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How To Start Small Business On Amazon

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How To Start An Amazon Business With $500 Or Less

How To Start An Amazon FBA Business (The ULTIMATE Step By Step Guide For Beginners)

Sometimes it may seem that starting an Amazon FBA business can be a huge investment of time and money. In reality, it can be relatively inexpensive to start! In fact, many new FBA sellers start their businesses with as little as $500 or less!

Todays episode is all about starting an Amazon FBA business with a budget of $500 or less. We discuss where to buy inventory, how to spend your $500, as well as the tools, apps, and add-ons you need to start as an Amazon FBA seller and much more.

When you start out with the business mindset, youre going to take the time and effort to put toward your business. – Amy Feierman


This weeks on Amazon Files:

  • Pro account vs. individual seller
  • Basic needs to be met, like supplies, and shipping boxes
  • Giving yourself the platform you need
  • Where to find inventory to sell
  • Getting used to the process
  • Tips on what to look for when product sourcing
  • How to identify possible quick turnarounds
  • Important item prep info

Jumpstart Your Amazon Business Today!Are you ready to jumpstart your Amazon business but dont know how? We can guide you step by step through easy-to-understand video instructions for your Amazon business must-haves. Weve got everything you need in one place — from setting up your Amazon account to shipping your items to Amazon fulfillment centers. Go to .


Dont forget to check out our website for even more resources.

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Making Your Amazon Business Profitable

Disadvantages aside, theres no question that with the right strategy an Amazon business can be a huge revenue stream. According to a 2018 survey, 40% of Amazon sellers made over $250,000 in yearly revenue. Bear in mind, however, that this figure does not state the average profit these businesses made, which is revenue minus the amount the seller invested. Still, thats a sizeable percentage making a lot of money.

What else can you do to make your Amazon business profitable?

Building An Fba Business

If your test run goes well and you decide to build an FBA business, youll need to develop a source of inventory. There are several ways to find products to sell:

  • Retail arbitrage. Essentially, arbitrage is buying low and selling high. Search local stores or online for clearance and discounts items. The trick to making money in FBA is to buy products on sale so that you can sell them for a profit. The challenge is finding cheap enough products that can be sold for a profit after your fees.
  • Wholesalers. In this case, you buy items from a wholesaler and sell them as a reseller.
  • Thrift shops. Note that FBA isnt about selling used items. Your items should be new and in good condition. So if youre visiting thrift and second-hand shops, your goal is to find items in their packages or with tagsunused and of good quality.
  • When buying items, find ways to earn money or rewards for even bigger savings. For example, many successful FBA business owners use cash-back websites when they shop for FBA items to sell to earn discounts and cash back. Consider using credit cards with rewards programs to earn gift cards and other perks.

    Also Check: How Much Is One Share Of Amazon

    How To Start Amazon Fba

    It may seem daunting at first to think about becoming a successful Amazon FBA seller. However, its not that complicated if you plan well and think it through.

    Many sellers operate on Amazon, and theres a well-established setup process.

    The following are the main steps you will need:

    Learn How To Advertise

    How to Start an Amazon Business

    Amazon offers advertising solutions for sellers to reach and engage shoppers. You can use these advertising methods through Seller Central:

    • Sponsored Products: These ads for individual product listings on Amazon help drive product visibility and, ultimately, sales. You can find them on search results pages and product detail pages.
    • Sponsored Brands: These search-result ads feature your brand logo, a custom headline, and up to three of your products. They help to showcase your brand and product portfolio.
    • Amazon Stores: These custom, multi-page shopping landing pages enable sellers to share their brand story and product offerings.

    Also Check: How To Send Items To Amazon To Sell

    S To Launch Your Amazon Fba Business

    When we started we took a punt on a product that neither myself nor my husband had any interest in, it was simply a popular product with high demand and low competition.

    Although that paid off for us at the time, its not a strategy I recommend. These days the competition is far greater and for both longevity and to stand out from the crowd in any meaningful way you need to choose a niche and build a brand rather than just opt for a trending product.

    How To Start Selling On Amazon

    Once youve made the decision to sell your products through Amazon, it’s time to take care of formalities. You’ll need to create a seller profile, add your products, and attract customers. Amazon has guides to walk you through each step, but you can expect the following:

  • Choose and pay for a plan, either by each individual sale, or as a subscription model with the Professional plan.
  • Create a seller account, where you can identify your business and streamline payment processes.
  • Add your products, with detailed descriptions and any technical specifications required.
  • Set pricing, and attract customers through one of Amazon’s many marketing add-ons.
  • You do have to fit into one of almost 70 categories in order to be a third-party seller. Some of the more common and most profitable categories are clothing, healthcare, beauty products, baby products, jewelry, home and garden items, cell phones, and electronics, though just about anything youd want to sell is covered.

    Read Also: How To Link Your Amazon Prime To Twitch

    Who Has The Best Amazon Fba Course

    Its always a good idea to take a suitable course before you start a new business. A course condenses years of experience and wisdom into bite-size chunks of knowledge, which can help you shoot up the learning curve.

    But selecting the right course can be problematic. Sometimes you feel like the person selling a course is only making money from the course, rather than the topic they claim to have expertise in.

    A bit like the gold rush, when some of the biggest fortunes made were by people selling the pickaxes to the prospectors. So always look for recommendations.

    I have taken many courses. These are the ones I recommend for Amazon FBA.

    The Rainmaker Challenge is a great way to get started. Chelsey and Stephen have created a fantastic set of videos helping budding Amazon sellers get started over the course of 7 days.

    The videos are easy to understand and are ideally suited for beginners.

    For an all-encompassing introduction to Amazon FBA, the course provided by Greg Mercer at JungleScout is hard to beat.

    The Learning Academy is part of the JungleScout subscription and guides you through each step of launching an Amazon FBA business selling your own branded product.

    The Academy has hours of content, including training videos, webinars, and interviews with successful Amazon sellers too.

    If you are looking to take a different path with an Amazon FBA business and want to start with Retail Arbitrage, then I also recommend Junglescouts comprehensive guide to retail arbitrage.

    Stay On Top Of Best Practices

    How To Start A Successful Amazon Business, From A Seller Making Millions

    Lastly, Amazon has a list of best practices that its sellers should follow. Complying with these means you avoid running into trouble with Amazons admins, but it also makes it more likely that customers will find your product listing trustworthy and desirable.

    Some best practice guidelines may seem so simple that they dont need a second thought, but its a good idea to check back in periodically and make sure youre following all the rules. You wouldnt want your business to suffer from a silly mistake like an ambiguous description or pixelated product image.

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    Can I Sell On Amazon Without An Ssn

    Amazon requires an official way to identify you for tax purposes when you register a seller account. If you are a US citizen, you will already have an SSN and will need to disclose it to Amazon for tax purposes.

    If you are not a US citizen, it is possible to get an SSN, but it requires work visas and the go-ahead from the Department of Homeland Security, which is not straightforward. There is a workaround, though. For selling on Amazon without an SSN, you can instead use an EIN.

    An EIN is an Employment Identification Number and is a bit like an SSN for businesses. Youll need to complete the necessary forms for overseas applications and jump a few hoops but you only have to do it once and youre good to go!

    I vaguely remember calling the IRS when we applied and within a couple of weeks received a letter with my EIN number.

    Customs and duties will require this on your shipping details, unfortunately, so this step has to be done.

    Research Product Samples: $100 To $200

    Scour Amazons categories and products to identify an existing product that will sell. Look for ones with a Best Sellers Rank between 100 and 6,000 in the high-level category, which means theyre selling well but arent too competitive. For example, this spatula is number 442 in Kitchen and Dining and No. 1 in the Spatula sub-category.

    Then visit the supplier marketplace to find manufacturers who produce similar products and order samples of the ones youre considering. Most samples cost around $50 or $60, and you shouldnt need more than two or three. You can often request some customization for no extra cost as well. For example, you might ask the supplier to replace a plastic part with a metal one to improve the quality.

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    Select And Source Items To Sell

    Once youve chosen a product to sell, you need to establish a supplier. For most items, there will be a range of potential sources.

    This remains the seller’s responsibility Amazon will not help FBA sellers with sourcing.

    There are many ways to find a supplier. Online listings, trade publications, and trade shows are good sources. Amazon could even be a source for some products. Check out digital wholesalers, such as Tundra or Alibaba. These offer extensive ranges of wholesale products and can help you access overseas suppliers.

    Building a direct relationship with a supplier has advantages. This will make it easier to discuss changing orders or to introduce new products in the future. Remember that you can always change suppliers further down the line.

    You could pick a local supplier, a domestic one elsewhere in the US, or an overseas supplier. Contact and shipping will be easier with a domestic supplier. That said, there may be a wider choice and lower prices available if you look internationally.

    Looking for an easy way to pay international suppliers? Check out the Wise Business account. You can send and receive international payments with ease, and at the mid-market rate .

    Retail Or Online Arbitrage

    Important Things You Must Know Before Starting an Amazon Business

    Arbitrage involves buying products from online or retail stores for reselling them on Amazon. You can find discounted products through local ads or follow online stores to see your options.

    Arbitrage is a good strategy for those with little money to spare for their resale desires. However, it does require a high time commitment, given the amount of regular research necessary.

    Getting your supply sources is 100% up to you.

    You don’t have to sort through suppliers and speak with manufacturers, so it is a relatively low risk. However, you run the potential of buying products nobody wants, so be sure to research market popularity before buying.

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    The Easy Parts Of Starting An Amazon Business

    Starting an Amazon business has never been easier. First, youll need an Amazon seller account, which almost anyone can set up with just a few pieces of information. Next, youll need a bank account, government-issued identification, chargeable credit card, phone number, and tax information.

    The entire process of setting up the seller account is very intuitive. Youll receive prompts along the way, so all you need to do is enter the correct information. You also dont need to worry about creating an ecommerce website to sell on Amazon.

    Youll get an online storefront with your Amazon seller account.

    Equally, finding potentially profitable products to sell on Amazon shouldnt be hard. You can use a sales analytics tool like to determine the best products to sell. The tool also helps you analyze the profit potential for your chosen products.

    Finally, you dont need to deal with the headache of fulfilling orders yourself if you dont want to. The Fulfilled by Amazon program picks, packs, and ships products on your behalf. Amazon will even handle customer service for your products so that you can focus on other essential business functions.

    Amazon Storefronts Adds A New Element To Selling On Amazon

    Selling on Amazon is a lucrative business, and getting set up on Amazon Storefronts can allow your small business to shine. One of the strengths of owning a small business is your connection to the community and the products you create. Use that connection to build your brands story and create a product that people will want, no matter where they live in the U.S.

    Amazon Storefronts can allow you to unlock a new customer base while telling your businesss story. Requesting information and filling out the companys online form is the most important first step to creating your own Amazon Storefront account.

    Recommended Reading: Is Prime Video Included In Amazon Prime

    Costs To Open A Store

    Every business is unique, so startup costs will vary. Youll pay up to $39.99 each month for the Amazon store, but you may have to pay shipping or FBA fees. Heres a breakdown of Amazon store fees.

    All US businesses need to be registered in the state where they operate. If youre going to have employees, youll also need to apply for a federal tax ID, or Employer ID Number . Select your business type and state on our website to get real-time costs and turnaround times.

    Depending on the size and scope of your store, you may need to apply for business insurance. There are several different types of policies, but the most common types are general liability, business owners policy, workers compensation, and health insurance. Contact our insurance partners for a quote and advice for your needs.

    Source Your Private Label Products

    How to start an AMAZON business with $500

    Now weve completed our product research and have some products in mind, its time to find relevant manufacturing companies who can offer the products as private label.

    In other words, they make the product, we buy it from them at wholesale prices and brand it with our own brand.

    You need to start by looking for a manufacturing company that supplies the private label products youre looking for.

    Head to websites like,,, which specialize in global wholesale trading and showcase thousands of private label products and suppliers from countries around the world.

    Once on the website simply type in the keyword of your product and do a search for a supplier.

    After years of dealing with suppliers and even visiting the factories and meeting with the owners, we reached a point where we always dealt directly with the manufacturers.

    When starting, however, out it can be quite intimidating and bearing in mind youre tying up cash in inventory, choosing the right supplier can get confusing and worrying.

    On Alibaba, they do have filters to only search for verified sellers or use their Trade Assurance program. However, many US sellers wont be verified on the platform as it requires a physical inspection by a third party.

    On all the sites you can see more details about the suppliers and do further due diligence to ensure they are who they say they are and theyre not about to run away with your money!

    Also Check: How Do You Send An Amazon Gift Card To Someone

    Search Suppliers With Jungle Scout

    You may want to start with a domestic supplier when getting started with your Amazon business. This route might even be cheaper than international suppliers at this stage of your business. You can also get products to your customers faster, and you dont have to deal with the complexity of international suppliers.

    Do I Need A Business License To Start An Amazon Business

    A business license to sell on via FBM or FBA is not required.

    All you need to do is sign up for an Amazon seller account and provide the requested information, including:

    • Business Name: It can be your chosen brand name or your full name.
    • Your phone number: Amazon will likely want to talk to you as part of the sign-up process.
    • Tax information.

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    Shop Locally On Amazon

    You can make your shopping experience more sustainable by shopping locally or regionally on and Handmade. Amazon makes it easy to find small business owners nearby with a couple of new programs and search filter options.

    Support Small

    On the same Support Small page noted above, you can explore products by 6 U.S. regions Pacific, Rocky Mountains, Northeast, Southwest, Midwest, and Southeast. You can also read about sellers with unique brands or stories in each region.

    Support Local Makers

    The Support Local Makers page contains a curated selection of Amazon Handmade products made by artisans from around the United States. You can shop by region or filter search results by U.S. state. Makers fulfill their own orders, so youre supporting small enterprise operations at multiple steps along the purchase process.

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