How to Sell on Amazon FBA for Beginners: Focusing on Physical Products

Selling on Amazon offers a great opportunity to start an online business, whether you plan to dropship, resell, or launch your own brand. No matter which sales model you choose, having a well-prepared strategy is essential for success. By planning ahead, you can avoid common pitfalls and fully leverage Amazon’s benefits, including its massive customer base, powerful seller tools, and built-in credibility.

This guide will walk you through everything you need to know, from choosing what to sell to scaling your business effectively.

How to Start Selling on Amazon

To make the selling process easier, it’s important to understand the steps involved so you can be better prepared. Here’s a simple guide on how to sell on Amazon for beginners:

Step 1: Choose Your Seller Plan and Business Model

If you want to start to sell on Amazon, there are a few key things to consider. Here’s a quick overview:
Seller Plan
You need to choose the plan that suits your needs: Individual ($0.99/sale) or Professional ($39.99/month). The Professional plan offers more features, such as running discount campaigns, which are not available with the Individual plan. However, if you're just starting out, the Individual plan is a great choice, and you can eventually upgrade to the Professional plan as your sales grow.
Business Model
Next, decide which business model you want to employ, as this will affect your sourcing as well as your overall strategy. Here's a brief breakdown of the most common options:
  • Private label: Build your own brand by selling products under your label. This requires a larger investment and greater marketing effort, but it can be more profitable in the long run.
  • Wholesale: Buy products in bulk from manufacturers or distributors and sell them for a profit. You get lower prices per item, but the bulk orders can be expensive.
  • Retail/Online arbitrage: Purchase discounted products from retail or online stores and resell them for a profit. This is cost-effective, but scaling this type of business can also be challenging.
  • Dropshipping: Sell products without holding inventory. You only make a purchase from a supplier after making a sale, but you lose control over shipping times and product quality.
Each model has its own pros and cons, so it’s important to choose one that aligns with your goals, budget, and available resources.

Step 2: Set Up Your Amazon Seller Account

If you want to become an Amazon seller, you need to set up your account. This process is simple and requires just three steps:
  1. Create an account on Amazon’s website.
  2. Enter your personal and business details, and upload images of your ID and credit card for verification.
  3. To complete the verification process, you’ll have a video call with Amazon to confirm your documents.
After successful verification, your account will be activated, allowing you to begin listing products for sale in your store.

Step 3: Find Profitable Products to Sell

In order to make money on Amazon, it’s important to choose a product that not only sells well but also yields a solid profit. While the ideal product can vary from seller to seller, there are a few universal key factors to consider:
  • Strong demand: Aim for products that consistently generate at least 200 sales/month.
  • Healthy profit margins: A minimum margin of 20% ensures long-term profitability.
  • Manageable competition: A niche that’s too crowded can make it harder for your product to stand out.
Conducting effective product research is essential, and leveraging analytical tools can save you time while providing reliable data. In the next section, we’ll highlight some of the best tools you can use for smarter product research.
Overview of the Best Product Research Tools
Here’s an overview of three the most popular tools for Amazon sellers, each offering distinct advantages and some trade-offs:
  • Jungle Scout is a popular tool for identifying profitable products and niches, offering precise sales data. The services are tailored for private label sellers, helping them to streamline their product research.
  • AMZScout leverages AI-driven insights to help sellers quickly assess product viability and competition. It offers essential features that are useful for all types of sellers while remaining affordable and easy to use.
  • Helium 10 is a powerhouse resource with over 30 available tools designed to help sellers track market trends, analyze products, and optimize PPC campaigns using AI. It’s ideal for those seeking deep analytics of their business performance.
  • SellerApp offers global reach and allows sellers to search for profitable products across 16 Amazon marketplaces in different countries. It also provides valuable free tools, like the Product Description Editor.
Choosing the right tool depends on your specific needs and budget. Many of these platforms offer free trials, so you can explore which one fits your business best.

Step 4: List Your Products

Listing products on Amazon depends on whether the item already exists on the platform. If it does, you can simply join an existing listing by following these steps:
  1. In Amazon Seller Central, go to "Catalog" and select "Add a Product."
  2. Search for the item by entering its ASIN or name.
  3. Enter product details, including condition (new products or used items), pricing, and quantity.
  4. Once you save your changes, your offer will be added to the existing listing.
If your product doesn’t appear on Amazon yet (such as one from your own brand), you’ll need to create a new listing. The process is similar, but you’ll need to add all of the necessary information from scratch (photos, description, title, etc.).

A new listing must be SEO-optimized to rank well and attract customers. We’ll cover that in the next section.

Step 5: Choose Your Fulfillment Method

When listing a product, sellers also need to choose a fulfillment method. The two main options are FBM and FBA.
  • With FBM (meaning Fulfilled by Merchant), sellers handle storage, packing, and shipping independently. While this offers control and cost savings, it also brings logistical challenges, and products miss out on Prime benefits.
  • With FBA (which stands for Fulfilled by Amazon), sellers send their products to Amazon, and Amazon manages fulfillment. Although this method involves fees, utilizing FBA also increases your visibility, improves your chances of winning the Buy Box, and enables you to take advantage of Prime shipping—making it the preferred choice for many sellers.
Choosing the right fulfillment method is crucial, and Amazon FBA often stands out for its efficiency and sales potential.

Step 6: Optimize Listings for Success

When creating a new Amazon listing from scratch, sellers need to optimize the listing in order to rank higher among search results when customers look for relevant terms. This involves refining several key components:
  • Visuals: Use high-quality images from multiple angles and, if possible, include a video. Leverage A+ Content to enhance your listing.
  • Title: Make it compelling and engaging to encourage clicks.
  • Bullet points: Highlight key features clearly and incorporate relevant keywords.
  • Description: Address why customers should buy your product while integrating efficient keywords naturally.
  • Backend keywords: Add hidden search terms to help improve discoverability.
Keywords play a crucial role in a listing’s success. A thorough analysis is essential to identify the most relevant and high-performing keywords, which should be seamlessly incorporated into the text for both SEO and readability.

Note: Amazon sellers can benefit from utilizing specialized tools. For instance, Jungle Scout is known for offering in-depth keyword research, while AMZScout provides an AI-powered tool that generates SEO-optimized listings in seconds.

By optimizing your listing for Amazon’s algorithm, you can drive more traffic to your store, boost visibility, and ultimately increase profits.

Step 7: Scale Your Business

Growing your business is key to increasing revenue and reaching more customers on Amazon. Here are some effective strategies to help you scale your business efficiently:
  • Leverage PPC advertising: Running targeted Pay-per-Click (PPC) campaigns can boost product visibility, drive sales, and improve your rankings on Amazon.
  • Expand your product line: Adding new items or related variations to your catalog allows you to attract a wider audience and increase your sales opportunities.
  • Create product bundles: Offering complementary products together can enhance perceived value and increase average order value.
  • Run promotions and discounts: Deals can help drive conversions and attract more buyers to your listings. However, you also need to strike the right balance between competitive prices and profitability.
  • Sell across multiple channels: Expanding your sales beyond Amazon (through your own website, social media, or other marketplaces) helps to diversify your income streams and reduces dependency on a single platform.
A well-rounded growth strategy will strengthen your presence in the e-commerce world. Track performance, analyze results, and refine your approach continuously to ensure long-term success.

Conclusion

The Amazon marketplace is constantly evolving with shifting trends and customer preferences, making it crucial for sellers to stay ahead. Leveraging analytical tools can help to streamline your efforts, uncover valuable insights, and save time. By continuously refining your strategy based on market data and informed decisions, you’ll maximize your profits and scale your business efficiently.
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