How to start Amazon FBA with little money? It may seem impossible, but it’s not. When investing little to no capital, you can get your Amazon FBA business with creativity and dedication. In this article, we’ll discuss how to make it happen.
So if you’re ready to plunge into Amazon success with small to no investment, let’s get started!
Is There Still Money on Amazon FBA?
Amazon Prime’s membership has seen exponential growth to over 150 million individuals globally and a $100 billion yearly surge in income.
This is your opportunity to join the many Amazon sellers who have successfully scaled their Amazon business and cash in on these millions of new buyers investing billions more into this platform.
Therefore, Amazon FBA is still very profitable for many third-party sellers. As long as you offer quality products at competitive prices, customers will always take advantage of your services and products on Amazon FBA.
How To Start Amazon Business With No Money
The simple answer is yes, and there are only four easy steps:
- Find free products to sell: Go through your house and find those items that are gathering dust, then list them on Amazon for free. Someone out there is looking for exactly what you’re offering.
- Create a free Amazon account: Registering an individual seller profile on the platform requires nothing but some basic information, and you’ll be set to start your Amazon business without delay.
- Create a listing on Amazon for free: Their database offers many choices, likely containing whatever you’re trying to sell. If that’s the case, simply add yourself to the list of existing vendors and reap all the benefits this platform offers without cost or hassle. With over 300 million products in their catalog, cashing in on this opportunity could be incredibly lucrative!
- Ship the product: Once a purchase is made on Amazon, all you need to do is pack, print the shipping label, and ship the product to its new owner.
Now let’s dive into these four steps in detail.
How to Find Free Products to Sell on Amazon
Finding a free product to sell at Amazon can be a great way to start your online business with no money or no overhead costs. To get started, here are some creative strategies you can use to do product research that doesn’t require an upfront investment (or only require a little) but will make money online:
Utilize Free Samples & Promotional Offers
Companies offer samples and promotional offers all the time, and it’s possible to take advantage of them to start selling products on Amazon without spending any money. Amazon sellers can find samples and other promotions through networking events, industry newsletters, manufacturers’ websites, and direct mail campaigns.
Take Advantage of Clearance Sales & Liquidations
Retailers often have clearance sales or liquidations that sell items at drastically reduced prices to clear out their inventory. By taking advantage of these promotional offers, an Amazon FBA seller can access free products and resell them on Amazon for a profit.
Ask Manufacturers for Free Products
Many manufacturers are open to offering free profitable products in exchange for reviews or publicity. If you have contacts within the industry (or are willing to reach out cold), it’s worth asking them if they have any excess stock they’d be willing to give in exchange for a review or shout-out on social media.
Recycle & Resell Used Products
The internet is full of used products for sale at discounted prices – from books and electronics to furniture and clothes. By purchasing these used items and reselling them in your Amazon store, you may be able to profit without investing too much money upfront.
Check Out Wholesale Clubs & Discount Stores
Shopping at wholesale clubs and discount stores like Costco or Walmart can also be a great way to find products at lower prices than elsewhere. Plus, shopping around allows sellers to take advantage of specials that pop up from time to time which could save them money while still giving them access to quality products they can sell on Amazon.
By taking advantage of these creative strategies, entrepreneurs looking at how to start selling on Amazon with no money can find excellent opportunities for building their businesses – one deal at a time!
How to Know If Your Product Will Sell on Amazon
Determining if a product will make money online is essential to setting up and running a successful FBA business.
Many success stories on Amazon started with thorough product and market research.
By researching the market, understanding how to use keyword research tools, and having an eye for trends, you can ensure that your products are well-positioned for success.
With the right approach, you can determine if your product has potential before investing any money or effort.
Consider the Product’s Best Sellers Rank (BSR)
When selling on Amazon amidst the e-commerce boom, one of the most critical steps to consider is to check the product’s Best Sellers Rank (BSR). BSR drastically affects your item’s visibility and, therefore, its potential sales.
Knowing the success metrics such as BSR can help sellers decide whether they should consider Fulfilment by Amazon (FBA) fees to maximize their Amazon sales. Gaining access and capitalizing effectively on BSR can be a game changer for any business that runs through Amazon.
Analyze your target customer base
What type of people would be interested in purchasing this item? What age groups and genders may be looking for this type of product? Knowing this information can help you tailor your product listing to capture the attention of potential buyers better.
Review customer feedback on similar products
It will give you insight into what customers like or don’t like about existing products and how you might be able to answer their needs with a new solution or improve upon what’s already out there.
Utilize tools such as Jungle Scout or Helium 10
These tools can provide valuable data points such as estimated monthly revenue for specific items and relevant keyword lists, which can help inform your product description strategy and ensure that customers find it when searching online.
Monitor pricing trends over time
Ensure your margins remain profitable while offering competitive prices compared to other sellers in your niche market.
How to Create A Free Amazon Seller Account
One of the first steps is creating an Amazon account to start one’s Amazon business. It will give you access to all the features and tools necessary for setting up your store on the platform, such as product sourcing, marketing campaigns, fulfillment method, and more.
Here are the easy steps to follow:
1. To create a free Amazon Seller account to start selling, visit the Amazon Services website and click on ‘Sell’ in the top menu bar. It will bring you to a page with more information about how to start selling on Amazon and open an account.
2. Click ‘Sign up Now’ on the same page to create your free Amazon Individual Seller account.
3. Enter all your personal information, such as name, email address, and phone number, into the required fields and select how you want to receive notifications from Amazon (such as email or text).
4. Next, agree to Amazon’s terms of service and conditions of use by checking off the box next to each one.
5. Once you have accepted all terms and conditions, click ‘Create Account,’ which will take you to a page where you can add additional business information.
6. After accurately entering this information, click ‘Continue,’ which will take you through verifying your identity by uploading valid identification documents such as a driver’s license or passport.
7. The last step is to fill out your payment options, including credit or debit cards, so that when customers pay for their purchases in your store, they can do so quickly and securely using these payment methods.
8. Your free Amazon Seller account has been created once you successfully completed these steps! You are ready to start selling products on the world’s largest e-commerce platform with little or no upfront cost.
How To List A Product For Free On Amazon
Without a doubt, Amazon has the largest selection of products available for purchase – virtually anything you can imagine.
Listing it on Amazon is simple unless you offer a unique product, such as handmade or a private label. Then, all that’s required of you is to find the current product listing. Otherwise, no extra steps need to be taken.
The easiest way to get your desired product or service is quickly heading to Amazon like a buyer.
Find the product’s page on Amazon
To find the product you want to sell, simply type its name in the search bar. You can also input its UPC or ISBN if it’s a book. Once your query is entered, scroll through the options provided until you locate your desired item and list it easily!
Click the ‘Sell on Amazon’ button or add a product in Seller Central
Locate your desired product, and just beneath the Buy Box on the right side of your screen, you’ll see a button labeled ‘Sell on Amazon.
You can swiftly copy the product’s ASIN and paste it into Seller Central instantly under “Add Products” to get started.
Enter your product’s information
After you press the button, Amazon will ask for your product’s details, including:
- New or used: If you’re selling a brand new item, it is undoubtedly listed as New. However, if the product has been used before, use Amazon’s condition guidelines to accurately identify its quality.
- Selling price: To remain competitive, it’s best if your product is listed at the lowest price possible. Fortunately, Amazon will usually provide a recommendation on how to adjust your pricing so that you are always beating out the competition.
- Stock: Enter how much stock of this product you have available for purchase.
- Fulfillment method: How exactly will it be delivered to the customer: FBA (fulfilled by Amazon) or FBM (fulfilled by Merchant)?
After that, click ‘Save and Finish.’ Usually, your product appears on the product’s listing page within two hours.
How To Fulfill The Order For Your Amazon Business
As mentioned above, there are mainly two different fulfillment methods:
- FBA (fulfilled by Amazon)
- FBM (fulfilled by Merchant)
Fulfilled by Amazon
If you choose to fulfill your order by Amazon, you must ship your products to one of the Amazon fulfillment centers. Once a customer places an order in your store, Amazon fulfillment centers will pack and ship your product to the customer promptly.
Therefore, you must pay to ship your products to the Amazon warehouse beforehand, which will incur monthly storage fees.
However, since Amazon collaborates closely with mainstream delivery companies, the shipping cost might be saved.
If you have your warehouse, storing the products in yours and shipping the products to the customers directly is a great idea to reduce any extra cost.
This method will help save money if you sell oversized products that will incur huge costs if stored in Amazon fulfillment centers.
Does it Cost to Fulfill the Orders
And although you can’t really “ship for free” with Amazon, there are several things you can do to keep costs down.
Here are a few tips:
- Use the packing materials you already have: Take advantage of existing boxes (for instance, Amazon boxes!) and their accompanying product packagings, like air pillows, peanuts, or shredded paper. However, ensure all labels have been removed from the boxes and are in excellent condition before reusing them.
- Sell lightweight and small products: With USPS Media Mail, you can save a bundle on shipping costs for small products, such as books and media. For instance, you could ship a book weighing less than one pound for approximately $3.00, which is an unbeatable deal.
How To Start Amazon FBA With No Money
However, while it may be possible to start an Amazon business without spending money, the reality is that if you plan to start an Amazon FBA business, there are still associated expenses that you will need to consider when budgeting for your venture.
Here are the relevant Amazon’s fees:
- Selling Plan Fee: If you are an Amazon FBA seller under the professional plan, then a flat monthly fee of $39.99 awaits; however, an individual seller does not need to pay any subscription fee upfront – just a mere $0.99 for each product sold. The professional amazon account, however, comes with more selling features and privileges.
- FBA Fees: Additional fees will apply if you utilize Amazon’s fulfillment services. These may include storage and shipping costs incurred by Amazon for the package to reach its destination.
- Customer Returns Fees: A return fee will be incurred if a customer returns an item.
- Referral Fees: A referral fee will be charged for each item sold, depending on the category. The fee is usually around 15%.
Dropshipping: How To Sell On Amazon Without Inventory
Dropshipping is an increasingly popular business model that allows entrepreneurs to start their own retail business without carrying any inventory or dedicating expensive storage space.
With dropshipping, Amazon sellers can create an online store and product listings and partner with a third-party supplier who will store, package, and ship products on their behalf.
Dropshipping eliminates the need for sellers to purchase items in bulk and worry about how they will store them, which can be a major cost-saver for their Amazon business.
Starting an Amazon business with no money can be daunting, but it is possible. With the proper research and analysis of leveraging existing resources, you can craft a successful product launch strategy that will help drive sales and increase your bottom line.
However, if you decide to become an Amazon FBA seller, which means you must ship your products to one of the Amazon fulfillment centers, then it is a must to make an upfront investment. It is more convenient to let Amazon handle the packing, shipping, and customer service for you, and it can ensure faster delivery. Therefore, this investment might be worthwhile.
Frequently Asked Questions
Q: Is it free to start Amazon FBA?
A: Starting with Amazon, FBA is an attractive option for many online retailers thanks to its fulfillment services and global reach. It is free to register with Amazon FBA. However, you should consider fulfillment fees. Shipping costs depend on the size and weight of packages shipped, and warehouse storage fees may apply if you store your inventory in fulfillment centers for long periods. Any additional fees or charges should also be factored in, so research these upfront before beginning your venture.
Q: How much do beginners make on Amazon FBA?
A: It is difficult to say how much money beginners make on Amazon FBA as everyone’s situation is different, and success depends on how much effort you put into it.
Q: Do you need an LLC to start an Amazon FBA business?
A: No, an LLC is not required to start an Amazon FBA business. However, an LLC can provide legal and financial protection for your business. Plus, it can help create a professional brand image and simplify taxes.
Q: Do you have to pay monthly for Amazon FBA?
A: No, you do not have to pay a monthly fee for Amazon FBA. However, you should consider several payments when budgeting for Amazon FBA. These fees include buying, shipping, storage, and other costs associated with selling on Amazon. It would help to research each of these before launching an Amazon FBA business.