This is a step by step guide on how to start a FBA business with very little money. An online business with Amazon FBA is a great way to make money on the internet.
If you want to earn more passive income by selling products on Amazon then you will want to read this article.
Is It Possible To Start An Amazon Fba With A Small Amount Of Money And What Is Amazon FBA?
Yes! You Certainly can start an Amazon FBA with as little as $500. To be successful with this you need to be willing to initially put in the hard work to get you started.
FBA stands for fulfilment by Amazon, this means that Amazon does a lot of the hard work for you. With this online business Amazon will store your products in their warehouses and fulfil orders for you.
In addition to this, Amazon will also take care of the shipping and handling of your items to minimise hassle, leaving more time for you to concentrate on the more important personalised aspects of your online business.
It goes without saying that if you are able to stretch your budget a bit, or are able to start with a higher amount of money, this will allow you to grow your business more quickly.
However, this does not mean that starting with a smaller budget means you won't be able to start your business at all.
There are 3 different business models on Amazon FBA these are;
If you are hoping to create a long term, sustainable business this is a good option for you. This method does involve more upfront investment that the other business models however can return high profits in the long run.
This method also involves a little more time investment due to the fact you will need to conduct Amazon product research, then you must find a manufacturer to produce your goods and wrap them in your specific brand name.
On the other hand, retail arbitrage is a great choice if you have less money to start your Amazon FBA with. This method involves very little upfront costs.
For this method, you will be looking for products sold on Amazon at a discount. This route does offer less security and many have found it difficult to constantly grow their business and make a stable income from this.
If you're looking for a more passive source of income where you do not have the time to work on this day to day then this is the best route for you.
In addition, for this method you will need to have a larger sum of money to invest upfront if you want a long term sustainable business.
Step By Step Guide To Start An Amazon Fba Business With Little Money
1. Conduct Your Research And Consolidate Your Fba Business Model
Firstly, you will need to decide on the business model that works best for you and your situation. For example, if you have less money to invest upfront retail arbitrage would most likely be the best option for you.
2. Research And Choose Profitable Products To Sell
The key to location profitable products is to find your niche area. By doing this, you will find your products sell well. After deciding on the product you want to sell you then need to source your products.
If you are choosing the retail arbitrage model, you can find products pretty much anywhere. Whether this be, in store, online, charity stores or clearance sections are a popular choice for retail arbitrage.
However, if you're using the wholesale or private labelling model you will need to find a manufacturer to do this. Alibbs is a popular option for this.
3. Create Your Amazon Seller Account
Creating your Amazon seller account is pretty simple. On this account you will be able to list your products for sale and keep track of your orders.
If you are planning to sell more than 40 items per month then you will need to create a professional account, if not then you have the choice to set up an individual account.
To set this account up all you will need to do is click on " create new seller account" and follow the step by step guide.
4. Set Up Your Shipping And Fulfilment
This is how you will ship your products to your customers. For this step Amazon offers two options, FBA and SFP.
The FBA option is the best if you have a smaller budget and have less time on your hands. Amazon will pack and ship your items as well as handling all returns for you.
The only downside to this is you will have to pay a monthly fee to use this service, although this still likely works out cheaper than SFP if your business is not consistently generating profit this monthly subscription fee may seem a waste of money.
In addition to this, storage fees from amazon will also apply.
If you are wanting to start an amazon FBA business but you have little funds in the bank to do so, retail arbitrage is the best model for you. This model requires little initial investment.
Choosing a niche market is another way to keep costs down as well using Amazon's FBA service to fulfil your orders. This saves money on shipping and storage costs opposed to other models.
Private labelling is a higher risk model and users should possibly wait to give this model a try until they have more capital and experience in the field.
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