Are You Thinking of Starting an Amazon Business?
Recently, a lot more clients have been asking about forming a company to sell on Amazon. Although we suggest you do your own research, here is a quick guide to help start you off on the right track.
Amazon FBA (Fulfillment by Amazon) is one of the most lucrative opportunities for entrepreneurs looking to start or scale an e-commerce business. By leveraging Amazon’s vast logistics network, sellers can store their products in Amazon fulfillment centers, allowing the company to handle storage, packing, and shipping. This lets sellers focus on growing their business instead of logistics. If you’re considering selling on Amazon FBA, here’s a step-by-step guide to help you succeed.
1. Understanding Amazon FBA
With Amazon FBA, sellers ship their products to Amazon’s warehouses. Amazon then handles order fulfillment, returns, and customer service. While FBA does come with fees, the benefits—such as Prime eligibility, faster shipping, and increased credibility—often outweigh the costs.
2. Choosing the Right Product to Sell
The success of your FBA business largely depends on your product selection. Here are some key factors to consider:
- Market Demand – Use tools like Jungle Scout or Helium 10 to research high-demand, low-competition products.
- Profit Margins – Consider product costs, shipping fees, and Amazon’s FBA fees to ensure you have healthy profit margins.
- Size & Weight – Smaller and lighter products usually have lower fulfillment fees, increasing profitability.
- Trends & Seasonality – Avoid overly seasonal products unless you plan accordingly. Focus on products with steady demand.
3. Finding a Reliable Supplier
Once you’ve selected a product, the next step is sourcing it. Many Amazon FBA sellers turn to Alibaba to find suppliers. When choosing a supplier:
- Request samples to verify quality.
- Negotiate pricing to improve profit margins.
- Check reviews to ensure reliability.
- Use secure payment methods like Alibaba Trade Assurance or PayPal.
4. Creating a Winning Amazon Listing
A well-optimized product listing increases visibility and conversions. Key components include:
- High-quality images – Use multiple angles and lifestyle images.
- Compelling title – Include main keywords naturally.
- Bullet points & descriptions – Highlight key features and benefits.
- A+ Content (EBC) – If available, use enhanced brand content to improve conversions.
5. Pricing and Advertising Strategies
- Competitive Pricing – Research competitors and set a price that attracts buyers while maintaining profitability.
- Amazon PPC (Pay-Per-Click) – Running sponsored ads can help boost visibility and sales.
- Promotions & Discounts – Running limited-time discounts or coupons can drive more traffic.
6. Managing Inventory & Scaling
Amazon’s inventory management tools can help you track stock levels. Avoid overstocking or understocking to minimize storage fees and prevent stockouts. As your sales grow, consider launching new products, optimizing ads, and reinvesting profits to scale.
Final Thoughts
Selling on Amazon FBA offers a massive opportunity for entrepreneurs, but success requires the right strategy. By selecting profitable products, optimizing listings, and managing inventory effectively, you can build a thriving e-commerce business. Whether you’re a beginner or an experienced seller, following these steps will help you maximize your success on Amazon.
Often, the first step is to form a Delaware LLC. This is where Harvard Business Services is happy to assist. Although we can give you specific instructions on how to run your Amazon Business, we can help you get incorporated. This is often done to put a wall up between your business and personal life. Call in today to get started. 1-800-345-2677.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.