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How to Start an Amazon FBA Business

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Fulfillment is one of the most challenging aspects of running an e-commerce business. It’s a lot of dirty work, involving obtaining supplies, storing inventory, packaging orders, shipping products, and dealing with after-sales concerns. This is where fulfillment by Amazon (FBA) comes in as a solution. 

FBA is a service that lets you outsource these key parts of the selling process to the e-commerce giant. Starting an Amazon FBA business is easy, and you don’t have to be a big-time brand to get into the program. You just create an Amazon selling account, set up FBA, and ship your items to an Amazon fulfillment center. Once everything’s set up, customers can purchase your products and Amazon will fulfill the orders. 

Although it seems like a recipe for success in itself, you’ll also have to pull your weight to ensure that your FBA business is an optimized operation that augments your sales. A great way to do this is to hire Amazon FBA consultants on Guru to give you expert advice on improving your e-commerce business and help you manage your account!

What Is Amazon FBA?

Fulfillment by Amazon (FBA) is a service offered by Amazon that lets sellers outsource their fulfillment processes. Amazon provides storage, packaging, and shipping, so when a customer orders your product, they can pick it out from their inventory, pack it, and send it to the buyer. Amazon also handles any returns or exchanges, along with any customer service concerns.

How Much Does Amazon FBA Cost?

How much does it cost to start using Amazon FBA? It ultimately depends on your business. For starters, however, you must pay to subscribe to one of Amazon’s selling plans, either the Individual Plan ($0.99 per sale) or the Professional Plan ($39.99 monthly). 

It’s recommended that you start with at least $500 in seed money (or ideally, $1,000), and you may expect to spend an average of $3,000 to $4,000 as a seller. The expenses (which include multiple fees that come with the service) seem steep, but if you optimize your FBA business properly with the guidance of consultants from Guru, you’ll be getting way more in return.

How to Start an Amazon FBA Business

Setting up an Amazon FBA business is pretty straightforward, though it’s recommended to have a solid strategy before you get into the program. Here’s how to start an Amazon FBA business:

Set Up FBA

Before anything else, create an Amazon selling account. To do this, you’ll need your:

  • Business email address or Amazon customer account
  • Credit card (internationally chargeable)
  • Government ID
  • Tax information
  • Phone number
  • Bank account (where Amazon can send you your proceeds)

You’ll get access to Seller Central, the platform in which Amazon sellers can manage their business. Here, you can set up your FBA business.

List Your Inventory

Add products to your Amazon catalog, making sure to specify them in your FBA inventory. Then, design your brand’s storefront. Make sure that your products are something that you can source and sell.

Ship Your Items to Amazon

Talk to your supplier and make arrangements to have your products shipped to an Amazon fulfillment center. Here, Amazon will store your inventory (for a fee) until customers order it; this is also where all orders are processed. Don’t worry about the security of your products. Amazon makes it a point to safeguard all FBA sellers’ items (they’ll even refund you if something happens to them!).

What Happens Next? 

What happens after you start your FBA business? Amazon takes care of the next steps. When a customer orders your product on Amazon, the company processes the transaction—they take your item, pack it into a box, and ship it to the buyer. Amazon also manages all communications surrounding this process, from shipping notifications to tracking to returns.

Can You Really Make Money on Amazon FBA?

There is plenty of money to be made on Amazon FBA, even despite all the fees associated with it. In fact, 70%  of Amazon sellers make over $1,000 monthly, and 25% of them even earn more than $25,000 each month. 

That said, becoming successful in your FBA business requires a lot of strategic planning. Amazon FBA consultants can help you form a plan that will guarantee sustainable and profitable results.

Start an Amazon FBA Business With Help From Consultants on Guru

Guru, one of the top freelance online marketplaces, is home to hundreds of Amazon FBA consultants who are ready to bring your FBA business to greater heights. In just a few steps, you can hire one today to get advice on best practices for the platform!

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