How To Start A Successful Amazon FBA Business

Amazon is a globally popular website known for selling various products. Some of these products that Amazon sells are labeled as Amazon FBA or “Fulfillment By Amazon”. You will see this on the bottom part of the product’s description.

When a product is classified as an Amazon FBA, it means that they are doing most of the work after an order is placed on that particular item. Amazon picks the order from the warehouse and delivers it to the customer. This means that they also sort out the stocks of the sellers, which is advantageous since the only thing that the’ll be doing is put the products on Amazon’s website, and wait to receive the payment.

Here are ways on how to start a successful Amazon FBA Business:

Search for freight forwarding companies to deliver your products.

When you decide to sell on Amazon, the most usual scenario is that you order the items in bulk or wholesale price. Most of these manufacturers might come from countries that are far from where you are, such as China.

However, technology makes it easy for you to purchase your products from the manufacturers in bulk without going to the warehouse yourself. Hence, it is crucial that you search and contact global forwarders first so that you can get the best price possible, and you can be sure that your products can be shipped from your manufacturer to the Amazon FBA warehouse.

It operates in this manner:

  • You must first choose a reliable forwarding company
  • The manufacturing company delivers the products to your chosen global forwarding company
  • The forwarding company delivers your products to the Amazon FBA warehouse

Create an Amazon account

You cannot become a seller on Amazon without a seller’s account. Here are the steps on how you can create one:

  • Visit the Amazon website
  • Scroll down to the bottom of the website and select “Make Money With Us”
  • Click “Sells on Amazon”
  • Follow the on-screen instructions on making your account.

Choose the products that you will sell as FBA Amazon

The products that you will sell can be classified as one that you either made from scratch or one that is an improvement on someone else’s product. When you decide to create your product from scratch, or if you have your invention, it is best if you ask a company to manufacture your products professionally so that it will have better quality and more marketability.

Part of creating your products also include the following steps:

  • Negotiating with the manufacturer
  • Prototyping your designs
  • Taking professional photos of your items

If you decide to rebrand or to reinvent an existing product, the most important thing that you should remember is to attach your brand name to it. If you can see that the old version has not been selling well, when you try to reinvent it, create a better version. Rebranding still tops today’s list of easiest and quickest ways to start a business.

Keep the following metrics in mind

Amazon provides metrics that you should always keep into consideration. It is advised that you check your metrics at least quarterly. These include the following:

Product offerings
You should make it a goal to increase your product offerings from time to time. Avoid being a stagnant seller on Amazon. Do introduce a new product at least once a month.

Best Sellers Rank
The Best Sellers Rank on Amazon is a metrics system that buyers look into when purchasing a product. When you make it to this list, your market base will increase and will also be steadier.

Do market research on Amazon

When you are looking to be an Amazon FBA seller, and you are quite unsure as to what products to sell, take time to do market research. This market research will show you what products are constantly in demand on Amazon. By doing this, you will also have an idea as to how much you should price your items, and how much you can earn from them.

There are many applications and websites which provide market research services, such as Jungle Scout and Unicorn Smasher.

Price your products

Pricing your items not just involves putting your mark-up. There are a lot of costs that you should factor in, too. For starters, to get a good estimate of how much you should sell your items, go back to Amazon and search for similar products to see how much other sellers are pricing similar items.

Some of the costs that you will have to include are the following:

  • Shipping expense
  • Manufacturing expense
  • Labor
  • Mark-up
  • Taxes and customs fees
  • Delivery charges

Have a business plan and feasibility study

You should treat your Amazon FBA business seriously, just like you would with any other company. Be serious about it, and put in a lot of hard work. Even if it is an online business, a business plan is still necessary.

Your business plan will show you the following:

  • Your vision and mission as a company
  • Your goals and strategies on how to meet these goals
  • Your strengths and possible weaknesses or competition
  • Your opportunities for growth.

Experts in the Amazon FBA business industry recommend that you should go back to your business plan regularly to see if you are on the right track as a company.

On the other hand, a feasibility study is also essential. Your feasibility study is different from your business plan, such that it will show you if your Amazon FBA business is a marketable and profitable idea. It should show a projection of what your business will look like in the next five (5) years.

It is also from this feasibility study that you can have an overall idea as to when your return on investment will be.


All these steps will help you get a head start on starting your own successful Amazon FBA business. When you get to think of it, this is a great source of a passive income opportunity. The best part of this business is that you can sell your products globally, wherever you may be; you do not need to be close to the Amazon website.


1. What is an Amazon FBA Business?

An Amazon FBA (Fulfillment by Amazon) business is a type of e-commerce business where a business partner (the seller) uses Amazon FBA’s order fulfillment services to store their products, list and sell products in their Amazon store and ship orders to customers. Amazon handles the fulfillment, including inventory management, order fulfillment, customer service and returns. By using Amazon FBA as the fulfillment method, sellers are able to focus on growing their store and expanding their product line. Furthermore, by leveraging Amazon’s fulfillment network, sellers can often offer very competitive shipping rates to their customers.

2. What are the benefits of an Amazon FBA business?

An Amazon FBA business offers the potential for rapid growth and scalability with the added security of a trusted, established brand. By leveraging Amazon’s expansive fulfillment network and established customer base, an Amazon FBA business is able to rapidly expand its online offerings, providing customers with quick and easy access to products. Additionally, by using FBA, a business can reduce their investment in fulfillment and shipping, enabling them to focus on marketing, product development and customer service.

3. What are the main steps in starting an Amazon FBA business?

Starting an Amazon FBA business is a multi-faceted process that involves researching and sourcing products, establishing a business entity, registering for necessary permits and licenses, building an Amazon store and listing your products, understanding Amazon’s fees and requirements, and setting up a shipping account. There are also certain mentorship or consulting services available to help you get started.

4. What is the most important thing to consider when starting an Amazon FBA business?

The most important thing to consider before launching an Amazon FBA business is the product selection process. This includes research and due diligence in selecting a product that is likely to be successful, identifying a potential profit margin, and choosing a target demographic. Additionally, careful consideration should be given to where to source the products, especially if working with suppliers who have potential quality control issues.

5. What other necessary considerations do I need to take into account when starting an Amazon FBA business?

Other necessary considerations when launching an Amazon FBA business include developing an advertising and promotion strategy, understanding Amazon’s terms and conditions, pricing your products competitively, and offering customer-friendly policies such as free return shipping and fast delivery times. Additionally, understanding the taxation implications for your business, setting up accounting and bookkeeping processes, and adhering to Amazon’s requirements for labelling and packaging can be invaluable to a successful e-commerce business.

6. How do I master the Amazon FBA business and guarantee success?

There is no guaranteed formula for Amazon FBA success. However, it is possible to master the process and increase your chances of successfully launching and running an Amazon FBA business. Firstly, it is important to conduct thorough research into the product that you are planning to sell, as well as understanding Amazon’s fees and requirements. Additionally, obtaining an understanding of the e-commerce market, researching customer buying trends and creating a detailed business plan can all help to increase the chances of success.

7. Is automation important for a successful Amazon FBA business?

Automation is an important tool that can help an Amazon FBA business achieve success. Automation allows a business to manage different aspects of the selling process more efficiently, such as inventory management, order fulfillment, customer service, and customer follow-up. Additionally, automation can help a business to save time, meet customer expectations and reduce human error.

8. What other support services is available for an Amazon FBA business?

There are a number of third-party services available to Amazon FBA sellers, such as account management, product research and sourcing, order fulfillment and shipping, professional photography, marketing and advertising, accounting and legal services. Additionally, many Amazon FBA businesses also use Amazon-specific services such as Amazon Seller Central, Amazon Marketplace Web Service, and FBA Calculator, to assist in the management of their business.

9. How can I establish my presence in the Amazon FBA market?

Building presence in the Amazon FBA market requires having a comprehensive understanding of Amazon’s rules, policies and fees, as well as leveraging tools and services that are specifically tailored to the Amazon FBA ecosystem. Utilizing opportunities such as Marketplace analytics, customer reviews and feedback, product optimization and leveraging Amazon advertising are all important elements of creating presence in the Amazon FBA market. Additionally, creating a unique and differentiated product offering with a great user experience can be invaluable in consumers’ decision to choose your product.

10. What can I do to ensure that I remain competitive in the Amazon FBA market?

To remain competitive in the Amazon FBA market, Amazon FBA businesses must focus on continuously improving their product offering, customer experience and customer service. Additionally, leveraging opportunities such as product optimization, data analysis, product content and customer feedback can help businesses to drive more sales, increase visibility and build brand loyalty. Furthermore, regularly researching and understanding competitors’ prices, fee structures, and customer service policies can be invaluable in helping Amazon FBA businesses stay ahead of the competition.

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