How to Start an Amazon FBA Business: A Step-By-Step Guide For Beginners

Jun 18, 2018 | Mompreneur

Start an Amazon FBA business

Reselling products on Amazon and eBay is a great way to make extra money or even a full-time income– depending on how much work you put into your business.

Selling on Amazon and eBay fits right into my lifestyle as a single mom of a special little boy because:

a. We already have to go shopping for food and supplies so it’s easy to pick of discount products to flip online

b. I live walking distance to the post office so making regular trips to drop off packages is easy

Even if you don’t live in walking distance to a post office, most post offices can do scheduled pickups at your home. If you have a computer and internet, it’s easy to get started.

What is “Amazon FBA”?

FBA stands for “Fulfillment by Amazon” which means you list the products and then bulk ship them to a designated Amazon warehouse. Amazon then ships the items to the buyer when the item sells- you receive payment.

You also have the option to list items on Amazon and then ship them directly to the customer yourself, called “self-fulfillment”.

Here are some pros and cons of using Amazon FBA:

pros

  • Items are listed as “Prime” which means Prime members can get free two-day shipping. Amazon Prime member are more apt to buy Prime items specifically for the fast shipping.
  • You don’t have to worry about constantly making shipments. The convenience of sending out one big box once a week as opposed to shipping something every day is ideal.

cons

  • Amazon charges extra fees for storage. If your items aren’t popular and take awhile to sell, Amazon will charge you for long storage fees too.
  • It can take up to a week or longer after you send your items to the Amazon warehouse for the items to be officially up for sale on the Amazon website.

It’s possible to do both FBA and Self Fulfillment

You can absolutely do both!

I’d suggest shipping your slow-moving items yourself and then sending the rest to Amazon.

Here’s EXACTLY how to get started FOR FREE selling on Amazon:

Go to Amazon Services

Go to this page to start: https://services.amazon.com/

Click on “Prices” to compare the plans side-by-side to see which is best for you.

Choosing your plan

I’d suggest starting for free unless you have over 40 items you’re listing right now.

Starting with the Individual plan allows you to build your business as your business grows without any unnecessary starting costs.

Register account

You may use your current Amazon email and password to create a seller’s account.

For this tutorial, I’m going to start a whole new profile.

I have used my Amazon profile in the past and I think it’s generally a good idea to use your existing account especially if you’re an Amazon customer.

Why? Because you’re bound to run into conflicts down the road and being able to show that you’re a loyal buyer and seller can only help you. I’m not saying it’ll get your out of every conflict, I’m just saying it won’t do you any harm having your buying and selling accounts linked.

Seller Agreement

Enter your full legal name. Read the Amazon Services Business Solutions Agreement and if you agree with the terms and conditions, click the box, and click “next”.

Seller Information

Use the existing address on file or enter a new business address.

Choose the name of your selling business. This will be the display name that all the Amazon customers will see.

If you have a relevant product website you’d like to connect, enter that as well.

Enter your mobile phone number.

Set up your billing method and deposit method

Your account will be charged $0.01 to verify that you have a working account. The one cent will be refunded to you after it’s been verified.

You’ll need your checking and routing number of your bank account to set up your deposit method so you can get paid.

Tax Information

Press start to continue forward

Tax Information Interview

If you’re doing this yourself then “Individual” is probably fine but I can’t technically offer you any legal or tax advice.

The only person on my payroll is me so I’m doing “individual” and will use my social security number.

Enter in all your information.

If you want or need a Tax Identification Number or you’re not sure if you need one go to:

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

Sign and Submit Tax Interview

You’ll need to consent to providing an electronic signature by clicking the box.

Read and review the information provided is correct and you agree with all the statements listed before signing.

Review your Tax Information Interview

Double check, triple check, and then check it again to make sure all your tax information you provided is correct.

Pending Validation

You’re done with the tax information interview. No further action is required at this moment.

Go ahead and click “Exit Interview”

Enable Two-Step Verification

Enabling Two-Step Verification only takes a few minutes. It protects your account, sales, and money so it’s important to do it.

Plus, if you don’t do it, Amazon will ask you every single time you log in to Enable Two-Step Verification which starts to get really annoying after awhile.

No worries, I’m going to walk you through the entire process right now. Click on “Enable Two-Step Verification”.

Sign in

Enter your log-in username. Amazon sent you a temporary password in your email in order to verify the account.

Check your email account and enter the provided password.

Click “sign in”

Authenticator App

Download the Authenticator App on your phone.

Use the app to scan the code provided and then you’re done.

YOU DID IT!

You are officially registered as an Amazon seller!

Get yourself familiar with the rules and regulations to avoid any derogatory performance marks.

Go ahead and click on “Performance” to review.

Selling Policies and Seller Code of Conduct

Familiarize yourself with the Selling Policies and Seller Code of Conduct. It’s pretty straightforward.

 

You are now ready to list your first item! How exciting!

Happy selling! I know you’ll do well in business.

I’m currently working on a follow-up post on what supplies you need to get started selling FBA and also how to source products to sell.

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Thank you!

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Hey, I'm Nicole

Hey, I'm Nicole

I'M A SINGLE MOM OF A LITTLE BOY WITH AUTISM. I SHARE WHAT I'VE LEARNED ABOUT RAISING A SPECIAL CHILD WITH TIPS FOR SELF CARE AND PERSONAL  DEVELOPMENT

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