How to Start Selling on Amazon FBA and Make a Full-Time Income. – How to get started selling Amazon and how to sell on Amazon FBA for beginners from a pro making six figures!
Fun fact: did you know that Amazon wants to pay you? No, really they do! It’s something called Amazon FBA. And if you have been looking for an awesome side hustle or a full-time income making money from home, then you need to read this interview with my friend, Jessica!
Wanna know how to start selling on Amazon FBA? Let’s talk about it…
Jessica and her family are Amazon pros. She learned exactly how to start selling on Amazon FBA and then she ran with it. Now, she’s making six figures from her Amazon FBA sales (WHAT?!) and she is here today to share with you how to sell on Amazon FBA for beginners. If you’ve ever wondered how to get started selling Amazon for yourself, keep reading!
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How to start selling on Amazon FBA
Can you give us a little background on yourself – how you started selling on Amazon FBA, and how business is going for you right now?
I dreamed of owning an online business for quite awhile before I started selling on Amazon. And I had started an online side hustle to supplement my job at the time. But really just considered it a hobby and something that gave me “fun money”. I was selling stuff on eBay.
Then in 2008, I got laid off when the economy tanked. And I decided I would never work for someone else again. I really wanted to be my own boss, make my own hours, and be in charge of my own salary. Mainly, I didn’t want to deal with experiencing a lay off again.
So I took my last paycheck and cashed it in to find inventory for eBay. Within a few months, I was able to replace my previous income. It wasn’t huge, but it was still an accomplishment for me.
After a while, I realized how much my husband was hating his job. He was really stressed out and didn’t enjoy what he was doing. I had a thought that it would be great if I could make enough that he could quit his job and work from home too.
I knew that I’d have to scale the business in order to replace Cliff’s $5,000/month salary, but it would be nearly impossible to do that with eBay alone. Finally, I had heard about selling on Amazon through some eBay forums I followed, and decided to give it a try.
It took about a year of selling on Amazon, but I did it! I worked nights and weekends while Cliff watched our new baby, and a year later,Cliff was able to leave that job that he hated.
Things have gotten even better since then. We figured out how to start sell on Amazon FBA to make a lot of our annual income in a short period of time. We did that by really focusing on the fourth quarter (crazy holiday sales!). That way, we can relax a bit the other three quarters.
Not that I totally slack off! I keep busy running our Amazon training courses (the ones where I share how to start selling on Amazon FBA and especially how to sell on Amazon FBA for beginners!). Recently I’ve diversified to include teaching others how to develop their own digital courses, build their own websites, and to succeed with blogging.
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What is an Amazon FBA business? Can you explain this more for those who have no idea?
Basically, an Amazon FBA business means we have an online store and Amazon handles the orders for us. FBA means “Fulfilled By Amazon.” And that means we don’t have to deal with storing inventory and fulfilling every single order ourselves!
We decide what inventory we want to carry, ship it to Amazon’s warehouses, and then they store it for us until it sells. Amazon does the packing and shipping, and then takes care of any customer service, including returns. For that, they take a commission (fees).
When you participate in the Amazon FBA program, your inventory is available for Amazon’s Prime shipping, which is its free 2-day shipping subscription service.
That gives FBA sellers an advantage over those who don’t participate because a lot of buyers only search for items that offer Prime service. And they will pay more for that convenience.
There is a little more to it, but that covers the basics 🙂 I have a post that is almost 4,000 words to better describe how it all works. If you are interested, you can ourAmazon beginners guide(totally free).
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What stores do you typically go to for your stock?
We’ve gone everywhere from big box retailers like Walmart and Toys R us to liquidation stores and online retailers. There are so many options. A lot of sellers also do well shopping at retailers that are only available in their part of the country, which means the product can be hard to find.
There are5 main ways that we sourceinventory for our business. They include regular stores clearance aisles, liquidation stores, online stores, using virtual assistants and grocery stores.
Honestly, ANY store is fair game when it comes to selling on Amazon. That’s why I’m so passionate about sharing how to start selling on Amazon FBA!
How do you pick and choose what to buy?
The simplest answer is that we’ll sell anything that makes a profit! It’s kind of crazy the variety of things we’ve sold. But there are actually a lot of factors to consider.
When I started, I chose categories I was comfortable with and knew something about. So I focused on kitchen and home, or beauty and grocery. And then when Christmas came around, I’d, of course, look for toys to sell.
When you create a selling account on Amazon, you’re able to download a free app that allows you to scan product barcodes, then pull up information on those items. We can see what that product is currently selling for on Amazon and how much competition there is. We can also see how it ranks in a category, which means we can get a good idea of how often that product sells.
Most of the time, we like to set a minimum dollar amount of profit per item, a minimum return on investment, and we also want to turn over our inventory quickly. So ideally, we’d like to double our investment and to sell off our inventory within a month. One thing that makes things easier is to find replenishables, which is something that sells over and over again rather than always searching for one-offs.
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How are items that you list priced?
We set the price for our inventory ourselves and do it online through our Amazon seller account. We are also able to change prices whenever we want, either by logging in and manually entering a new price or by using something called a “repricer,” which will automatically adjust prices according to whatever criteria we provide.
How much can a brand new Amazon FBA business owner expect to make initially? How much can someone expect to make about a year after they start?
There’s no one answer to that because everyone runs their business a different way and has their own goals. Some people do it as a hobby, others part-time, and others want to go full-time and have it be their sole source of income. And even those mean different things to different people (like our cost of living here in California is a lot higher than most other parts of the country!).
However, we do advise new sellers in ourAmazon Boot Campto expect it to take about three months before they can turn a profit. That’s pretty fast when you think about how long it usually takes people to make a profit when they start any type of business. People usually look three to five years out.
As for one year after they start, that’s really up to each seller. They can do almost anything they want within a year if they build it the right way and really focus on it.
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Can anyone become an Amazon seller?
In general, anyone can become an Amazon seller, as long as they meet the requirements and comply with Amazon’s policies and guidelines.
To become an Amazon seller, you’ll need to create a seller account, provide some basic information about your business and products, and agree to Amazon’s terms and conditions. Depending on the type of products you plan to sell, you may also need to provide additional documentation, such as proof of ownership or authorization to sell certain brands or products.
It’s important to note that Amazon does have certain restrictions and requirements for sellers, such as restrictions on selling certain types of products or in certain categories, and requirements for providing accurate and timely shipping and customer service. In addition, Amazon may review and monitor your account for compliance with their policies and guidelines, and failure to comply can result in account suspension or termination.
Overall, while anyone can become an Amazon seller, it’s important to carefully evaluate your business and products and ensure that you can meet Amazon’s requirements and provide a positive customer experience. By doing so, you can maximize your chances of success on the platform and build a profitable business as an Amazon seller.
How much does it cost to start being an Amazon seller?
Well, the cost of becoming an Amazon seller can vary depending on various factors. However, I’ll try to give you a rough estimate to help you plan your budget accordingly.
To start selling on Amazon, you’ll need to create an Amazon seller account. This process is free, but there are certain fees associated with selling on Amazon. The two main types of fees are the referral fee and the fulfillment fee.
The referral fee is a percentage of the sale price that Amazon charges you for every item sold. The referral fee varies depending on the category of the item you’re selling, but it can range from 6% to 45% of the sale price.
The fulfillment fee is the fee Amazon charges you for storing, packing, and shipping your products to customers. This fee varies depending on the size and weight of your product, as well as the shipping method you choose.
In addition to these fees, there may be other expenses you need to consider, such as the cost of inventory, packaging materials, and marketing expenses.
All in all, the cost of becoming an Amazon seller can range from a few hundred to a few thousand dollars, depending on your product category, inventory size, and marketing strategy.
So, if you’re considering becoming an Amazon seller, it’s important to carefully consider your expenses and budget accordingly.
How to become an Amazon seller without inventory?
If you’re interested in becoming an Amazon seller but don’t want to manage inventory, there are a few options available to you:
- Sell digital products: You can sell digital products such as ebooks, music, videos, or software on Amazon without managing physical inventory. Amazon’s Kindle Direct Publishing and Amazon Music services are examples of programs that allow you to sell digital products on the platform.
- Use dropshipping: With dropshipping, you can sell products on Amazon without holding inventory yourself. Instead, you work with a supplier who ships products directly to your customers. However, it’s important to note that dropshipping on Amazon does have certain restrictions and requirements, and it’s important to carefully evaluate your suppliers and ensure that you can provide accurate shipping and customer service.
- Utilize Amazon’s FBA (Fulfillment by Amazon) program: With FBA, you can ship your products to Amazon’s fulfillment centers, and they will handle the storage, packing, and shipping of your products to customers. This allows you to sell on Amazon without managing your own inventory, although it does come with additional fees.
Overall, there are several options available for becoming an Amazon seller without managing inventory. It’s important to carefully evaluate your options and choose a strategy that aligns with your business goals and budget.
Is it free to sell something on Amazon?
While creating an Amazon seller account is free, selling on Amazon is not entirely free. As an Amazon seller, you’ll need to pay certain fees associated with selling on the platform.
The two main types of fees are the referral fee and the fulfillment fee. The referral fee is a percentage of the sale price that Amazon charges you for every item sold, while the fulfillment fee is the fee Amazon charges you for storing, packing, and shipping your products to customers.
The referral fee varies depending on the category of the item you’re selling, but it can range from 6% to 45% of the sale price. The fulfillment fee varies depending on the size and weight of your product, as well as the shipping method you choose.
In addition to these fees, there may be other expenses you need to consider, such as the cost of inventory, packaging materials, and marketing expenses.
So, while it’s not free to sell something on Amazon, it can still be a cost-effective way to reach a large customer base and grow your business.
What do you like most about selling on Amazon FBA?
I love being in charge of my life, being able to create my own salary and my hours and to spend as much time with my family as I want. My husband Cliff and I work this business together, which is awesome. And I’ve been able to fulfill a dream of homeschooling my son.
There’s really no other opportunity like this right now. With selling on Amazon FBA, a brand new seller can hook into Amazon’s platform and take advantage of its huge reach.
As someone who also teaches Amazon FBA, it has been such an amazing experience for me to watch others start this business and see success. People share with us how they have tried so many other businesses but this is the first they’ve actually been able to make money with.
Can you give some advice on how to start selling on Amazon FBA for beginners?What does it take?
It’s really pretty easy to get started, which can be good and bad. It’s good because anyone can do it, but not so good in that it’s so easy that a lot of people don’t take it as seriously as they probably should. They think it’s going to be a lot easier than it is.
The concept is pretty simple, but there’s a pretty steep learning curve when it comes to piecing together all the details. There’s some paperwork to fill out to set up a seller account and then a lot of new lingo for sellers to learn. And then it takes some time to learn how to evaluate potential inventory
All you need to do is create a seller account on Amazon download the seller app, and then start practicing with it. We tell people to scan things around the house to learn and get comfortable with it.
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How much does it cost to start selling on Amazon FBA and how much on a monthly basis to maintain it?
We tell new sellers that it would be great if they couldstart an Amazon business for $1,000 or less. That would get them some tools, inventory, and a good training course (like ours!).
If someone has a smartphone, computer, and printer, they can get the rest of the basics for tools for about $100. A lot of people will invest more than that to buy tools and subscriptions that will help make them more efficient, but it’s not totally necessary.
Then they could invest about $500 or so in inventory, which would give them the ability to get a good amount and some variety. We teach new sellers to “go wide, not deep,” which means they should send in 3 to 5 of any one product to test it out. We’ve seen a lot of people get excited and buy 100 of something, only to find out they got a bad deal, and we want to help others avoid that.
Sellers will need things like boxes and packing tape to ship inventory, as well as labels and some packing supplies.
A training is, of course, optional, but we’ve found it really helps new sellers grow faster and make fewer mistakes.
A seller’s monthly expenses will vary depending on what tools and training they use. But to start with, the Amazon seller account is about $40/month; there’s also a free option, though Amazon will charge sellers an extra fee per item they sell and they won’t have a lot of the advantages of the professional account.
Most new sellers’ recurring expenses are less than $100/month, not including inventory, though they can go higher depending on the tools they choose to use.
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Are there any other tips that you have for someone who wants to know how to start selling on Amazon FBA for themselves?
I would say just go for it! This is the type of business where the barrier to entry is really low, so you can test the waters without spending too much time or money.
I have aFree Amazon FBA Starter Coursethat can really help you decide if this business is for you and make sure that you know what to expect as you get started.
The worst thing we see people do is get stuck in information overload mode. There is a lot of information out there about Amazon. This is good and bad. It’s good, because it shows it is a legit thing to do. But, it’s bad because a lot of times the information is so scattered and sometimes even conflicting.
This causes some people to just get stuck and not actually take a chance by getting started!
Is selling on Amazon that easy?
Selling on Amazon can be a great way to reach a large customer base and grow your business, but it’s important to note that it’s not necessarily easy. While Amazon provides a platform for sellers to list their products and reach customers, there are several factors that can impact your success on the platform.
Firstly, you need to have a product that meets Amazon’s guidelines and requirements, such as quality standards, pricing, and fulfillment options. You also need to have a competitive pricing strategy and effective marketing strategy to stand out from other sellers.
In addition, you’ll need to manage your inventory, handle customer inquiries and complaints, and navigate Amazon’s complex fee structure and policies.
All of these factors require time, effort, and attention to detail, which can make selling on Amazon challenging for some sellers.
That being said, many sellers have found success on Amazon by investing in their product quality, customer service, and marketing efforts. So, while it may not be easy, selling on Amazon can be a rewarding and profitable experience for those who are willing to put in the work.
If I want to start selling on Amazon as a third-party seller, do I need to pick one niche or can I sell multiple products?
As a third-party seller on Amazon, you can sell multiple products across different categories or niches. Amazon provides a platform for sellers to list their products in a wide range of categories, from electronics and apparel to home and garden products.
That being said, it’s important to have a clear strategy for selecting and marketing your products. While you can sell multiple products, it’s generally a good idea to focus on a few key niches or product categories that align with your brand and target audience.
By focusing on a few key niches or product categories, you can develop expertise and build a strong brand identity that resonates with your customers. This can help you stand out from other sellers and increase your chances of success on the platform.
In addition, it’s important to carefully research and evaluate the competition in your chosen niches or categories. By understanding the market and your competitors, you can develop a pricing and marketing strategy that maximizes your profits and minimizes your risks.
Overall, while you can sell multiple products on Amazon as a third-party seller, it’s important to have a clear strategy and focus on a few key niches or categories that align with your brand and target audience.
What can someone learn from you and your products?
In ourAmazon Boot Camp, we specialize in walking sellers through every step of the process, from setting up their accounts to making their first sale. And we do it in a step-by-step way that’s very straightforward and easy to follow.
We focus on retail arbitrage, which is when you find products in brick-and-mortar stores, though we also teach online arbitrage.
The Boot Camp also touches on bonus topics like sales tax and accounting, and it includes access to a private Facebook group where members can come ask any questions and get quick answers. It’s a great resource and we’re really proud of our community, which does an amazing job of helping each other out.
We also have some training courses for people who are already established and selling on Amazon.
Do I need to pay for advertisem*nts or learn about SEO to be an Amazon FBA seller?
While it’s not strictly necessary to pay for ads or learn about SEO to be an Amazon FBA (Fulfillment by Amazon) seller, it can be helpful in increasing your visibility and sales on the platform.
Amazon offers several advertising options, such as Sponsored Products and Sponsored Brands, which allow you to promote your products and reach more customers. While these advertising options can be effective, they do come with a cost, and it’s important to carefully evaluate your ROI (return on investment) before investing in advertising.
In addition, understanding and optimizing your product listings for SEO (Search Engine Optimization) can help improve your visibility on Amazon and increase your sales. By using relevant keywords in your product titles, descriptions, and backend search terms, you can improve your chances of appearing in customer searches and ranking higher in Amazon’s search results.
While SEO can be complex and time-consuming, there are many resources available to help you learn and implement effective SEO strategies on Amazon. Amazon also provides tools and resources, such as the Amazon A9 algorithm and the Amazon Keyword Tool, to help you optimize your product listings for search.
Overall, while it’s not strictly necessary to pay for advertisem*nts or learn about SEO to be an Amazon FBA seller, it can be helpful in increasing your visibility and sales on the platform. By carefully evaluating your options and investing in strategies that align with your business goals and budget, you can maximize your chances of success on Amazon.
What kind of fees do third-party sellers need to make money from selling on Amazon?
You’ll need to pay certain fees to make money from your sales. These fees include the referral fee, fulfillment fee, and any optional fees for advertising or other services.
The referral fee is a percentage of the sale price that Amazon charges you for every item sold, while the fulfillment fee is the fee Amazon charges you for storing, packing, and shipping your products to customers.
In addition to these fees, there may be optional fees for advertising, account management, or other services that can help you grow your business on Amazon.
While these fees can add up, many third-party sellers have found that the benefits of selling on Amazon, such as access to a large customer base and the convenience of FBA (Fulfillment by Amazon), can outweigh the costs.
So, if you’re considering selling on Amazon as a third-party seller, it’s important to carefully evaluate the fees and benefits and develop a pricing strategy that maximizes your profits while remaining competitive in the marketplace.
Do I need to pay for storage fees or do Amazon fulfillment centers store the products for me as an Amazon FBA seller?
You’ll need to pay for storage fees for your products stored in Amazon fulfillment centers or Amazon warehouse. These fees are based on the size and quantity of your products, as well as the time of year and demand for storage.
While storage fees can add up, many FBA sellers find that the benefits of using Amazon’s fulfillment services, such as faster shipping and access to Prime customers, outweigh the costs.
So, if you’re considering selling on Amazon as an FBA seller, it’s important to carefully evaluate the storage fees and benefits and develop a strategy for managing your inventory and maximizing your profits.
Can you tell us some other people who have made selling on Amazon FBA into a full-time gig?
There are tons of people who have turned selling on Amazon into a full-time gig! We’ve helped a lot of our students reach their goals, whether it’s to go full-time or to supplement their income.
One of our recent studentsbuilt a $10,000/month Amazonbusiness within a few months, mostly focusing on groceries. He started in the winter, too, which a lot of people assume is slow!
We’ve worked with people of all ages and from all kinds of backgrounds. If they’re open to learning and to putting in some work, they have a great chance at success. Some of our students have goals of replacing their incomes, while others hope to just have some travel money.
That’s another thing that is really great about Amazon. There are no minimums or maximums. You get to decide how much time/money/effort you want to put into it.
I hope that reading Jessica’s story helped you to find out how to start selling on Amazon FBA for yourself!Remember, she has aFREE Amazon FBA Starter Coursethat gives you 10 free videos to dig further into Amazon FBA.
Do you still have questions about how to start selling on Amazon FBA? Leave them in the comments!
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How to Start Selling on Amazon FBA and Make a Full-Time Income – How to get started selling Amazon and how to sell on Amazon FBA for beginners from a pro making six figures!
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