How To Start An Amazon Fba Business With Little Money

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October 6, 2021


It's no wonder that selling on Amazon can be a great way to kick start your business journey. And FBA (Fulfilled by Amazon) service can help you do that, even if you're on a budget. Beginner entrepreneurs often wonder if it's possible to start an Amazon business with little money. Say, less than $1000 or a bit over $500. Besides, is the Amazon FBA startup actually worth it?

The answer is YES, you can start FBA with a small investment, and YES, it's worth it! So let's find out how to start an Amazon FBA business with little money.

Is Amazon FBA A Profitable Business?

Amazon FBA is indeed profitable, but you need to plan a lasting strategy to grow your business. But how does Amazon fulfillment service help you in the process?

Fulfillment by Amazon refers to storing, packing, and shipping service of seller inventory by the Amazon authority. The service also handles returns, exchanges, and customer support. As a seller, you get to store your products in Amazon’s warehouses via FBA, and Amazon will pack and ship those products if an order is placed.

But why choose Amazon FBA, and where does the extra profit come from?

1. It’s Cost-effective

Choosing FBA service means you get to use Amazon warehouses, and Amazon will send the products to customers instead of you paying shipping cost separately. Although FBA charges you for each delivery and storage (per cubic foot), the service is, without a doubt, your best bet in the long run. Small entrepreneurs also get to sell their products for a higher profit through retail arbitrage and reselling. Besides, Amazon's storage service also helps big-time business owners cut warehouse, utility, and workforce expenses.

2. Easier Re-selling Process

Investing in large quantities of different products can be an issue while starting a business, especially with little money. Amazon FBA can help! No matter the product and quantity you are selling, Amazon handles all the details, storage, deliveries, customer service, and more.

3. Attracts More Customers

According to a recent Amazon survey, 88% of Pro Merchants claimed their sales increased after joining Amazon Fulfillment. Why? Because Amazon has over 300 million users worldwide and it is undoubtedly the biggest e-commerce site right now. Moreover, you get to attract more customers through the FREE 2-day shipping FBA feature!

4. It’s Competitive

FBA creates the competition, beats the competition. Due to its many convenient features, it attracts new business owners every day! This creates massive competition among sellers, and all you need is an organized strategy to survive. Competition drives you to do something different, something better than others. With Amazon's FBA, reaching out to your sellers is a child’s play once you start to grow your business.

Indeed, Amazon doesn’t offer their services for free, but they ensure you profit. Not to mention, being a part of the biggest e-commerce shop cut the advertisement prices! But the competition is ever-growing. So, the sooner you make an unbeatable plan and join the FBA program, the better the chances of booming your business.

Want to find out more benefits of Amazon FBA? Amazon automation services can help you grow your business and do all the hard and repetitive work for you.

How To Start An Amazon Fba Business With Little Money

Getting started with Amazon FBA? Kicking off with little money means you need to know exactly where and how to invest because the margin of error is so small. So, here's a guideline you can follow as a beginner.

1. Product Research

Spend time and effort researching Amazon products and their demand and try to understand what customers want. Knowledge is not something you can gather overnight. Therefore, you need to learn about selling, and the Amazon seller guide can help you out.

The research criteria may vary among sellers. But it's a safe bet to consider product size, demand, seasonality, damage risks, brands, and last but not least, the competition.

In-demand and profitable products include books, electronics, clothing, kitchen appliances, baby items, etc.

2. Proper Selling Strategy

Currently, the competition is enormous. So, planning a proper business model is a must! Most sellers with a budget would go for retail arbitrage, where you buy products on sale and then resell them online for a profit. You can also purchase products from B2B e-commerce platforms such as Alibaba and then resell them on Amazon for a profit. You can even sell used products in selected categories. However, success depends on researching the market and product demand efficiently.

3. Sign Up with Amazon

The next step is to create an Amazon seller account and get started with FBA. Here, you need to decide whether you should go for the free individual seller or the paid professional plan. We suggest starting with an individual seller account and then shifting to a professional when you sell more than 40 products each month.

Things you'll need to sign up include:

4. Listing the Products

Now that your seller account is up and running, it's time for product listings. Some product categories are restricted only to professional or brand sellers. Learn more in the Seller Central.

The listing process includes offering details such as title, brand, product description, related pictures, etc. In addition, you need to include prices, available quantity, product condition, and other FBA requirements. Also, you should specify the Fulfilled by value to Amazon.

An individual user can list a single product at a time, while professional users can list in bulk.

5. Shiping the Inventory

Your final steps involve creating a shipping plan, organizing and stacking products, and labeling the inventory or have Amazon do it. However, remember that Amazon FBA charges you based on storage, weight, season, return, and other fulfillment fees. So, it’s important to pack correctly to avoid further inconveniences.

Finally, you have to send the products to the designated Amazon Fulfillment center.

Conclusion

Business requires some investment to establish a legitimate source of income. Business with Amazon FBA takes a lot of time and effort to grow, but having a little money shouldn’t be an obstacle in your way. And FBA makes business way easier as an acclaimed, cost-effective, and efficient way of starting an Amazon business with little investment.

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