Do you want to be in business but do not have a lot of investing money? It is okay.
We will be giving you ways to start your business without spending a hefty amount. Starting a new business can be daunting but not expensive. This article will give you insights into understanding how to start a business with little money. Moreover, we will provide some tips and strategies for starting your own business on a budget.
Thinking of ways to start an Amazon FBA business with little money? I will encourage you to read this article. You will come to know about:
- What is Amazon FBA? Does Amazon FBA cost money?
- Four Easy Steps to Sell on Amazon for Free
- What do you require for Amazon FBA?
- Is Amazon FBA a Good Idea?
- The Final Word
What is Amazon FBA?
FBA which stands for Fulfilment by Amazon is a service that allows you to sell your products on the platforms of Amazon while Amazon takes care of the logistics of fulfillment, including picking, packing, and shipping your goods from their fulfillment centers to the customers.
For your day-to-day business operations, you have to just pay small fees to Amazon and they will handle all the logistical aspects of your business. This will allow you to focus your energy on upgrading your business, particularly letting your brand grow.
You will get the benefits of prime shipping, customer trust, and customer trust and multichannel fulfillment. Amazon FBA model works like this:
- The inventory of goods is shared by a seller to Amazon Fulfillment Centre.
- Amazon receives the products, sorts them, and then stores them.
- The customer puts an order for your product.
- After the order is placed, Amazon picks it, packs it then ships it to the customer.
- Customer service is taken care of by Amazon, including the return policy.
Does Amazon FBA cost money?
If you are, fulfilling orders using FBA you are going to pay a variety of fees. A referral fee, which is typically 15%, is a requirement whether you use FBA or FBM. The amount of FBA is based on the size and weight of your product. The size whether standard or oversized is considered. You can also calculate the fees for your products; use Amazon’s free FBA Calculator to get a breakdown of your costs for both FBM and FBA.
In fact, in a survey of over 4,000 Amazon sellers, Jungle Scout discovered that sellers who started with less cash found success in the end. 12 % of sellers started selling on Amazon for $500 or less. 27% of sellers started selling on Amazon with $1000 or less
Also read: How to Make Passive Income on Amazon?
Four Easy Steps to Sell on Amazon for Free
There is a small fee for Amazon FBA but you can still get started selling on Amazon for free, all it takes is four simple steps:
- Find a free product to sell. If you have a bunch of stuff lying around in your house. Why not sell it on Amazon?
- Create a free Amazon account. Creating an individual seller account on Amazon costs you absolutely nothing. All you need is to give Amazon a little information and you are good to go.
- List your product on Amazon for free. Amazon.com’s product database has more than 300 million products. Chances are good that whatever you hope to sell is already listed. If it is, all you will have to do is add your name to the list of sellers already offering the product.
- Ship the product when it sells. Once you make the sale on Amazon, all you have to do is ship the product to the end user.
What do you require for Amazon FBA?
A mindset or more specifically entrepreneurial mindset is necessary for Amazon FBA. An entrepreneur views needs problems and challenges as opportunities. His mind is innovative in dealing with these challenges and problems. He knows that his business creates value and he has a visionary mindset.
2. Product Selection
It is all about finding the right product to sell on Amazon. The most important and daunting task in the Amazon FBA business is to find a product to sell. To do this you might need to take the service of some Amazon service tools. With the help of these tools, you will be able to know statistics like the number of units being sold each month, the average price of competitors in the category, the average number of reviews, revenue generated, etc.
This information can be used to make your product better visible and suggestible. For instance, rather than picking a random product, you should focus on picking a specific product that you could expand on. A good example of this would be a Yoga brand selling Yoga mats, as well as Yoga blocks, towels, and various apparel.
You can also sell your product in the fastest way. Simply go to Amazon just as you would if you were shopping.
1. Find the product’s page on Amazon. Type and search for the product you wish to sell. You can describe it or type the UPC in the case of the books, ISBN. Scroll through the search times and find the exact product that you hope to list.
2. Click the ‘Sell on Amazon’ button or add a product to Seller Central
Once you find your product, on the right side of the screen just below the product’s Buy Box, you will see a button that reads ‘Sell on Amazon.’
Sometimes it can be difficult to sell on Amazon and what you need to be successful is not clear to you. You might need to collaborate with for instance another agency, particularly a marketing agency. This might cost you some money from your profits. However, the profits will for sure rise.
Besides, you will be able to save time and money while growing your sales on Amazon and other marketplaces, so they can focus on other important aspects of running their business.
4. Amazon Seller Central
Amazon Seller Central allows you to perform a wide range of important tasks. You can know metric insights using tools and track the performance of the products you are selling. You can also keep track of your inventory and listings. There is another option of contacting Amazon seller support for help with issues such as account suspension, and beyond. It is a comprehensive, one-stop-shop portal with a large number of functions.
Amazon Seller Central account can be assessed through your mobile phone or computer. You can log in whenever you want and can use the tools of Amazon Seller Central fully.
Is Amazon FBA a Good Idea?
Of course, it is. However, if you still require rational evidence, let us go through some statistics.
You should know that 63% of consumers look for their products on Amazon in comparison to other e-commerce portals. As for the sellers, 65% of the third-party sellers report earning profits that range between 10% to 32%.
Half of the sellers on Amazon sell from $1000 to $25000 per month. 13 % sell their products in the range of $25,000-$250,000 per month. 22 % of sellers sell under $500 per month.
Moreover, you also get 24/7 customer service. You can also use the services of the Amazon FBA platform to care for your customer service needs. Routing all of your services through one platform for easy management is a quality that makes Amazon FBA a better option.
At last, you should know that Amazon is a competitive marketplace, no matter what product or service you plan to sell. The opportunities present for new start-up entrepreneurs are hard to pass up. Especially for small e-commerce businesses, taking advantage of an already established fulfillment program and infrastructure as well as resources like Amazon Seller Central can make the most challenging half of the process worth it in the end.
The Final Word
Once it is, clear to you what Amazon FBA is, as well as the knowledge about the costs it takes and requirements, it will be quite easier for you to make a decision. You should however also search for the pros and cons of Amazon FBA and can find the alternatives. If you are further interested, you can learn more about that in our blog Amazon FBA vs Dropshipping.
Besides Amazon is competitive. It requires a good amount of time and money to start selling your product. Time in terms of marketing and projecting your goods, and money as a fee. You also require continuous learning, perseverance, and hard work. Nevertheless, if you ask me is it worth it? Ultimately, that answer is up to you, but we say yes.
Generally, if you ask us there are far more advantages to selling on Amazon than disadvantages. You should also know that not every seller who launches a product on Amazon will be successful. However, if you put in the work, constantly improve, and learn from your mistakes, you will be able to Amazon FBA business with Little Money.
I along with my team help small businesses with all kinds of Digital Marketing Services.
Contact us today!
Looking for Kashmir Exclusives? Then head to Kashmirica where we curate products straight from the valley of Kashmir.
Read other blogs:
- What is Amazon KDP? The Complete Guide
- The Ultimate Guide to Sell on Amazon in Canada
- What Is An Amazon Brand Store?
- How Can You Sell Used Items on Amazon?
- Selling on Walmart vs Selling on Amazon
- How To Start Amazon Dropshipping in Canada?
- How To Use Amazon Attribution To Boost Sales?
- Amazon FBA or Dropshipping: Which one is Right for You?
- Selling Clothes on Amazon: Essentials
Mir is a British-educated Digital Marketing Expert with 10+ years of experience in the B2B, D2C, and eCommerce Industries. Having worked with 50+ startups and SMEs, he has a clear understanding of what it takes to establish growth on online platforms.
He is also the Founder of Kashmirica, a social impact brand that aims to take exclusives from Kashmir to the Global consumer. An enthusiastic cultural entrepreneur, Mir is driven by a passion to bring about a social impact.
An avid reader, he loves writing about marketing, and entrepreneurship.