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How to start an Amazon FBA business with little money? Legit Ways

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  • Post last modified:February 3, 2022

How to start an Amazon FBA business with little or no money?

Earning money online has become a trend for today’s generation. It’s a fact that online earning has a lot of scopes if you have the right knowledge and skill.

Most e-commerce businesses are tending to enhance their revenues and profit margins through the Amazon FBA platform.

Amazon is a popular name among the consumers for online shopping and hence businesses are leveraging it to grow big.

It is already a massive marketplace and becoming bigger as online shopping is becoming the latest buzz across people for anything they need.

Statistics are telling that more than 50% of US consumers rely on Amazon dropshipping for all kinds of online shopping.

FBA stands for fulfillment by Amazon which is a great platform that you can use for selling your products and making money online.

You just require sending the products directly to the warehouses of Amazon and then everything is managed by Amazon once you get an order.

Not only it sounds simple, but also it is a lot simpler than you think. Doing it properly can help you to earn thousands of dollars in the long run.

We know that one doubt is arising in your mind regarding how much to start Amazon FBA business or ‘Can I start Amazon FBA with no money?’

Don’t worry; we will be discussing all these along with other important things that will help you to make money online with Amazon FBA business.

Let’s first rollover through the basics of the Amazon FBA business!

What is Amazon FBA?

As mentioned earlier, FBA is the short form for Fulfillment by Amazon.

From the name, you can understand that Amazon is responsible for fulfilling all the requirements that are needed for selling your products to customers.

Amazon FBA

FBA is a service that serves as a kind of storage and shipping platform enabling businesses or individual sellers to sell their products.

The only task you need to do is to send your products to the FBA designed centers of Amazon where they are stored.

Once your products are ordered through Amazon by the users, packaging, and delivery is taken care of by Amazon along with the after-sales services like returns, refunds, and support.

Selling your products on Amazon can easily increase your sales because the products are now in the hands of a popular e-commerce platform. This is what the Amazon FBA platform means.

Why should you choose Amazon FBA to sell your products?

You have got the flexibility and convenience that Amazon FBA offers from the above discussion.

But, if you still have any confusion, let’s look at the various benefits that you will get through Amazon FBA.

Amazon FBA
  • Fulfillments of your orders: It’s in the name of this platform and also the procedure means the same.
  • All the fulfillment processes of your orders are managed by Amazon beginning from picking your products in the warehouses to the post-sales services.
  • Without the FBA platform, all these processes can be hectic while managing on your own.
  • No need for a warehouse: Amazon FBA platform already provides you with warehouses where you need to send your products. This cuts down your expenses of a warehouse which ultimately will increase the profit margin by decreasing the liabilities related to expenses for buying or renting a warehouse.
  • Worldwide reach: Expanding an independent business is tough and requires a lot of time or money. FBA can help you with that since Amazon is already a stable business and has a worldwide reach.
  • Shipping costs: Shipping your products on your own will result in spending a lot of money on delivery which will result in lower profits. FBA offers a prime delivery service that has made delivery of your products a lot easier and at a lesser cost.

Hope you have got that starting an Amazon FBA business comes with multiple benefits.

Can I start Amazon FBA with no money? | Business Plan –

The plain and simple answer to the question ‘How much to start with Amazon FBA business?’ is little or no money at all.

Let’s go a bit deeper to understand the business plan that you can start with no money.

Amazon FBA

1st step: If you are skilled in manufacturing some kind of handmade products, then you can choose them to sell on Amazon.

Even if you are not, collect some unused items lying around your home. Yes! You can list them on Amazon too.

2nd Step: Once you decide the products you want to sell on Amazon, you need to open a seller account now.

Signing up as an Amazon seller is completely free of cost, you need to fill in some information, and then you are ready to go.

3rd step: Now, listing your product on Amazon is the next step. But you may find some products that are already listed.

In that case, you can add your name to the seller list of that product. After that, just wait for getting an order of your product.

4th step: On getting the order, you need to deliver your product to the Amazon warehouse.

This is the step that you may feel is a bit difficult than the above steps. But, with Amazon FBA, it is also simple.

So, this simple business plan with Amazon FBA can help you start making money online that can even help you to earn some thousands of dollars in the future.

How to start an Amazon FBA business from home?

Seller account creation –

Making money online from home is a lot easier with Amazon FBA. Firstly, you need to create an Amazon seller account.

Simply search Google for reaching to the Amazon seller page and follow the instructions provided there to register yourself.

For better results, we advise you to create a professional account to get the advantage of the marketing tools.

You just need to fill in some basic information for creating a seller account on Amazon. The major things that you will need include a credit card, contact number, company registration details, information about the beneficial owner, and bank account information.

Isn’t it easy! Even if you face any difficulties, contact support for getting all your doubts cleared.

Gather your products to sell –

After setting yourself as an Amazon seller, listing your products is the next concern. If you don’t have your products ready, then think about the products that you want to sell.

After deciding about the product category, you need to find a place from where you can get those products easily.

The world’s largest B2B marketplace, Alibaba can help you in this case.

You can invest as little as possible if you want like $100 to buy small quantities of any product. Sell them on Amazon and make some profit to start with.

So, you have become an Amazon seller and also ordered the products from a marketplace. Hence your starting signal has turned yellow by now from red.

For making it green, you need to list it on Amazon for users to see your products.

Amazon FBA

Product Listing –

In this step, you have your products ready with you and now need to list them on Amazon. Head over to the seller dashboard and click on ‘Add a Product’ from the ‘Inventory’ menu.

Then navigate to the link called ‘Create a new product listing.’ Following that, you need to select the category of products you are listing on Amazon.

This will take you to the product listing wizard where you need to fill in the details about the product like item title, manufacturer ID, and others.

Once complete, click on the Save and Finish button which will complete the process of listing.

However, your listing is not live till now because your products are not present in the Amazon fulfillment centers physically.

Shipping to Amazon warehouses –

The last and final step is to create a shipment for the product to reach the warehouses. For doing that, you need to again head over to your seller dashboard and select ‘Manage FBA shipments’ under the ‘Inventory’ menu.

On the next page, you need to fill out the details about the delivery package for creating a new shipment. Make sure to measure the box dimensions that you are planning to ship to Amazon.

After completing this step, you are ready for delivering your package to the Amazon warehouses.

Now, the shipment is also done. So, you need to wait for the confirmation email from Amazon stating that your product has been received by them.

How much to start Amazon FBA business?

From the overall discussion, it may feel that earning a profit can never be free and so you may be thinking that whether it’s possible to start with no money in the pocket.

The truth is that you only need money to buy the products that you want to sell.

For listing and selling through Amazon, there are no extra charges that you need to pay. Hence, you can start an Amazon FBA business with no money but you will always need to invest in buying the products.

Once they are sold, you will get your invested capital and profit, so logically no money is involved.

Please note that you will be charged some fees by Amazon once your products are sold. There are two types of fees involved –

Referral Fee – This is the fee that Amazon charges you by taking a 15% commission of the selling price of your products.

Individual Per Product Fee – For the professional sellers who sell product categories, Amazon charges around $1 for each item they sell.

These fees are charged after the products are sold, hence practically, you can easily begin an Amazon FBA business without any money except the buying cost of the products.

Tips and Tricks to launch products on Amazon –

For getting profits, your products must sell once they are live on Amazon. Hence, it is important to have a tough strategy for launching.

Here are some tips to establish a stronger strategy.

Amazon FBA
  • Try to always keep your products in stock because a deficit of products will lower traffic which ultimately will bring down the sales.
  • You must use strong keywords and proper SEO-friendly images to catch more visitors. Using correct keywords will help customers to get access to your listings easily.
  • Also, focus on the customer success metrics which help to measure the performance of the listed products and interaction of customers.
  • Keep the pricing of the products lower than other sellers on Amazon but also in such a way that you will earn some profits.
  • During festive seasons, offer some discounts or prizes along with your products. This will help to attract more visitors.

Please keep in mind all these points since there are hundreds of sellers on Amazon and to stay in the field, you need to focus on these factors.

That can help you to earn more sales and increase your conversion rate.

Frequently Asked Questions

How can an Amazon FBA business benefit me in making money online?

Amazon FBA offers multifold benefits to put some extra money in your pocket. In fact, it’s an easy way to make money without the need to provide any sort of fees initially. However, some fees are deducted by Amazon once your product is sold. For knowing the various advantages in detail, please refer to the advantages section above.

Is Amazon FBA safe?

Amazon is the most popular e-commerce platform across the world. Hence, you can blindly rely on any kinds of services that Amazon offers. Many small e-commerce businesses are also leveraging the Amazon FBA to enhance their sales and profits.

Do I require money for starting an Amazon FBA business?

There is no money that Amazon takes from you for being an Amazon seller or listing your products. Thus, you need some money to buy the products that you want to sell and Amazon takes some commissions on the selling price which implies after those products are sold.

Final Thoughts…

We hope that you have liked this article and found it interesting.

This article has possibly cleared the doubts that were playing in your mind regarding the Amazon FBA business.

Amazon FBA is a great platform to make money online and people are earning thousands of dollars through it.

Several small e-commerce businesses have also started enjoying its advantages and increasing their revenues or profits.

No matter whether you are a student or an office worker, you can always start an Amazon FBA business online to get some extra income.

It’s a fact that competition is high to get your products sold through Amazon FBA for which you need to continuously upgrade yourself with the required knowledge.

Also, you need to analyze other sellers and the price they are offering for similar products.

Experience matters a lot in this field, so you will learn by experience and also by making mistakes.

Thanks, learn to earn!