A Beginners Guide to Amazon FBA

A Beginners Guide to Amazon FBA

Home / Guide / A Beginners Guide to Amazon FBA

What is Amazon FBA

How does FBA work?

How to sell using Amazon FBA

3 best tools to help you find the most profitable products to sell using Amazon FBA

Benefits and disadvantages of selling on Amazon using FBA program

A Begginers Guide to Amazon FBA
A Begginers Guide to Amazon FBA

Amazon FBA program is one of the most popular ways that you can make online on the vast Amazon marketplace. It is also one of the simplest and most profitable ways of earning money online! The entire process is so simple that anyone can get the hang of it, so read on if you want to start making money!

Amazon is the world’s largest marketplace that offers millions of products to sell. They have earned over 250 billion dollars in pure profit and that number is becoming even larger by each passing year. About half of all the products available for purchase are sold by third-party vendors, meaning regular people working from their home, so can you imagine how much money that is?

With over 2 million people utilizing all of the benefits that Amazon provides there is certainly room for one more successful story.

What is Amazon FBA?

FBA is short for Fulfillment By Amazon. Amazon is providing you with an opportunity to use their vast network of warehouses and delivery vehicles to start selling your products on their site. Amazon takes care of packing and product delivery and you take care of finding the product to sell and promoting.

The journey starts by registering on Amazon Seller Central.

There you can choose one out of 2 selling plans:
  • Individual - no cost, but you are charged with $1 for each product you’re selling
  • Professional - 40$, with no product selling fee

How does FBA work?

After you have registered with Amazon Seller Central, decided upon the product to sell and have chosen your selling plan, it’s time to choose a product category under which your product falls in.

Amazon takes a cut out of every product sold, and while it ranges differently between niches, you can expect about a 15% fee.

After you have chosen the product niche, Amazon will assign you a warehouse where you will be sending your shipment. You then print out the UPS packing slip and send your products via your preferred shipping service.

Once your product arrives, Amazon will notify you so that you can put it up on your store and start selling it!In case of any damages, Amazon will fully reimburse you, which is great.When someone clicks on the buy button on your product’s listing, Amazon will take care of the rest. They will pick your product, package it and send it to the customer.

But, how to choose which product to sell? Don’t worry, we have you covered.

How to sell using Amazon FBA?

There are 3 preferred ways of making money on Amazon:
  • Retail arbitrage - selling cheap products in original packaging bought cheaply elsewhere
  • Wholesale - selling products in bulk by acting as a middleman between manufacturer and customer
  • Private label - sourcing your own product and branding it while providing customers with some additional benefits

While each of these methods is can bring you money, the preferred method of selling on Amazon FBA by the majority of successful sellers is by selling your own private label products.

The process is simple:
  • Find the manufacturer - usually on Chinese sites such as Alibaba
  • Order a sample
  • If satisfied order in bulk and rebrand it
  • Send the shipment to Amazon
  • Promote it and make money

Choosing the right product to sell is essential. Without a product, you don’t have a business! But, you should strive to choose the right one, because there is nothing more frustrating than sending thousands of dollars sourcing and branding your product just to see it collecting dust in some Amazon warehouse.

Well, luckily for you, there are all-in-one applications made with that precise intention in mind. They will guide you through the whole process. By using them, you will have a birds-eye overview of the whole market so that you can choose a product that has a high sales volume, low competition, and huge potential.

3 best tools to help you find the most profitable products to sell using Amazon FBA

If you are depending upon your gut feeling to decide upon the product to sell, chances are that you will only lose money. In this age of information that we live in, those that have the best access to data and know how to analyze it will win. Here are 3 of the best tools that you can use to guarantee yourself a successful Amazon selling journey:


IOScout is the best tool when it comes to analyzing product data. With over 150 million products in their database, they provide you with the most accurate data available.

More than 30 000 satisfied clients confirm it.

Some of the features IOScout provides are:
  • Access to vast product database - you can find profitable products in mere minutes by applying search filters such as sales volume, revenue prediction, number of reviews, number of sellers and much, much more
  • Product tracker - With graphs that show price movement that updates on an hourly basis, you can easily be informed about any product data. You can also easily analyze your competitors by spying their best selling products
  • Trends and History - if you want to predict market movement, you have to know the product data. Choose any product of your interest and you will get its history which will help you predict future trends
  • Chrome Extension - IOScout comes together with a Chrome extension that is made to give you a fast overview of the product data so that you can save yourself valuable time.

Jungle Scout

Made by a team that prides itself on all being successful FBA sellers, Jungle Scout was designed to provide sellers with all the data that they need.

Some of the features that it has are:
  • Sales estimator tool - find potential winners by applying filters that will show the estimation of the number of sales that the product generates.
  • Keyword research and listing optimization - keyword optimization is key to Amazon’s SEO, you have to capture the maximum amount of traffic that you can, as well as know-how to convert prospects into buyers.
  • Competitor analysis - keep tabs on your competitors by spying their strategy.
  • Amazon price tracking - get the latest data on the price movement of products you are interested in.
  • Profit calculator and many more.

Jungle Scout, like the name implies, was made to help you find the most lucrative products in the Amazon marketplace jungle.

By choosing the right product you will guarantee yourself success and will get a competitive edge over other vendors who rely just on their intuition to make a profit!

Helium 10

To paraphrase the words of its founder, Manny Coats, Helium 10 was created to provide a highly accurate and powerful software at an affordable price that will allow the next generation of successful Amazon entrepreneurs achieve financial success that they deserve

Some of the features that Helium 10 provides are:
  • Product research
  • Keyword research and optimization
  • Helping you with product launch
  • Keyword tracking
  • It helps you with managing refunds
  • Sales estimation and profit calculator and many more

Helium 10 is truly a beast of a tool that will take out a huge amount of guesswork when it comes to deciding your FBA selling strategy. No matter if you are just starting to sell or have already gained some initial success, Helium 10 will catapult your business into the stratosphere.

Benefits and disadvantages of selling on Amazon using FBA program

If you are still on the fence whether or not to choose Fullfilment By Amazon as your fulfillment option, well.. you shouldn’t be.

The advantages are quite obvious:
  • Amazon takes care of storing your product
  • The package and ship the product
  • They pay for the damages
  • You can use Amazon Prime to capture customer attention and much more

Disadvantages are mainly in the fact that you will be paying Amazon a fee for their service but don’t try to save every possible dollar. The time that it would take you to do the same work is worth much more than Amazon is charging you.

Hopefully, by the end of this guide, you have gained enough knowledge to decide to start your FBA store. While reading different guides is valuable to get an overview of all the different facets and requirements of the marketplace, you should always strive to learn by doing, not by reading. So, make that bold step forward and follow the steps outlined here to claim your success!