Sellers with Amazon FBA can make up to $810,000 annually! But you’re smart, you know that most likely you’re not going to hit that number, especially not straight out of the gate.
But get this, 58% of people who signed up with Amazon FBA were profitable in their first year.
So if you like spotting a good deal, thrift shopping, and making money with a low energy side hustle, joining Amazon FBA might be the right call for you.
We’re here to help you get started.
What Is Amazon FBA?
Amazon FBA stands for fulfilled by Amazon. You send Amazon products you want to sell, and Amazon puts those products on their website.
This has a handful of amazing benefits, like putting your products directly before the millions of people who already use and trust Amazon.
On top of that, you don’t have to store, manage, or ship any of your products – Amazon handles all of that.
All you have to do is provide stuff to sell, keep track of your inventory through their app, and ship it to Amazon. Amazon does the rest.
How Does Amazon FBA Work?
With Amazon FBA, you send them products to sell. While it’s on the shelf, Amazon stores it for you in their warehouse. When the product sells, they package it, ship it out, and you get paid. You can see their complete intro video here.
How Much Does Amazon FBA Cost?
As with any platform, there are costs associated with operating a business, and Amazon FBA fees do still apply. After all, they’re providing you with a pretty valuable service.
Mostly, you have to pay their monthly service fee of $39.99 a month, plus storage for anything Amazon is holding on to for you. Storage fees 45 cents to $1.35 per unit.
Amazon makes it easy for you to track your expenses, and they’ll help you dispose of any inventory that isn’t making its way out the door.
How Much Can I Make With Amazon FBA?
If you want to start an Amazon FBA business or side hustle, obviously you want to know how much you can make.
It might take you a couple of months to get the hang of things, so don’t expect to be profitable straight out of the gate.
But if you’re patient and persistent, Amazon FBA can help you turn a nice profit. Even new Amazon FBA members can make an extra $26,000.
Mitchell Stern, Founder of SideHustle.Tips, agrees that Amazon FBA stores are some of the most lucrative online businesses in existence today. “Don’t take my word for it, just go to any online digital asset exchange and see for yourself. All of the most profitable stores all have one thing in common, says Stern “They all follow the Amazon FBA model.”
If you’re ready to get started, we have an entire blog dedicated to helping you list your first item in only four steps.
How Can I Become an Amazon FBA Seller?
To become an Amazon FBA seller, you have to sign up here. It’s a relatively simple process of filling out basic information like your name and tax id.
Once you’re enrolled, you have to list your products. These can be things you hand-make, or retail arbitrage, or any other thing you can sell on Amazon.
How Much Time Will This Take?
As with any business venture, the amount of time and effort you put forth will depend on how much you make.
So how much time it takes to make money on Amazon is hard to say. If you’re selling popular items, it’s easy to turn around and flip them. But if you specialize in a less popular niche industry it may take some time.
If you already love thrifting for a good steal or hand creating your own products, Amazon FBA becomes an easy extension for you to rake in the gold.
What Are the Best Products to Sell on Amazon FBA?
The best products to sell on Amazon FBA include books, baby clothes, jewelry, electronics (and their accessories), and workout gear. But you can make a profit selling nearly anything.
When you’re looking for products to add to your Amazon FBA, check to see if they’re already for sale online, whether or not you could make money at the buying price, and whether or not they’re selling.
The Best Amazon FBA Tips and Tricks
Getting started on Amazon isn’t too tricky. These tips can help.
Stay organized. A lot is going in and out and you don’t want to waste valuable money just by holding onto something in your Amazon warehouse inventory that isn’t selling.
It’s also vital you keep good bookkeeping records. This will make it easier come tax time, and easier to track what products make you the most money.
Do some research. Some products won’t sell at all – that is until you identify the specific long-tail keyword it takes to get it noticed. Then it’s off the shelf in a matter of days.
Before you list any product, make sure you’re using the right name and the right keywords, and you’re listing for a good, competitive price. Remember, keeping items in the warehouse just costs money, so give your product every chance you can to get seen.
Make sure you’re following the law. Major corporations don’t like seeing others sell their products at a profit (retail arbitrage) so they’re lobbying hard for restrictions. If you’re practicing retail arbitrage, make sure you know the laws.
And finally, never stop learning. There will always be a new way you can make more with Amazon FBA, so don’t let these opportunities slip through the cracks.
Joining Amazon FBA Can Be a Great Way to Earn Extra Income
The amount of success you find with Amazon FBA will depend a lot on the amount of effort you want to put forth when it comes to finding and listing products.
But the fees are reasonable and it doesn’t take too much effort to break even, or even make a profit. If you’re looking for a fun way to add a side hustle into your day, sign up for Amazon FBA.
Want to learn exactly what it takes to run a profitable e-commerce business? Get our book today.