Easiest Way To Start Amazon FBA From Scratch! (Exactly what i did)
Here is the blog article:
# How to Start Selling on Amazon FBA From Scratch
Trying to start an Amazon FBA business can feel overwhelming, with so many steps and methods to learn. It's tough to know where to begin! In this guide, I will share my exact method for starting to sell on Amazon from scratch. Using this approach, I built a six-figure Amazon store in under a year without marketing or even creating my own product.
If I were starting today, this is precisely what I would do.
## Proving the Method: A Six-Figure Store Example
Let's start with some proof. I built a store that generated £105,000 in total sales from January 2021 to January 2022. The profit margin was around 30%, equating to approximately £30,000 (or around $40,000). I am showing you this to demonstrate that this method works and is worth your time.
## The Four Pillars of a Successful Amazon FBA Business
There are four key components to building a successful Amazon FBA business:
1. Your Product
2. Your Analysis
3. Your Supplier
4. Scaling Your Business
I'll break each of these down as simply as possible.
## 1. Finding the Right Product: Your Foundation for Success
Without good products, it's nearly impossible to succeed on Amazon FBA. Thankfully, thousands of new products are added to Amazon every day, so opportunities always exist.
When looking for a product, remember these three main types:
* **Arbitrage Products:** These are items you can buy from a local store (like a supermarket) and resell on Amazon for a profit. For example, I could buy a Yankee Candle for £6.50 and resell it on Amazon for £14.50. After taxes, I could make around £2.50 profit. Selling it 100 times a month would net £250 profit.
* **Wholesale Products:** Here's an example: a product sells for £1.69, but the price drops to £1.62 if you buy more than six. You could then sell a pack of six on Amazon for £11.95. There's significant profit potential here.
* **Private Label Products:** This involves finding a product on a site like Alibaba, putting your logo on it, and selling it. For example, a product sold for £14.99 might cost you around $1 on Alibaba. The profit margins are attractive. However, creating your own product requires marketing, adding costs. This is why wholesale and arbitrage are often better – you don't have to create a listing or market the product.
I've found success with arbitrage and wholesale by using existing listings from other sellers and instantly starting to make money selling the same product.
## Product Category Considerations
When doing Amazon arbitrage or wholesale, you don't need to overthink product categories. Every category on Amazon has sales potential. Don't limit yourself to a specific niche and miss out on opportunities in other niches. The goal is to have more products so you can make more money.
## Profit Margins: Aim for at Least 30% ROI
I consider a good profit margin to be at least 30% more than what you spent. In simple terms, aim for a 30% return on your investment (ROI). You can calculate the ROI using a standard ROI calculator.
For example, if I spend £5 on a product, I want at least a 30% return on that £5, which would be £5 (initial investment) + £1.50 (30% of £5) = £7.50 in total.
## Avoiding Private Label Products
A simple way to ensure a product isn't private label is to look for something called a "buy box". A buy box is when there are multiple sellers on the product. A listing with seven new sellers means that other sellers are selling that exact product.
## Where to Find Products
The easiest way to find these products is by visiting the clearance section of your local supermarket's website. Search the product's name on Amazon, and if you can make a profit, buy and sell it. You can also explore wholesalers and see if you can find profitable products to resell on Amazon.
Keep in mind that product research can be time-consuming.
## 2. Product Analysis: Is Your Product a Winner?
Doing product analysis is super important. You'll encounter many good-looking products, but analysis will reveal that they don't sell.
When I find a product on Amazon, the first thing I look at is the BSR (Best Sellers Rank). You can find this in the product information. A good BSR is usually under 100,000. The lower the BSR, the more the product is selling.
The second thing to look for is something lightweight. On Amazon, the heavier the product, the more fees you'll be charged, and your delivery costs increase. Aim for products weighing less than two pounds. This is an ideal weight where your fees won't be too high, and your profit margins will be better.
The last analysis you need to do is to make sure the product is not seasonal. Seasonal products are products like a christmas tree, and sell mostly around certain holidays.
You can figure out whether it's a seasonal product or not by looking at it or by using Google Trends. Enter the product's keyword and analyze the graph. If there's a trend, you'll know the product is primarily searched for during a specific period.
There are many software options to help you with product analysis, but I recommend starting with manual analysis to learn the process.
## 3. Finding a Reliable Supplier
Once you've found a good product, find a good supplier to make sales every day.
Reliability should be a key consideration. Reliable suppliers deliver goods on time and as described. Larger suppliers are often reliable because they have the resources and systems in place to ensure delivery. However, you can develop a closer relationship with a smaller supplier, especially if you're a primary customer. Smaller suppliers may respond better to rush orders or holding stock.
The best way to find your supplier is simply by searching online. Google the product name and take your time to find the best supplier. It's better to speak to your suppliers through a call rather than always emailing them.
## 4. Scaling Your Business
Most sellers on Amazon reach a few thousand pounds a month and then find it difficult to scale because they're a one-person army. This is where you can delegate. Figure out what's taking most of your time. Start by delegating all your packing for the products to be sent to Amazon. The time you save can be spent doing more product research and other administrative tasks. This way, you can find more products, increase profit, and scale your business.
Recycle your money by not taking anything out and using that same money to buy more products and make more sales. This helps keep growing your balance and account.
Find a mentor who's already done this to get help from them and simply learn from their failures and start scaling much more faster.
This is my exact method on how to start your Amazon FBA journey from scratch and how I made six figures in less than one year.