Amazon FBA is often billed as the easiest way to sell online. It handles storage, packing, and shipping so you can focus on product research and growth. If you’ve wondered how to pick a winning product, cut FBA fees, or set up Amazon Seller Central without getting swamped—this guide walks you through it. I’ll share practical steps, real-world examples, and the traps I’ve seen sellers fall into. Expect clear, actionable advice for beginners and intermediate sellers.
What is Amazon FBA and why it matters
Fulfillment by Amazon (FBA) lets sellers send inventory to Amazon warehouses. Amazon stores, picks, packs, and ships orders, and handles returns and customer service. For many sellers, that convenience is a game-changer.
Core benefits
- Prime eligibility — boosts conversions.
- Logistics handled — less time on packing and shipping.
- Customer trust — Amazon’s brand helps sales.
How Amazon FBA works (step-by-step)
Here’s the process in plain terms.
- Create an Amazon Seller account (use Amazon Seller Central).
- Choose products via product research—private label or wholesale.
- Source inventory from suppliers or manufacturers.
- Ship inventory to Amazon fulfillment centers.
- Amazon stores and fulfills orders; you monitor via Seller Central.
Product research: pick something that sells
Product research is where a lot of deals are won or lost. From what I’ve seen, winners share a few traits: stable demand, reasonable competition, and room for differentiation.
Practical product research checklist
- Use sales tools and Amazon best-seller lists to gauge demand.
- Aim for products with 200–2,000 sales/month in the niche (adjust by category).
- Check reviews—if top listings have weak photos or poor descriptions, there’s opportunity.
- Validate margins after FBA fees, shipping, and ads.
Costs & fees: understanding FBA fees
FBA fees can surprise new sellers. They include fulfillment fees, storage fees, referral fees, and optional services. Always run a break-even model before ordering stock.
Key fee types
- Referral fee — percentage of sale (varies by category).
- Fulfillment fee — per unit for pick/pack/ship.
- Storage fee — monthly; higher in Q4.
Quick comparison table: FBA vs FBM
| Feature | FBA | FBM (Fulfilled by Merchant) |
|---|---|---|
| Shipping workload | Handled by Amazon | Handled by seller |
| Prime badge | Yes | No (unless Seller-Fulfilled Prime) |
| Costs | Higher fees, less time cost | Lower fees, more time/operations |
Sourcing suppliers and manufacturing
I usually recommend testing small, then scaling. Alibaba is common for private label, but also consider local manufacturers for faster turnarounds.
Steps to source reliably
- Request samples and inspect quality.
- Negotiate MOQ and price—ask for trade references.
- Factor in lead times and shipping (air vs sea).
Listing optimization & conversion (SEO for Amazon)
Your listing is the landing page. Treat it like a micro-website: clear title, strong images, benefit-driven bullets, an enticing description, and backend keywords in Seller Central.
PPC and advertising basics
Amazon PPC drives visibility. Start with automatic campaigns to gather search terms, then shift budget to manual, high-performing keywords.
Shipping to Amazon fulfillment centers
Plan shipments strategically. Splitting shipments across centers can increase costs. Use Amazon’s FBA shipment workflow in Seller Central and label products correctly.
Packaging and prep tips
- Follow Amazon packaging requirements to avoid prep fees.
- Use poly bags, bubble wrap, or cartons as required per SKU.
- Barcode everything—either manufacturer barcodes (UPC) or Amazon FNSKU labels.
Inventory management & avoid stockouts
Stockouts kill ranking and momentum. Keep a safety stock and use inventory tools or spreadsheets to project needs.
What I track monthly
- Sales velocity by SKU
- Lead times from supplier
- Days of cover (DOH)
Scaling: automation, delegation, and expansion
When you hit product-market fit, you’ll need systems. Hire a VA for routine tasks, use repricers if in competitive niches, and consider multi-channel selling.
Expand smartly
- Test variant SKUs before huge orders.
- Consider new marketplaces (EU, CA) once US is stable.
- Keep an eye on cash flow—reinvest profits into inventory that sells.
Common pitfalls and how to avoid them
- Ordering too much stock too soon—start lean.
- Ignoring product reviews—respond and iterate.
- Neglecting ad math—track ACoS and breakeven.
Quick starter checklist
- Create Seller Central account and verify identity.
- Complete product research and margin calculations.
- Order samples, test quality, then place a small initial order.
- Set up listings with SEO-driven title, bullets, and images.
- Launch small PPC campaigns, monitor, and optimize.
Resources & trusted links
For official policies and up-to-date fee tables, check Amazon Seller Central. For a background on fulfillment models, see the Fulfillment by Amazon page on Wikipedia.
Final thoughts
Amazon FBA isn’t a magic shortcut—but it can be a highly scalable way to build a product business. Start small, measure constantly, and improve each listing. If you focus on reliable product research, control costs like FBA fees and ad spend, and treat listings as real sales pages, you’ll be in a strong position to grow.