Amazon FBA Guide: if you’re wondering how to sell on Amazon without getting buried in packing boxes and returns, this guide is for you. I’ll show what works, common traps, and practical steps—from product research to PPC and inventory management. Whether you’re starting a private label or scaling existing listings, you’ll find actionable advice and real-world examples to move faster and avoid rookie mistakes.
Why Amazon FBA? Quick snapshot
Fulfillment by Amazon (FBA) handles storage, packing, shipping, and customer service. That convenience translates into time to focus on product research, marketing, and scaling.
- Faster shipping with Prime eligibility.
- Customer trust because Amazon handles returns and support.
- Scalability—you can grow without hiring packing staff.
Getting started: Step-by-step setup
1. Create a seller account
Sign up on Amazon Seller Central. Choose between Individual (no monthly fee, per-item fee) and Professional (monthly subscription, access to advanced tools). From what I’ve seen, most serious sellers go Professional right away.
2. Choose your business model
Popular options:
- Private label — build your own brand (higher margins, more time).
- Reselling/retail arbitrage — lower barrier, thinner margins.
- Wholesale — buy bulk from brands, sell at retail.
- Handmade — niche craft products.
3. Product research (do not skip)
Product research is the foundation. I usually use a mix of tools and manual checks: sales velocity, reviews, seasonality, and profit margins after FBA fees. Look for low competition pockets where you can stand out.
- Target products with steady demand and sub-200 reviews for easier entry.
- Calculate all costs: product cost, shipping to Amazon, FBA fees, and ad spend.
Supplier sourcing and shipping to Amazon
Most sellers source from manufacturers (often via platforms like Alibaba). Small things matter: packaging specs, lead times, and quality control.
- Order samples before committing.
- Specify Amazon-ready packaging to reduce prep fees.
- Plan shipping: air is faster but pricier; sea is cheaper for larger orders.
Listing optimization and product launch
Listing fundamentals: title, bullet points, images, and backend keywords. Use high-quality images and an honest but compelling title. For featured snippets and conversions, structure text to answer buyer questions fast.
Launch strategies
- Start with an inventory buffer to avoid stockouts.
- Use promotional discounts and coupons to generate initial sales velocity.
- Early reviews matter—follow Amazon’s policy-compliant review requests.
Advertising: Amazon PPC made practical
PPC is how most sellers get initial visibility. Don’t throw money at broad campaigns—optimize.
- Begin with automatic campaigns to discover keywords, then migrate winners into manual campaigns.
- Bid by ACoS target: profitable is subjective—aim for break-even early if you want market share.
- Use negative keywords to cut wasted spend.
Inventory management and avoiding stockouts
Inventory issues kill ranking and sales. From what I’ve noticed, predictable reorder points and lead-time buffers save headaches.
- Track sell-through rate weekly.
- Factor in lead time, seasonal surges, and manufacturing delays.
- Use spreadsheets or dedicated software for alerts.
Fees, margins, and profitability
FBA fees include fulfillment, storage, and referral fees. Always calculate landed cost per unit and target a gross margin that covers ad spend and returns.
| Fee Type | Typical Impact |
|---|---|
| Referral fee | Percentage of sale—varies by category |
| Fulfillment fee | Per-unit pick/pack/ship cost |
| Storage fee | Monthly—higher for long-term inventory |
FBA vs FBM: quick comparison
| FBA | FBM | |
|---|---|---|
| Fulfillment | Amazon handles | Seller handles |
| Prime eligibility | Yes | Possible (Merchant-Fulfilled Prime) |
| Control | Less control over packaging | More control, higher effort |
Scaling: What works after product-market fit
Once a product is profitable, double down on what’s working. I often diversify into variations, bundles, or adjacent niches.
- Expand listings with new ASINs and related keywords.
- Use Sponsored Brands and Display ads for brand-level reach.
- Consider external traffic: influencers, email lists, and Google Ads.
Common pitfalls and how to avoid them
- Ignoring unit economics—always run profitability scenarios.
- Poor quality control—returns kill margins and reviews.
- Running out of stock—maintain safety stock and reorder points.
Real-world example
I once helped a seller who launched a kitchen gadget. They used aggressive PPC with a 50% ACoS to win the buy box and climbed into the top 5 for a high-volume keyword. After establishing organic rank, they tapered ads and focused on product variations—doubling revenue in six months while improving margin.
Tools and resources
- Product research: Jungle Scout, Helium 10 (or manual Amazon filters).
- Accounting: Track all FBA fees and ad spend with a dedicated tool.
- Inventory: Use reorder alerts and forecasting software.
Next steps (practical checklist)
- Choose a business model and create Seller Central account.
- Run product research and calculate margins (include FBA fees).
- Order samples, finalize packaging, and ship to Amazon.
- Optimize listing, launch with a controlled PPC plan, and monitor inventory.
Wrapping up
If you take one thing away: focus on products with predictable unit economics and a clear path to win the buy box. Start small, measure everything, and iterate. If you want, test a single SKU and treat the first 90 days like a controlled experiment—learn fast and scale what works.