How does Amazon FBA work?

The concept of Amazon FBA essentially boils down to: you sell it, and Amazon will ship it. Being a member of Amazon FBA network gives you access to their Prime users and advanced shipping fulfilment services.

You send your products to Amazon.

2. They store your products in their fulfilment centres.

3. Once your inventory reaches them, you can monitor its movement through their tracking system.

4. The hassle of picking and packing is taken care of by Amazon.

5. Amazon would pick up your product and ship it as per the convenience of customers. They can then track their order.

6. The significant effort that goes in customer service and managing returns is also taken care of by Amazon.

Sounds too good to be true, right? It probably is, because Amazon does take a fair share of the profits for all their services. Is it worth the money? Well, that is a subjective answer, but from my experience, I believe it is.

Initially, you might hesitate to put in investments to get started with. However, the exposure and the quality of potential customers Amazon has collected through the years, guarantees a good ROI, even if not the quickest.

It always helps if you have a helping hand in such tedious processes. Try searching for Amazon FBA wholesale alternatives, from where you could buy products catered especially for Amazon and see how that works out for you.

Here is how Amazon FBA works Ship your products to Amazon and Amazon receives them on your behalf and when a customer makes an order,you get paid after approximately 2 weeks.

Now that you see how Amazon FBA works,now the question is “How do I Sell on Amazon?” and here I go in details a little bit answering this question:

Every successful seller often listens to one common question “how do you sell on Amazon?” from newbies or potential Amazon sellers. People want to know their success secrets while clearing their doubts and misconceptions.

Without any doubt, selling on Amazon can be a rewarding experience for anyone. You have to understand the policies and strategies to become a successful seller. Amazon offers two types of seller account a professional seller account and an individual account.

The professional account allows you to access more features than an individual plan, but you have to pay $39.99/month fee. After selecting a plan, you have to create your seller account and type accurate information in required spaces.

How do You Sell on Amazon?

Can I immediately start making money via Amazon FBA?

No, don’t quit your job – YET! But you can realistically plan to quit in 6 months or less. Now is the time to start building your business and cash flow.

Having said that – I think you have some confusion on what Amazon FBA is. It is NOT drop-shipping. With Amazon FBA, you must purchase your inventory up-front, and send it in to Amazon’s warehouses for storage. Then, when you make a sale, they will handle all fulfillment and shipping to the customer.

With drop-shipping, you never see the products or purchase them until AFTER the customer purchases from you. Once you receive their payment, you buy the item from your supplier and have them ship it directly to the customer.

If you want to build an Amazon business, here is a brief overview from my Amazon FBA page on getting started with FBA:

How Do I Get Started?

There are a number of ways to get started with Amazon FBA. The most popular methods are below, with a $ rating of how much capital you need to get started ($ = low capital; $$$$ = high capital):

  1. Garage sales/Items around your house/Thrift stores ($), where you try to find the “diamonds in the rough” to buy for pennies and then sell on Amazon.
  2. Retail/Online Arbitrage ($-$$), where you buy an item on clearance from one store and then sell it for a higher price on Amazon
  3. Wholesale ($$-$$$), where you negotiate with manufacturers to buy larger quantities of products and sell them on Amazon
  4. Private Label ($$$-$$$$), where you work with a factory to produce a custom product and put your branding on it. Then advertise, build up your brand, and sell the products on Amazon or anywhere else.

At this point in my Amazon FBA business, I am incorporating the Arbitrage, Wholesale, and Private Label methods. However, I got started with – and I recommend anyone who is brand new should start with – the “Find items around your house to sell” method. For starters, this method requires absolutely ZERO up-front inventory costs, since you are selling things you already own. In addition, it’s a great, low barrier-to-entry way of getting familiar with the Amazon Seller dashboard and mobile app.

There are a TON of helpful guides and videos on how to do any or all of these strategies, if you just search on Google or Youtube. You can also check out the Resources page on my site for some quick links to helpful sites and guides.

So keep your job – for now – but get started building up your Amazon business! Once you get started and start re-investing your profits, you’ll be surprised how quickly you can start generating a consistent monthly income.

Best of luck to you!