Looking For Q4 Fulfillment or FBA Prep?
Let's Chat ➝
Amazon FBA
October 13, 2021

How To Start An Amazon FBA Business Even With Little Money

Amazon is expanding fast and is consistently adding more and more sellers and customers. Many people want to get started with the Amazon FBA business but cannot take the step because of less money at their disposal. Less money should not be a concern because starting an Amazon FBA business by investing less than 1000 dollars is possible.

According to a survey conducted by Amazon in 2020, 1000 sellers added in that year started with $500 and below but could earn money. 38% of the sellers made $5000 and more each month, while 55% remained in the business for at least three years. Thus, it is possible to earn money through Amazon FBA business without spending much money.

The following points will guide those wondering how to start an Amazon FBA business with little money.

Selecting The Right Products 

Amazon sells 166 million products, but your small budget would enable only a limited number of products to market. Thus, you must select profitable products only. Tools like Jungle Scout and FBA Revenue Calculator helps in identifying those products which are likely to be beneficial. These tools give information about the average number of sales for any product each month. Check the Amazon Best Sellers Rank as well to know which product sells more than the other.

Both the monthly sales and the best seller ranking helps in determining the per-day sale of any product. A product that sells more than ten units a day is likely to bring more deals for you each day. Overall, the key is to select products that will bring in more revenue and avoid less selling products.

There are other considerations for selecting the right products:

  1. It would be best to look for products throughout the year because opting for seasonal products on a low budget is a risky proposition.

  1. Choosing fragile or breakable items is not recommended on a low budget because the risk is high. Thus, you need to select those products that can withstand rough handling and be transported without much trouble.

  1. To reduce shipping costs, smaller and lighter items should be selected.

Select from the Top Amazon Categories 2021

Create Free Amazon Seller Account 

Complete the registration process at the Amazon Seller Central. After that, you are given two options: a professional seller account and an individual seller account. Select a personal seller account because there is no monthly charge for this account, while a fee of $39.99 is charged for a professional seller account. 

Except in the case of a handmade product or a product which you have manufactured, you need to search for the product you want to sell through the existing product list of Amazon. All you need to do is type the product description or the UPC or ISBN of the product you want to sell in the search bar of the product's page on Amazon. After you find the product, click on the "Sell on Amazon" button. 

There is certain information about the product that needs to be given after you have clicked on the sell on Amazon button. They include the following.

  • Select New if you are selling a new product. If you are selling a used product, you need to describe the product as per Amazon's guidelines for the condition of used products.

  • You need to enter the number of copies of the product that you want to sell. If you have a single product, then you need to leave the field blank.

  • Amazon usually gives price suggestions which are the minimum rates as compared to other products in that category. Selecting the lowest price is recommended unless your product is in a much better condition than others.

  • You need to choose the type of fulfillment method. Fulfillment means the way the product is delivered to the customer. 

Use Amazon's Fulfillment by Amazon or FBA Program

Under the FBA program, Amazon stores your product and ships it as soon as a sale is made. Using this program to ship your product is recommended because shipping by this method is cheaper than shipping on your own. Still, the level of efficiency of packing and shipping by Amazon is more than what you can achieve. All you need to do is deliver the product to the fulfillment center of Amazon. 

Thus, at the time of product listing, choose Amazon FBA instead of Amazon Fulfilment by Merchant.

Understand Amazon Fees 

Amazon charges two types of fees only in the event of a sale. This means you can start selling on Amazon without shelling out money. The two kinds of fees are Referral Fees and Individual Per Product Fees. 

Referral Fees are the 15% commission on the sale price charged by Amazon for each sale. Individual Per Product Fees of $0.99 are set on the sale of each item by professional sellers dealing in various categories of products. 

Next article: Top Funding Options For Amazon FBA Businesses