazon start
how to create an amazon account
amazon check my order
amazon fba vs shopify
what is fulfillment by amazon
most popular products on amazon
fba fee
benefits of amazon business account
amazon oversize dimensions
how to become amazon seller
amazon seller training courses
open an amazon store
ship link
becoming an amazon seller
making amazon account
amazon fullfillment
does it cost money to sell on amazon
amazon hub.com
amaozn seller
cheap items on amazon
shipped and sold by amazon
services amazon
my di
shipping to amazon fba
what to get on amazon
full time fba
amazon fba university
what what are they selling
amazon seller help
amazon return customer service
why does amazon take so long to ship
amazon com rental return
what is fulfilled
amazon individual seller sign up
amazon seller sign up
fulfilled by amazon return policy
where are amazon warehouses
how to start amazon fba
how to sell a product online
up works
how much to sell on amazon
amazon fees for selling
amazon seller cost
amazon.com/billwa
how to start a business on amazon
amazon shipping calculator
amazon.com services inc address
amazon sller
selling thru amazon
return amazon rental
define visor
sell on amazon as an individual
fba tool kit
working at amazon warehouse reviews
fulfillment or fulfilment
amazon shipping rates usa
selling by amazon
shipping works
preparing for shipment amazon
amazon seller acount
sign up amazon
what are the advantages of amazon prime
amazon business opportunities
fufilment
how to create amazon seller account
sign up definition
trade in account amazon
amazon warehouse location
amazon.com orders placed
making money selling on amazon
amazon add item to order
amazon seller shipping
amazon free seller account
sell through amazon
amazon shipping rates for sellers
items 4 online sellers
amazon one day shipping not an option
amazon taking over the world
how to start your own brand
what does amazon sell
how does amazon ship so fast
how much does it cost to ship a book
amazom seller
how to find items sold by amazon
amazon original name
sell as an individual on amazon
ship videos
amaon seller
sell on amazon individual
amazon selelr
selling on amazon tips
fulfillment center near me
where does amazon ship from
amazon full site your orders
boost with fba
most popular items bought online
amazon gated categories list
amazon course
amazon work com
amazon return rate
how to get free things on amazon
how to sell your product on amazon
amazon seller account cost
how to do business with amazon
easy products to sell
what does customer service means to me
furfill
fulfilled by amazon returns
most sold item on amazon
multi channel fulfillment amazon
benefits of working at amazon
amazon seller account sign up
amazon.com services inc seller
how does fba work
fulfillment by amazon calculator
does amazon charge for returns
do you have to pay to sell on amazon
free step
fba stores reviews
fba cost
amazon sell service
where is amazon warehouse
define duh
amazon seller shipping rates
fulfillment center amazon
define selling
how to make money on amazon for free
what sells the most on amazon
fulfillment company
how to return amazon book rental
amazon prime cons
online returns center amazon
what is amazon fulfillment center
make an amazon account
how was amazon started
define fulfil
provide customer service
amazon return fee
fulfill by amazon
sell in amazon
amazon fba shipping requirements
how to start an amazon fba business
what to sell on amazon to make money
setting up amazon account
are amazon prime returns free
it works learning center
junglescount
how to set up amazon store
setup amazon account
how to sell products
ships for sale usa
pros and cons of amazon prime
amazon.seller
amazon facilities
definition of fulfilled
ways to sell online
set up amazon seller account
amazon seller central japan
amazon distribution center mobile al
amazon merchant login
amazon charging for returns
what is an amazon
bsr amazon meaning
amazon.com services
create an amazon store
amazon seller account customer service
selling it works
how to sell a product on amazon
jungle scount
sell up
amazon free money
create account amazon
how much does it cost to sell books on amazon
amazon fufillment
how to return an amazon rental
what does amazon mean
amazon advantage sign in
amazon vive
amazon fullfilment center
amazon.com seller account
amazon selling app
can you sell things on amazon
how.com
make a amazon account
amazon www com
cheap amazon items to get free shipping
how to ship to amazon fba
open amazon store
do you need a business license to sell on amazon
fba amazon calculator
how to make money with amazon fba
free amazon money
new amazon fulfillment center
who ships for amazon
amazon barcode requirements
amazon multi channel fulfillment fees
free shipping for prime members once available
which of the following is the main incentive for a manufacturer to sell a product?
amazon product description html
fba cost calculator
amazon worth 2018
amazon prime shipping changes 2018
how much is standard shipping on amazon
how to list items on amazon
amazon create an account
amazon free products
amazon get it today
amazon fulfillment centers indiana
sellers advantage reviews
leverage amazon prime
finding products to sell on amazon
amazon warehouse sales
what does amazon fba mean
work at amazon fulfillment
fulfillment amazon
amazon business account cost
online return center amazon
how to setup amazon seller account
can i sell stuff on amazon
free online store with products included
benefits of an amazon business account
pros and cons of selling on amazon
most selling items on amazon
how to become a vendor on amazon
service work definition
amazon start your own business
amazon fba recipe for success
amazon selling services
cost of selling on amazon
fees for selling on amazon
fulfills definition
amazon return centers
sell on amazon free
how much does it cost to sell on amazon as an individual
amazon how
best thing to sell online
amazon for sale
sell something on amazon
best seller items on amazon
amazon fba step by step
products sold by amazon
how to set up an amazon account
can i use my us amazon account in the uk
amazon prime advantages
popular products on amazon
amazon customers
fulfillment works
amazon rental refund
amazon fba app
amazonmazon
sell for free
set up new amazon account
how to make rate at amazon
amazon fba business model
how do you sell stuff on amazon
business amazon account
start an amazon business
amazon merchant fulfilled
how to get stuff for free on amazon
fullfilment by amazon
how to sell it works
fba label
amazon fba fee
amazon fulfillment logo
what does fba mean
amazon sellet
how to email seller on amazon
how to create amazon account
amazon fba business plan
items to sell online
amazon warehouse apply
amazonsell
amazon listing fees
amazon programs
amazon sellr
amazon freedom course
how much does amazon take from sellers
how does fulfillment by amazon work
how to sell as an individual on amazon
fba selling
how much money can you make selling on amazon
ship product
learn how to sell
amazon return cost
fba warehouse
reddit selling on amazon
how to change shipping speed on amazon
amazon payments fees
working for amazon reviews
is it worth selling on amazon
how to create a listing on amazon
how much do you have to spend on amazon to get free shipping
amazon fba?
try freestep
selling amazon
amazon fba tools
amazon safe pay
how to tell if amazon reviews are real
working at amazon benefits
amazon store setup
selling online free
how to create a product to sell
amazon key review
which of the following is a drawback of selling private-label merchandise
service business definition
buying and selling on amazon
what is amazon digital charge
itworks products reviews
what does fulfillment by amazon mean
how much does one day shipping cost on amazon
how to make an amazon account
definition of fulfillment
what percent does amazon take
how to start a distribution company
order fulfillment services
seller amazon com
which type of ebusiness model is amazon using?
how to get started selling on amazon
complete free
amazonazon
individual selling on amazon
amazon estimated delivery
amazon long term storage fee
apply at amazon warehouse
services orders
forfilled
pick pack
seller on amazon
how does amazon fulfillment work
amazon seller name
amazon free shipping amount
amazon fulfillment review
how to amazon fba
most searched items on amazon
best amazon fba course 2018
order-update@amazon
amazon create
how to sel
top 100 amazon sellers
how do i sell something on amazon
amazon shipping fee
amazin seller
cheap amazon items
amazon become a seller
every little step video
how its work
amazon shipping issues
setting up an amazon account
setting up amazon seller account
how to list products on amazon
fulfillment define
what happens when amazon doesn’t deliver on time
what is amazon referral fee
amazon business account reddit
sell on amazon prime
amzon fba
amazon warehouse review
when does amazon charge for orders
amazon fba guide
which of the following would be considered a disadvantage of using managed contract services?
how to sell on amazon.com
selling on amazon for beginners
is selling on amazon profitable
business.amazon
how to open amazon seller account
how to become an amazon partnered carrier
fulfilment definition
how to open an amazon storefront
selling on amazon prime
amazon track return
is amazon legit
best things on amazon under 5
amazon selling workshop
amazon subscribe and save faq
amazon order summary
fba fees calculator
amazo seller
sell online free
selling on ebay for dummies pdf
amazon fulfillment center address
products benefits
best itworks products
amazon fulfilment center near me
sell on
when was amazon started
the last amazon course
define seller
how to open amazon store
fulfillment by amazon reddit
itworks store
start an amazon store
selling products online without inventory
fba definition
amazon fulfillment services phone number
which of the following is a benefit of a brand name for a seller?
amazon pro seller
amazonseller account
sell cost
fulfilled by amazon meaning
starting an amazon fba business
amazon seller shipping options
my seller amazon
amazon fulfillment login
amazon seller acct
what can i sell on amazon to make money
shop amazon marketplace
amazon fulfillment cost
amazon review service
how to list a product on amazon
completefree
how much does 2 day shipping cost on amazon
does amazon deliver to canada
most bought item on amazon
shipping product
given half a chance, other people at work will take advantage of you.
is it works legit
how to contact the seller on amazon
sell as individual on amazon
amazon customer service sites
things to get on amazon
change shipping speed amazon
fulfillment com
amazonfulfillment com
is it free to sell on amazon
where are amazon fulfillment centers
how does it works work
sell my stuff on amazon
amazon free items
when did amazon start making money
it works product list
amazon change shipping speed
sell in
sell on amazon fba
the first step for selecting the right social media tool(s) is
amazon marketplace fees
free sell
amazon fba costs
amazon fba shipping
setup amazon seller account
jungle amazon
return rental amazon
is it worth it to sell on amazon
work for amazon online
how to get anything free on amazon
amazon seller usa
what if amazon doesn’t deliver on time
create a amazon account
amazon fulfillment phone number
when did amazon begin
amazon fullfillment services
selling books on amazon fba
are amazon reviews real
how many distribution centers does amazon have
amazon channels pricing
amazon account setup
does amazon change prices based on cookies
amazon professional seller fees
how to use amazon
fulfilment meaning
does amazon sell used cars
amazon free business account
is amazon fulfillment worth it
amazon how to sell
how to start amazon business
list of amazon fulfillment centers
fulfillment process
fulfillment my membership info
amazon value proposition
amazon fba courses
how to open amazon account
amazon professional seller free trial
amazon fba product research
amazon shipping times
amazon business to business
how much to get free shipping on amazon
amazon online job
how much do amazon fulfillment centers pay?
step by
fees to sell on amazon
definition of fulfill
does amazon ship to uk
amazon business marketplace
learn how to sell on amazon
amazon business benefits
fba shipment
how much is an amazon account
earn using amazon.com
amazon clipart
amazon seller guide
benefit selling
how much does amazon take from sales
amazon fba packaging requirements
amazonfulfillment
amazon new account open
opening amazon store
global fulfillment
amazon seller fulfillment
how much for free shipping on amazon
amazon automatic ordering
account warehouse reddit
how to become amazon prime seller
sell items online free
how to sell on line
set up an amazon account
what’s the value of the item being mailed?
what does in fulfillment mean
private label amazon fba
how long does amazon take to ship with free shipping
amazon fba tutorial
amazon fulfillment jobs review
fba long term storage fee
how to compare items on amazon
amazon lower price refund
what can you sell on amazon
the fulfillment
how to make an amazon store
global fulfillment solutions
service amazon
amason seller
create an amazon seller account
amazon book sales calculator
how fba works
amazon fba label requirements
open new amazon account
amazon fba wholesale
amazon robot check
fufillment by amazon
fees for the return and disposal of fba inventory
boost with fba
fba long term storage fee
fba label size
fba inventory
alibaba amazon fba
amazon fba returns
fba returns
alibaba to amazon fba
amazon blocked unless fba
how to edit fba listing at amazon
amazon fba 2017
amazon fba mentor
is amazon fba dead
fba forum
sell books on amazon fba
how to print amazon fba shipping labels
poly bags for amazon fba
truth about amazon fba
amazon fba api
selling on amazon without fba
amazon labels fba
fees for the return and disposal of fba inventory.
amazon fba selling
how long does it take amazon to process fba
amazon fba label service
fba cheat sheet
amazon fba seller sales & profit excel spreadsheet
amazon fba shipping address
amazon fba fees 2017
amazon mexico fba
amazon fba address
amazon fba fees too high
fba tracking
amazon fba services
llc for amazon fba
amazon fba explained
amazon fba package dimensions
how much are amazon fba fees
sell books amazon fba
amazon fba center
reserved amazon fba
amazon fba maximum box size
fba powell
amazon fba bundle
fba music group
selling books amazon fba
amazon fba 101
fba storage fees 2018
amazon fba poly bags
amazon fba oversize dimensions
amazon fba accounting
amazon fba cal
best printer for amazon fba
what does reserved mean on amazon fba
amazon fba bundles
fba services
bookkeeping for amazon fba
amazon fba removal fee
amazon fba removal order
best label printer for amazon fba
fba product barcode preference
amazon fba return
amazon fba hawaii
amazon fba español
amazon fba split shipments
is amazon fba worth it reddit
is amazon fba still profitable 2018
fba couple
amazon fba giveaway
amazon fba suffocation warning
amazon fba ready to ship
how to send books to amazon fba
아마존 fba
does amazon collect sales tax for fba
how to start an amazon fba store on a tight budget
amazon fba missing inventory
amazon fba sole proprietor
what does reserved mean in amazon fba
label printer for amazon fba
sales tax amazon fba
amazon fba estimator
amazon fba return fees
amazon fba guide reddit
amazon fba hazmat
amazon fba tracking number
how to use amazon fba to fulfill ebay orders
how to package for amazon fba
does amazon collect sales tax for fba sellers
poly bag amazon fba
fba amazon canada
how to prepare fba shipment
amazon fba full time
fba global export
amazon fba sales
shipping books to amazon fba
selling on amazon’s fba program
amazon fba what does reserved mean
fba label service pricing
amazon fees for the return and disposal of fba inventory
amazon fba ebay
preparing fba shipment
blocked unless fba on amazon
amazon fba ups pickup
fba management
example of fba

What is Amazon FBA

It’s no secret: At Amazon, we obsess over customers. And our customers want a trusted destination where they can purchase a wide variety of goods—which is what makes sellers like you so important. We’re always looking for ways to add value for our customers and be Earth’s most customer-centric company. As an Amazon seller, you take part in offering those customers better selection, better prices, and a top-notch customer experience.

What is Amazon FBA

When you start selling on Amazon, you become part of a retail destination that’s home to sellers of all kinds, from Fortune 500 organizations to artisan vendors who make handcrafted goods. They all sell here for a reason: to reach the hundreds of millions of customers who visit Amazon to shop.

What is Amazon FBA

With two selling plans (they’re called Individual and Professional, but you can think of them as standard and premium), Amazon offers you the flexibility to sell one item or sell thousands. Before you begin registration, decide which plan is a better fit for your business.

What is Amazon FBA

The Individual plan costs $0.99 per sale, while sellers using the Professional plan pay $39.99 per month, no matter how many items they sell. If you sell more than 40 items a month, the Professional option makes a lot of sense. Whichever plan you select, don’t worry about making the wrong choice—you can change plans at any time.

How Does Amazon FBA Work

In order to complete your registration, make sure you have access to your bank account number and bank routing number, a chargeable credit card, government issued national ID, tax information, and phone number.

There are a few different types of selling fees you might pay, depending on your selling plan and the types of products you sell.

Subscription fees

These are the fees you pay for your selling plan, and they vary depending on which plan you select.
  • On the Professional selling plan there’s a flat fee of $39.99 per month and no per-item fee.
  • On the Individual selling plan there’s a $0.99 fee for each item sold.

Selling fees

These fees are charged per item sold, and they include referral fees (which are a percentage of the selling price and vary depending on the product’s category), and variable closing fees (which apply only to media categories).

Shipping fees

When you fulfill orders yourself, Amazon shipping rates apply. We charge these shipping rates based on the product category and shipping service selected by the buyer.

FBA fees

For products that Amazon fulfills for you (known as Fulfillment by Amazon, or FBA), there are fees for order fulfillment, storage, and optional services. (More information can be found on the FBA pricing page.)

How Does Amazon FBA Work

Once you register as an Amazon seller, you’ll have access to your Seller Central account. Think of Seller Central as your go-to resource for selling on Amazon. It’s a portal to your Amazon business and a one-stop shop for managing your selling account, adding product information, making inventory updates, managing payments, and finding helpful content to help you navigate your Amazon business. It’s also where you list all your products.
Below are a just few of the things you can do from Seller Central.

1. Keep track of your inventory and update your listings from the Inventory tab

2. Download custom business reports and bookmark templates you use often

3. Use customer metrics tools to monitor your seller performance

4. Contact Selling Partner Support and open help tickets using the Case Log

5. Keep track of your daily sales for all the products you sell on Amazon

The Amazon Seller app
Did you know you can keep track of your Amazon business even while you’re on the go? The Amazon Seller app lets you analyze your sales, fulfill orders, find products to sell, manage offers and inventory, respond to customer questions, capture and edit professional-quality product photos, and create listings—right from your mobile device. Never be more than a swipe away from your Amazon business.

How to list products

Listing your first product

To sell a product on Amazon, you must first create a product listing. Either match an existing listing (if somebody else is already selling the same product on Amazon), or create a new listing (if you are the first or only seller).

How Does Amazon FBA Work

The specific way sellers upload and list their products varies depending on their selling plan. To put it simply: Sellers using a Professional seller account have the option of listing their products in large batches using bulk uploading or inventory management with third-party systems, while Individual sellers list products one at a time.

The product detail page

A product detail page is where customers view a product sold on Amazon. If you’ve shopped on Amazon, you’ll probably recognize the product detail page. It’s where customers can find all the relevant information about a particular item.

When multiple sellers offer the same product, Amazon combines data from all the offers into one product detail page (so we can present customers with the best experience). You can propose product information on a product detail page, along with other sellers and manufacturers, and request detail page reviews if you think the information is not correct.

As you’re building your product detail pages, try to think about what will best help customers find your products, discover answers to their questions, and make a purchasing decision. Aim for the ultimate customer experience by making your listings concise, accurate, and easy to understand.

1. Images of the product (make sure they’re at least 500 x 500, and boost that size to 1,000 x 1,000 to increase the quality of your listings).

2. The title of the product (use 50 characters, maximum, and capitalize the first letter of every word).

3. Any variations of your product you have available, which may include things like different colors, scents, or sizes.

4. The description, which can be optimized for search engines using keywords to improve the reach of your product listings.

5. The Featured Offer, which is the section of the product page where customers can add items to their card or “Buy Now.” If you’re one of multiple sellers advertising the same product, research strategies for “winning” the Featured Offer to improve your overall sales.

6. The bullet point information, which should be short, descriptive sentences highlighting the products key features and differentiating characteristics.

Amazon Brand Registry
If you sell your products under a registered trademark, you may be eligible to enroll in Amazon Brand Registry at no extra charge. Brand Registry gives you control over product detail pages that use your brand name, and lets you add more rich media (like videos and enhanced text information) to your detail pages.

How to deliver products

Selecting the right fulfillment option

Amazon sellers have two options for getting shoppers their stuff: You can do it yourself, maintaining your own inventory and shipping products to customers (merchant-fulfillment), or have Amazon take responsibility for packaging, labeling, and shipping products through Fulfillment by Amazon (FBA). Each method has its own set of benefits—you just have to decide which one is right for your business.

If you’re fulfilling your own orders

Merchant-fulfilled just means you store and ship products directly to customers yourself. Amazon charges shipping rates based on the product category and shipping service selected by the customer, then passes the amount on to you in the form of a shipping credit.

Set shipping rates apply to all products sold with an Individual plan, so it’s important to determine if you can still price items profitably. Amazon’s Buy Shipping tool can help you get a great deal on shipping labels with Amazon’s trusted network of shipping partners, ship and confirm your orders, and track your shipments.

The benefits of Fulfillment by Amazon

Around the world, Amazon has more than 175 fulfillment centers which contain more than 150 million square feet of storage space. With FBA, you get to store your stuff on those shelves. You also get Amazon’s world-class customer service and returns, along with other advantages (like automatic Prime eligibility and Free Super Saver Shipping) that help you scale your business—fast.
Fees for using Fulfillment by Amazon (FBA)
1. Ship your inventory to Amazon. It will be scanned and made available for sale.
2. With each order, Amazon packages and ships the product directly to the customer.
3. Amazon collects payment from the customer and pays you available funds every two weeks.
4. Amazon’s customer service team handles questions, returns, and refunds.

Performance metrics (and why they matter)

Amazon sellers operate at a high standard so we can provide a seamless, delightful shopping experience. We call it being customer-obsessed, and as an Amazon seller it means keeping an eye on these key metrics:
  • Order defect rate (a measure of a seller’s customer service standards): < 1%
  • Pre-fulfillment cancel rate (initiated by the seller before shipment): < 2.5%
  • Late shipment rate (orders that ship after the expected date): < 4%
You can keep tabs on your performance and make sure you’re meeting your targets in Seller Central.

Customer reviews

Customer product reviews are an integral part of the shopping experience on Amazon, and they benefit both customers and sellers. Make sure you’re familiar with the right way and wrong way to get more product reviews and avoid policy violations.

Opportunities for business growth

This is only the beginning

The moment you’re selling on Amazon is the moment you can start growing your Amazon business. Once you’ve launched your business, Amazon has tools in place to help you take your business to the next level (or the next couple of levels).

Advertising

Amazon’s advertising solutions create new ways for you to reach and engage shoppers, regardless of whether they’re just starting to compare products, or ready to make a purchase. Ads show up right where customers will see them (like the first page of search results or product detail pages).

Amazon offers three advertising solutions, and all of them are accessible through Seller Central.

1. Sponsored Products
Sponsored Products are ads for individual product listings on Amazon, so they help drive product visibility (and product sales). They appear on search results pages and product detail pages.
2. Sponsored Brands
Sponsored Brands showcase your brand and product portfolio. They’re search-result ads that feature your brand logo, a custom headline, and up to three of your products.
3. Amazon Stores
Stores are custom multipage shopping destinations for individual brands that let you share your brand story and product offerings. (And you don’t need any website experience to use them.)

Promotions and coupons

Customers want to save, and promotions are an incentive to make a purchase now. There are three types of promotions: money off, free shipping, and buy one get one free. You can also offer percentage or money-off discounts with digital coupons.
FBA Export

Global expansion

Selling globally is a huge milestone for any business. It means hundreds of millions of new customers and the potential for a big boost in sales. Global expansion has a lot of moving parts, but with Amazon Global Selling, you get to use Amazon’s global infrastructure to get your products in front of a worldwide audience.

When it’s time to take your business to the next level, use Amazon Global Selling to list and sell your products on any of our online stores in North America, Europe, and Asia.

What makes a great seller?

A checklist for growth

Opportunities for growth are all around you—but here are a few things to try in your first 90 days as an Amazon seller.

Keep an eye on your account health in Seller Central

Use Fulfillment by Amazon or Seller Fulfilled Prime

Advertise your listings or offer deals and coupons

Enroll in Brand Registry and create enhanced brand content

Expand your selection by listing more products

Use the Automate Pricing Tool in Seller Central
Your first 90 days

Start selling today

Put your products in front of millions of customers that search Amazon.com every day.

What to sell on Amazon FBA

Another thing that’s amazing about this business model is that there’s no one way how to sell on Amazon FBA. Here’s a few of the most popular methods:

  1. Arbitrage
 Find low-priced items in retail stores or other online marketplaces to resell on Amazon at a higher value.
  2. Wholesale
 Buy bulk discount branded goods to resell on Amazon at a higher value.
  3. Used Book Sales
 Purchase used books at book sales, yard sales, or other places to resell on Amazon at a higher value.
  4. Private Label*
 Research and manufacture your own branded products to sell on Amazon FBA where you control every aspect of the product.
    *This is my preferred method how to sell on Amazon FBA.
What is private label?

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. In other words, you take a product that already exists and manufacture it with your own brand and logo.

Most successful Amazon FBA sellers are private label sellers.

Why sell private label versus the other methods?

Private label offers a ton of advantages over the other methods. Here’s a few:

  1. Less work sourcing. You only have to source a single product in large quantities versus many small products like you would with arbitrage or used book sales.
  2. Price control. The Amazon listing for your product is under your control. Therefore, you don’t have to worry about underpricing your competition like you would with wholesale or arbitrage.
  3. Higher profits. In my experience, private label is the most profitable and predictable method of how to sell on Amazon FBA.
How much money can I make selling private label?

Of course, everyone’s success varies with private label. However, if you follow the basic steps myself and Lenny outline to creating a private label product, this is roughly what you can expect to earn:

Image

How much work does the private label method take?

Ever hear of the 4-hour Work Week by Tim Ferriss? It’s the idea that you can design the lifestyle that you want so long as you can put your income on autopilot.

And that’s pretty much what you’re learning when you learn how to sell on Amazon FBA. Once your product is created and live on Amazon, you don’t have to do anything else but check on your advertising and make sure your inventory is stocked.

Just 4-hours a week and you can earn an extra $3,000 per month!

How do I create my first private label product?

It can be done in just five easy steps:

Image


  1. Research high-demand/low-competition products using our easy-to-use app called Scout.
  2. Source those products through Alibaba, a website that puts you in touch with 1000’s of manufacturers who are eager to do business with you.
  3. Create a brand new listing on Amazon. It’s so simple, you can do it in less than 40 minutes.
  4. Ship the products to an Amazon warehouse so it can be part of the Amazon FBA program and you won’t have to do all the back-breaking work.
  5. Launch and advertise your product using Amazon’s own advertising system which is as simple as clicking a few buttons.

Then, all you have to do after that is sit back and watch the profits roll in!

I know this is a lot of information to digest, but now it’s time to demonstrate how easy it is to find a private label product for you to sell.

This is an important part of selling on Amazon called “product research.” If that sounds like a lot of work, don’t worry. Believe it or not, Amazon actually offers up data on how well each of their products sell.

In fact, one of the key metrics that we use to determine a product’s demand is found right on the Amazon product pages: the Best-Seller Ranking (BSR).

What is the Amazon Best-Seller Ranking?

Image

Each and every product on Amazon gets a BSR. The lower the BSR, the more sales the product makes. We can take the BSR and translate it into average monthly sales.

For example, if we want to see how well the same product above does in sales, we can take the BSR and put it into our FREE sales estimator tool. Check out what we get:

Image

Of course, it only helps you learn how well one product is doing at a time. We want to see how multiple products in a single search (also called a ‘niche’) are doing and what their average is.

You could do all of that by hand on a spreadsheet, but it could take you hours. That’s what I used to do when I started, and I don’t recommend it!

Fortunately, I created a better way with Extension.

Extension

With the Chrome extension, you can pull up an Amazon search page and simply click the “JS” Chrome button to discover how profitable that product niche is. Immediately, the extension creates a spreadsheet that estimates the sales for each and every product on that page in 10-seconds or less.

Take a look at the results for yoga mats:

Image

We can see that yoga mats on the first page of sales results are selling an average of XXX units per month. Plus, there’s other important information Extension provides:

  • Average Best-Seller Ranking. The lower this is overall, the better it is for your 
future sales.
  • Average Price. This shouldn’t be too high or too low. In fact, I like to look for products priced between $18-$60.
  • Average number of reviews. This lets you know how competitive a product is. I 
aim for products with less than 100 average reviews.
  • Opportunity score (Pro version only). This awards each product niche a rating 
from 0-10. 0 being the worst, and 10 being the absolute best.

Armed with this powerful tool, you can quickly search through multiple product categories in just a few minutes.

Here’s what else Extension does:

  • Seller data. See who is selling the product: whether it’s another FBA seller, a 
merchant seller, or even Amazon itself.
  • Historical rank and sales. Want to know how well the product has done over 
time? Clicking on the BSR and average sales for each product will tell you.
  • Google trends. Is your product a seasonal product or is it popular year 
around? You can find that out, too!
  • International compatibility. Extension works in all 
Amazon marketplaces worldwide (Australia coming soon).

Remember when I mentioned that the average private label product can earn as much as $3,000 per month in profits? That’s $36,000 per year. And all it takes is a few minutes of research to find your dream product.


More Resources

Now that you know a little bit about selling on Amazon and we’ve shown you how to find a private label product using Jungle Scout, it’s time to consider the other elements of the Amazon FBA private label model.


How to source a product on Alibaba
Once you’ve discovered your product through research, you’ll need to source it through a manufacturer. There’s plenty of options out there, but your best bet is with Alibaba. We include, in detail, how to source products through Alibaba in this free guide: The Sourcing Ebook. You can also check out these two sessions from our Million Dollar Case Study series: Outreach to Suppliers, and Evaluating Samples.

How to build a killer Amazon product listing that sells
Then, after you’ve made a deal and your products are being created, it’s time to start building your Amazon product listing. This is an incredibly important part of how to sell on Amazon FBA, so we want to make sure you know all the best tricks, tips, and strategies to build a listing that sells. Make sure you read this guide, which is part of our infamous Million Dollar Case Study: How to Create an Optimized Amazon Listing.

How to ship your products from the manufacturer to Amazon
Next, you’ll need to ship your product from the manufacturer to Amazon. This might seem difficult, but we’ve actually got a few resources that can make this as easy as ordering a pizza! Check out this guide on how to ship your products to Amazon. Million Dollar Case Study: How to Import from China.

How to launch and promote your product
Finally, you will need to launch and promote your product once it hits Amazon. Again, this might seem difficult, but it’s crazy easy. In fact, once you knock this one out, there’s very little you’ll have to do beyond tracking ads and making sure your stuff stays in stock. In other words: congratulations! You’re at the finish line. Here’s another guide from the Million Dollar Case Study that shows you some tips and tricks to launching and promoting your product: Amazon Product Launch Strategies.

2 thoughts on “Amazon FBA: What is Amazon FBA and How Does Amazon FBA Work”

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top