Amazon FBA is considered a golden goose opportunity for business enthusiasts who are looking to enter into the online business world. It might sound crazy if someone tells you that you can start an Amazon FBA business with less than $1,000 investment. You might consider a lot of factors of buying and outsourcing products from suppliers or manufacturers, creating a brand, registering for a tax contract, developing a marketing and advertising strategy, and much more.
As stated by Wyatt Investment Research article, over 40,000 Amazon FBA business operators have successfully become millionaires. The number is increasing rapidly. We have made a comprehensive guide to help you better understand how can you start an Amazon FBA business with low money.
How do Amazon FBA works?
FBA stands for “Fulfillment by Amazon”, and the sellers who opt for Amazon FBA will get the following benefits:
- Amazon will receive and hold the inventory on your behalf
- Your shipments will be prepared and handled by the company
- Whenever you receive an order, Amazon FBA will send it to the customers
- Amazon FBA will also handle returns
Amazon has a chain of centers and an army of staff to handle all these functions efficiently. The products from many different brands are consolidated in a single place. Thus, the customers can shop products from Reebok, Nike, Adidas, etc., from a single place.
Benefits of Amazon
Except for product handling and shipment services offered by Amazon FBA, you will get to reap the benefits of this amazing marketplace.
- Instant access to an already built customer base
- Convenient tools for product listings
- Leveraging Amazon’s stature to sell more products
By choosing Amazon FBA as a business plan, you will be saving a lot of money needed to generally launch a business. You won’t need to worry about creating a customer base. All you need to do to run a successful Amazon business is choosing the right product and developing a robust marketing strategy.
Buyers often become shaky and encounter skepticism while purchasing from private eCommerce sites. Contrary to this, if a customer likes your product on Amazon, he/she can refer to a stockpile of customer reviews and can run through the host of questions before clicking the “Buy” button. Isn’t it amazing?
Prerequisites of starting an Amazon FBA business
Being a new seller, you might want to know how can you break into the Amazon marketplace to get the most out of it. To help you out, we have made a list of the things that you need in order to start an Amazon FBA business.
- Documents needed to create and verify Amazon FBA seller account
- Developing a clear and elaborated strategy
- Choosing and sourcing a winning product
- Determining and allocating a budget for advertising and other purposes
- Robust marketing and growth plan
Before choosing the product, ordering the inventory, and stepping into the Amazon marketplace, it is important that you should take into account the pros and cons of operating in the marketplace. It is important to have a clear strategy that will help you achieve your goals. After that, you will be able to set your priorities and goals to drive decisions based on the data beforehand.
The most important question that an Amazon FBA seller should ask is whether you aim for super-fast growth or looking for a profitable way to earn as much revenue as possible. Being an entrepreneur, the budget can be your major concern. If you have a large budget, then you might not hesitate to invest in multiple SKUs without being worried about the returns.
Contrary to this, if you are a new Amazon FBA seller with restricted capital, you should choose the product wisely. Be mindful that the product should not only fall into your budget but you should also have enough money left to spend on advertisement and marketing.
Key factors to take into account while starting Amazon FBA business on a budget
Though it is simple to find profitable and low-cost products that will bring in more revenues for you, the process can be a bit daunting. Here is a list of the most profitable ideas that every Amazon FBA seller should know before starting the business.
- Validate market demand to know if there are enough people willing to buy your product or not.
- You should always choose a niche where the competition isn’t too fierce.
- Ensure that you are choosing the best supplier or manufacturer for the product sourcing whose prices fall in your budget.
- Try to analyze that the product which you are choosing is good enough to get profits.
- Offer something that your competitors are not providing to the customer to attract them. In short, find a way to get a competitive advantage over your counterparts.
Most efficient and inexpensive ways to advertise your Amazon FBA business
Do you know what makes the Amazon marketplace so powerful? The Amazon seller central account comes with different advertising tools. You should opt for low-budget and highly efficient ways to market your business to make higher profits.
Here is what an Amazon FBA seller should do in order to do inexpensive marketing on the marketplace:
- Offer a superior product to earn the trust of customers
- Look for and target the right keywords
- Create an attractive product title and description
- Build converting Amazon product listing
It becomes much easier to set up advertisement campaigns through your seller central account. It is important to look for ways to differentiate your products from that of your competitors. Besides, choosing a product that has the potential for higher profit and has less competition works the best.
You should conduct rigorous market research and competitive analysis to choose the right keywords. This will help you in attracting shoppers who are searching for similar products. Though finding high-converting keywords is daunting, but it can prove to be a deal-breaker.
Last but not the least, an Amazon FBA seller will want to curate a product listing that has a high conversion rate. So, you will rest assured of getting at least 1 person on your product page every 50 people visiting Amazon in search of the product.
Amazon FBA Business is not a get-rich-quick scheme
As we have already discussed how lucrative the market is, setting up a new store to earn a profit is a time-consuming thing. Being an Amazon FBA seller, you will get to save a lot of money needed to set up your eCommerce website.
Considering all these benefits that Amazon FBA offer, you might think that it is some sort of get-rich-quick scheme. However, it is important to accept the fact that an Amazon business cannot get you instant profits unless you have hired a team of professionals to manage the account.
For this purpose, you can take help from different Amazon Gurus who have been in the business for years and know the nitty-gritty of the marketplace. You don’t necessarily rely on them to succeed, as we have seen a plethora of entrepreneurs making a good amount from Amazon business. All you need is dedication, persistence, and hard work.
No one can deny the fact that there is no way to avoid the start-up hustle; you can reach out to limitless resources and support to get success. No matter if you need help in setting up the store, creating your product listing, advertising, SEO, A+ content, or other services, you can always reach out to experts to get the best of both worlds.
Aim high: The sky should be the limit for you
As of now, you might have convinced to start your own Amazon FBA store, but stepping into the marketplace without doing the homework can do more harm than good.
There is a list of reasons to get started on Amazon, like no dependence on location, ability to be creative, instant access to a huge customer base, massive growth potential, and the pride of business ownership are just a few. There will be hardly anything that you won’t get from this incredible marketplace. You name it, and Amazon will have it for you.
However, there is one additional business that no one thinks of while starting the business. The potential of selling your successful and running business once it reaches a specific success level.
Both entrepreneurs and investors have realized the fact that Amazon’s business is actually a great opportunity to earn profit manifolds. This can be a piece of great news for Amazon FBA sellers who have built a strong and successful Amazon FBA business.
Nowadays, you can easily look for thriving marketplaces that connect investors with Amazon account buyers. Apart from this, once you have done the hard work and your account is running successfully, you can enjoy the passive income of thousands of dollars while doing nothing. In the meantime, you can set up another account to elevate your earnings. In short, after getting into the Amazon business, the sky should be the limit.