Today we go over all the basics on how to sell on Amazon FBA and how exactly it works to our advantage.

Determine your products and range. Spending time on product selection at the outset will help you make informed business decisions further down the track.  Take the time to look at existing products from other Amazon sellers to make sure you have a good chance of being able to sell your products at a price that allows you to make a profit.

 

Calculate Amazon revenue. This would require you to first estimate your monthly sales volume for Amazon products, based on the product’s Sales Rank and current price. You can also add your Shipping Cost and Cost Price to get your total revenue and potential profit figures.

This will enable you to get a guide of whether a product opportunity is worth pursuing before identifying and placing an order with any supplier.

Open an Amazon Seller account & sign up for Amazon FBA

How to Sell On Amazon FBA

You’ve identified your product range. You’ve found a good supplier. Now it’s time to sign up for Amazon!

Once you’ve become an Amazon Seller you’ll also require to sign up for FBA, which has a huge number of benefits:

  • 2-day Amazon Prime shipping
  • Managed customer service and returns
  • Send products from your supplier directly to Amazon
  • Shipping costs from Amazon to your customer are included in your FBA fees
  • Multi-channel fulfillment if you have an eBay or Shopify store
  • It’s worth noting that some businesses prefer to have more control over their distribution and fulfillment processes as Amazon vendors. If you’re not sure which is best for you, see our guide to being an Amazon Seller vs. an Amazon Vendor.

Create an FBA Shipping Plan

How to Sell On Amazon FBA

The resist stops with you when it comes to ensuring the quality of your products, so make sure they’re in good condition by inspecting them thoroughly before they move into Amazon’s hands and follow Amazon’s FBA guidelines.

Regarding shipping costs, in many cases, the products you sell are more impactful to profit margins than keeping shipping costs as low as possible – which is why it’s so important to choose the right products at step one.

With that said, shipping costs should be reasonable based on factors like delivery time and item weight.

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