This post originally appeared on the Celebrating Financial Freedom blog.
Selling Stuff on Amazon FBA is an amazing way to make extra money on the side. You can even earn a full time living as an Amazon seller if you want! Learning how to sell on Amazon using the Fulfilled By Amazon program is a very profitable way to start a business of your own without all the hassles associated with a brick and mortar business.
Best of all, you can be up and running in no time!
In this article I’ll show you all the details you need to start making money as an Amazon seller. You’ll learn:
Selling stuff on Amazon is a lot like starting your own online store. In fact, in a lot of ways it’s even better! It’s better because:
Basically, you set up your own online store on the Amazon platform and sell whatever you like.
Of course, you have to follow their rules since you’re using their platform. But that’s ok, the benefits far outweigh any hassles. They want you to succeed, because when you do well, so does Amazon!
There are a couple of different ways you can sell products on Amazon. The main difference between the two is who actually fulfills the order for the customer.
Fulfilled by Amazon is the most convenient (and most popular!) way to go. Amazon fulfillment services provide the manpower and storage for your inventory so you don’t have to.
You store your inventory at Amazon’s warehouses and when a customer places an order, Amazon ships the item for you. Using Amazon FBA has huge advantages:
Of course you’ll pay extra for this, but generally it’s worth it.
Merchant fulfilled means that you fill the orders yourself. That means you have to store your own inventory, handle the orders, and make sure the items get shipped on time. Of course, that’s more time consuming and not as scalable as using Amazon’s fulfillment services.
Why would you want to take the time to fill and ship orders (or hire staff to do it for you) when you can use that time more wisely to expand your business?
So how does the Fulfilled by Amazon program work? Well, in its simplest form, there are a couple of ways you can do it:
Below I’ll show you in more detail how to get started and cover some of the intricacies of setting things up. But before I do that, let’s talk about how and where to source your products.
Some Amazon shop owners buy closeouts and other heavily discounted items from retailers and resell them at regular price. Of course, you’ll need to spend a lot of time and effort to find and purchase these products.
You’ll typically need to get them at a 75% discount (or more) to make a profit reselling them. I’ve heard this technique called retail arbitrage.
One of the more popular ways to sell on Amazon is to buy products directly from manufacturers and resell them. Here’s how it works:
Believe it or not, you can also sell used items on Amazon. Whether it’s used clothing, electronics, or antiques, used items usually sell very well! You can find several sources for used merchandise:
It doesn’t really matter where you get your inventory, you can use the Fulfilled by Amazon service or Merchant Fulfill to move these items rather quickly.
If you’re an artist or crafter you can sell your wares on Handmade at Amazon. Think of it as an alternative to Etsy with a much bigger customer base. Your products will need to meet certain specs in order to sell on their platform, but it’s a good place to get your products into the marketplace.
Of course, to get stared you have to set up an Amazon Seller account. You’ll need to provide your standard information along with your bank info for automatic deposits. Once you sign up, you can start selling fairly quickly
Once you get signed up here’s what the process of selling looks like:
It’s pretty easy to find out if what you’re selling will be profitable before you start selling it. There’s a great app called Scoutify that can help you with that.
All you have to do is scan the barcode for each item you want to sell with your smartphone, then input your cost for that item.
Scoutify will display the product page for that item so you can see what price it’s selling for on Amazon. You’ll also see how many other sellers are selling that item, and calculate how much profit you’ll be able to make.
If the profits are small or nonexistent, you’ll do better finding something else to sell.
You don’t need much to get started. Most of these are things you probably already have. Here’s a short list:
As you advance and start building a bigger business you may need other tools to help your business run more efficiently.
You can make a modest side income with Amazon FBA. But if you want to put in more time and effort, the sky’s the limit!
There are thousands upon thousands of people who make their living selling on Amazon. You can even scale up to a seven figure business with the right amount of effort and a good mix of products!
I’ve said it before and I’ll say it again- this is the best time in the history of the world to start your own business! It has never been easier or cheaper to sell to literally billions of people across the world!
So if you’re looking for a good way to make some extra money or even a full time living, selling on Amazon FBA is a great way to do it!
to any newsletter and get a copy of our ebook Little Luxuries: 130 Ways to Live Better...For Less for FREE!