So first things first I’m going to introduce myself. My Name is Louis, or (Dad Makes Dough) on social media. I’m a young entrepreneur and I’ve been in the making money online game for the last decade. I’ve done everything from reselling, affiliate marketing all the way up to amazon FBA. I’ve succeeded and failed and in this guide I’m going to go through Step by Step on how to get started in amazon FBA. By reading this and taking into account my knowledge i can help you not fall for the same fails i did in my time doing this.
So I started FBA properly back in Summer 2019 collecting free books from facebook marketplace and sending them into FBA for profit. I was making 100% profit as they weren’t costing me a penny. Once the sales started coming in I used that profit, as well as flipping broken phones to start ‘Feeding the Beast’.
So What is Amazon FBA?
FBA means Fulfilled By Amazon.
This means you register as a seller on the Amazon platform and purchase your stock, this can be anything. Then you print off the labels provided by amazon, stick them on your products and send them to an amazon warehouse. That’s the hard work done and now the business model starts to become passive. Amazon deals with all the customer service, packing and shipping of your product and taking fees and leaving you with the profit.
How Do I Get Started?
First things first your going to want to click here and create an account.
You will be asked to choose a selling plan if you want to sell on amazon.
The basic plan is free however you can only sell 35 products or less per month and have to pay more fees.
I would recommend choosing the professional plan which is £25 per month plus vat but you pay less fees per product, can use bulk listing features and also sell higher volumes.
Now Its Time To Find Your Products!
When it comes to finding stock for Amazon there are usually 3 different ways sellers do this.
Retail Arbitrage, Online Arbitrage, Wholesale & Private label but i wont go into that.
Retail arbitrage is going into discount stores like TKMAXX or B&M and scanning products to find things that are profitable. You can also do this as part of your regular shopping at the clearance section of a supermarket or boots and find a profitable product. Simply use the Amazon Seller App to scan the barcode or I like to use an app called PROFITL – https://bit.ly/3sZMjVi
The only problem with that is you can only get as many products that are in stock, so if you find a product in tesco that nets you £5 profit per item, but there’s only 6, you will need to drive around other stores to try and find them. This is a lot of time effort and fuel costs to take into account.
This is the most time and cost effective way of sourcing products for FBA. You can do this from the comfort of your own home. Now pay close attention to this part because with this method of online arbitrage i can make more profit per unit every time.
So you can find lots of products online, go to amazon and see how much they sell for, buy multiple units. Get them delivered, label them and send them to the warehouse but when you are not sure where to look for products it can be daunting. I use a program called Profitl Dealsheets. Its the best app ive used for amazon fba so far. The dealsheets look something like this.
This will show you the product, how much you can buy it for at the retailer and how much its selling on amazon. The average profit per unit. Sales rank etc and how many sales per month that product has.
So for instance let’s pick this.
This is on the Dunelm website for £8 but selling on amazon for £18.
So go to a website first called Quidco and sign up (this is a cashback site)
If you purchase this product you will receive 1.5% cashback. So if we buy 10 units at £8
You will get £1.20 back, now this isnt life changing money. Some stores offer much more cashback than this but it all adds up over time.
Now lets input this product info into Profit and break down the profits and costs.
We can see this product sells between 1620-2640 times per month. With an estimated profit after fees of £4.31.
So break down of that would be
If you buy 10 units. That’s £43.10 profit all from the comfort of your own home. Now scale this method over time as you get more money to invest and order 100 units. That’s £431 profit. The sky really is the limit with Amazon FBA.
Amazon deal with all the shipping, returns and customer service so all you will do is receive your profit each month. Once you have enough products in their warehouse it becomes a semi passive business model. My tips would be to keep feeding it. Keep a good circulation of sending products in, sourcing products and reinvesting profits.
As a newbie to FBA I would recommend starting small. Gain as much knowledge as you can and do a lot of product research. Sometimes you can take losses. The product price can change by the time you send your products to them and you might break even rather than profit. But please don’t let this knock your grind. You will be constantly learning!
I have joined as a member of the money shed forums, so if anyone has any questions about amazon FBA then pop a message on the thread. Myself of one of the community would be happy to help answer. Check out my Youtube channel for more information on making extra money.