Starting an Amazon FBA Business: Step by Step guide

Step 1: Opening an Account

The first step to starting your Amazon FBA journey is setting up your Amazon Seller Central account. This process can take some time, as Amazon needs to verify your information. Here’s a step-by-step guide to get you started:

1. Choosing the Right Account Type

When opening an account, it’s crucial to select the right type. There are two main types of accounts:

  • Individual Account: Ideal for low-volume sellers, it costs $0.99 per sale.
  • Professional Account: Costs $39.99 per month, regardless of sales volume. This is recommended if you plan to launch a business.

Even though you can start with an individual account, forming a company and choosing a professional account is advisable if you are serious about selling on Amazon.

2. Registering Your Seller Central Account

Before you create your Seller Central account, ensure you have the following:

  • Bank account and routing number
  • Internationally chargeable credit card
  • Government-issued ID
  • Tax information
  • Phone number

Once registered, you can access Seller Central, your hub for managing your Amazon business. Here, you can list products, manage inventory, fulfil orders, create promotions, and track payments and expenses.

3. Configuring Your Seller Central Account

Before selling, configure your Seller Central account to suit your business needs. Review and adjust the following settings:

  • Public Seller Profile: Ensure your profile accurately represents your business.
  • Payment and Business Information: Double-check that all information is correct.
  • Shipping and Returns Settings: Set your shipping rates and return policies.
  • Tax Information and Settings: Ensure your tax information is current.
  • Notification Preferences: Choose how you want to receive notifications.
  • Login Settings: Set up two-factor authentication for added security.
  • User Permissions: Add other users to your account if needed, assigning specific permissions for different tasks.

Step 2: Researching Products

Identifying the right products to sell is crucial to your success on Amazon. Thorough research can help you find lucrative opportunities that align with market demand and offer competitive advantages.

Amazon product research involves analysing the marketplace to identify products with high sales potential. This goes beyond simply sourcing a product and listing it. It’s about finding products that meet customer demand and have a reasonable level of competition.

Using Product Research Tools

Tools like Helium 10, Jungle Scout, and AMZScout can help streamline your keywords research process. These tools provide valuable data on product performance, sales estimates, keyword trends, and competitor analysis.

Conducting Keyword Research

Keyword research is a cornerstone of product research. Use tools like Helium 10’s Cerebro or Magnet to identify popular and relevant search terms customers use. By understanding the search volume for specific keywords, you can gauge the demand for certain products.

Analysing Market Trends and Competition

Look for products that have consistent demand and low to moderate competition. Use product research tools to analyse metrics such as:

  • Listing quality
  • Search volume
  • Estimated sales volume
  • Historical trends
  • Competitor sales data

Aim to find products with a healthy balance of demand and competition. High-demand, low-competition products are ideal, but sometimes, expanding into competitive niches with higher entry barriers can be worthwhile if you have the capital and resources.

5. Evaluating Profitability

Consider factors like competitive pricing and profit margins. Analyse similar products’ pricing strategies to determine if you can offer competitive prices while maintaining profitability. A product with high demand but low-profit margins might not be viable.

Step 3: Finding Suppliers

Once you have identified potential products, the next step is finding reliable suppliers. This is crucial to ensure the quality and cost-effectiveness of your products.


Alibaba is one of the most popular platforms for finding suppliers. Here’s how to use it effectively:

  • Search for Products: Use Alibaba’s search function to find products similar to the ones you want to sell.
  • Contact Suppliers: Reach out to multiple suppliers to compare prices, quality, and terms. Always request samples before making a large order.
  • Negotiate Pricing: Don’t be afraid to negotiate with suppliers to get the best price.

Exploring Other Platforms

If you cannot find what you want on Alibaba, consider other B2B e-commerce platforms like Made-in-China, Global Sources, or JimTrade. These platforms focus on foreign trade and offer a wide range of products.

Attending Trade Shows

Trade shows are excellent for meeting suppliers face-to-face. You can discuss your requirements in detail, understand their quality control measures, and compare multiple suppliers in one place. While attending trade shows in China can be beneficial, many international trade fairs also feature Chinese suppliers.

Using Sourcing Agencies

Sourcing agencies can help you find suppliers and ensure quality control. They can be especially useful if you are new to the process. However, be aware that sourcing agencies charge a commission, which can affect your overall costs.

Verifying Supplier Reliability

Not all suppliers on Alibaba or other platforms are reliable. Here’s how to verify their credibility:

  • Check their business license and certifications.
  • Look at their location and ownership status.
  • Request photos of their operations and products.
  • Conduct a background check using online reviews and testimonials.

Ensuring Product Quality and Safety

Ensure that your supplier adheres to local quality and safety standards. This is especially important for products like electronics, which have strict regulations. Use tools like SellerApp’s Amazon Brand Registry to check for patents and avoid legal issues.

Managing Logistics

Consider the logistics of shipping products from your supplier to Amazon’s fulfilment centres. This includes:

  • Shipping Costs. Factor in freight charges and other shipping costs.
  • Production Time. Understand how long it takes to produce and ship the products.
  • Customs Clearance. Ensure your products meet all customs requirements to avoid delays.

By considering these factors, you can ensure a smooth supply chain and avoid running out of stock, which can negatively impact your search ranking.

Step 4: Creating a Brand

Creating a compelling and recognisable brand is vital for standing out in the crowded Amazon marketplace. Effective branding is crucial for making a strong first impression and building customer trust. A well-defined brand can give you a competitive edge and encourage repeat business.

Defining Your Brand’s Vision, Voice, and Values

Vision: Your brand’s vision should be clear and meaningful, reflecting the motivation behind your business.

  • Voice: Your brand’s voice is how you communicate with your customers. It should be consistent and resonate with your target audience.
  • Values: Identify the values that are important to your brand and your customers. These values should guide your business decisions and practices.

Choosing a Brand Name

Your brand name should be unique, memorable, and reflective of your products. Brainstorm ideas and check for availability on trademark databases and domain registrars.

Designing a Logo and Packaging

Invest in professional graphic design for your logo and packaging. Your branding should look professional and consistent across all your products. High-quality packaging can enhance the perceived value of your products.

Registering Your Trademark

To protect your brand, register your trademark with the relevant authorities in your country. Once registered, enroll in Amazon Brand Registry. This provides additional tools and protections for your brand on Amazon.

Step 5: Creating Listings

Optimised listings are essential for visibility and sales on Amazon. If you are selling branded products you can simply match against the Amazon catalog. However, if you are launching your own brand, you will need to create listing from scratch.

Writing Effective Product Titles

Your product title should be clear, concise, and include relevant keywords. It should accurately describe your product and attract potential customers.

Crafting Detailed Product Descriptions

Write detailed and engaging product descriptions that highlight the features and benefits of your product. Use bullet points to make it easy to read and include keywords naturally.

Using High-Quality Images and Videos

High-quality images and videos are crucial for showcasing your product. Include multiple images from different angles and, if possible, a video demonstrating the product.

Encouraging Customer Reviews

Customer reviews are essential for building trust and improving your search ranking. Encourage satisfied customers to leave reviews and respond to any negative feedback professionally.

Utilising Keywords

Use keyword research tools to identify and incorporate relevant keywords into your listings. This includes the product title, description, and backend search terms.

Creating Enhanced Brand Content (EBC)

If you are enrolled in Amazon Brand Registry, use Enhanced Brand Content to create visually appealing and informative product descriptions. EBC can help differentiate your product and improve conversion rates.

Monitoring and Updating Listings

Regularly review and update your listings to ensure they remain relevant and optimised. Use analytics tools to track performance and make data-driven adjustments.

Step 6: Promoting your listings

Amazon Vine

When you create new listings on Amazon, they typically begin at the bottom of the search rankings. Amazon determines product rankings based on sales performance and product reviews. To quickly gain traction, you can use the Amazon Vine program. This program allows you to send products to selected Amazon customers in exchange for reviews. Typically, this helps you gather your first 10-30 reviews.

Sponsored Product Campaigns

Once you have initial reviews, leverage Amazon’s Sponsored Products program to drive more traffic to your listings. Sponsored Products is a pay-per-click (PPC) program where sellers bid on keywords to direct potential buyers to their product pages. As you start making sales and accumulating reviews, your product’s natural search performance on Amazon will improve. Over time, this will allow you to reduce spending on advertising while maintaining high visibility.

Amazon’s advertising platform works similarly to Google’s. When you type a keyword into Amazon’s search box, some of the top results will be sponsored posts, indicated by subtle “sponsored” or “ad” text. These are Amazon ads. Advertisers bid on specific keywords to increase product visibility in Amazon’s search results pages (SERPs). When a shopper clicks on these ads, the advertiser is charged, similar to how Google AdWords functions.

Amazon ads can also appear on individual product pages. For instance, while viewing a water bottle, you might notice an ad for sunglasses on the right-hand side of the page. This placement allows advertisers to target potential customers even when browsing related or entirely different products.

Step 6: Managing Inventory

Effective inventory management is crucial to avoid stockouts and overstock situations.

Using Inventory Management Software

Use inventory management software to track stock levels, set reorder points, and automatically generate purchase orders. This can help streamline your inventory management process and reduce the risk of stockouts.

Regularly monitor your sales trends to anticipate demand and adjust your inventory levels accordingly. Use tools like Amazon’s Inventory Performance Index (IPI) to track your inventory health.

Understand FBA Fees

Amazon charges various fees for using FBA, including storage fees, fulfilment fees, and long-term storage fees. Understand these fees and factor them into your pricing strategy to maintain profitability.

Step 7: Scaling Your Business

Once your Amazon FBA business is established, focus on scaling it to increase sales and profitability.

Expanding to International Markets

Consider expanding your business to international Amazon marketplaces. Research the requirements and regulations for each market and adjust your products and listings accordingly.

Leveraging Amazon’s Programs

Take advantage of Amazon’s programs, such as Amazon Business, Subscribe & Save, and Amazon Prime, to reach more customers and increase sales.

Building a Strong Brand

Continue to build and strengthen your brand. Invest in professional marketing and branding efforts to enhance your brand’s reputation and customer loyalty.

Setting Goals and Tracking Progress

Set measurable goals for your business growth and track your progress regularly. Use key performance indicators (KPIs) to measure your success and make data-driven decisions to achieve your objectives.


Starting and scaling an Amazon FBA business requires careful planning, thorough research, and ongoing optimisation. By following these steps and staying informed about the latest trends and best practices, you can build a successful and profitable business on Amazon. Also avoid these common mistakes:

If you have any questions or need further assistance, please drop us a line.



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