Besides Affiliate Marketing and Dropshipping, Amazon FBA is probably the most popular way to make money online. FBA stands for the program Fulfilled by Amazon offered by Amazon. Translated, this means that Amazon products are sent in large quantities and Amazon then processes all orders itself (storage, logistics, shipping).
At the same time, you create a related listing at Amazon so that these products are ultimately also found by Amazon.
At the beginning the expenditure of time is very high, because you have to invest a lot of time in product research to find potentially suitable products. These have to meet a variety of criteria in order for them to assert themselves against the competition on Amazon and then sell successfully.
Then you have to find manufacturers for potential products in China (mostly on Alibaba). This can also take some time as you usually have to negotiate with several manufacturers and agree conditions.
As soon as you have found the right products at a good price in China you only have to send them to the Amazon warehouse, create the listing and optimize them so that they rank well.
If the desired ranking is reached, the products sell themselves as good as by themselves and you only have to take care that the manufacturer from China delivers every few weeks (depending on the demand of the product) more goods to Amazon.
The required skills for Amazon FBA are not as high as for Dropshipping. After all, you don’t have to build and run your own web shop. Amazon is a conversion optimized marketplace that works by itself as long as you list the right products and they rank well.
Exactly this is where the two core skills needed for Amazon FBA lie (Product Research & Amazon SEO). The product search usually follows a certain scheme because the products have to meet certain criteria. However, this can be learned and there are enough instructions and courses.
For the optimization of the listing so that it also converts well and rankt one needs to know more (among other things in the Amazon SEO area). But this is just as easy to learn and by far not as difficult as many believe.
Nevertheless Amazon FBA is not an absolute beginner business. But if you are ambitious you will be successful.
start up Money
Amazon FBA requires by far the most seed capital. You should be aware that all products must be financed in advance and that the minimum order quantity is usually several hundred pieces. In addition, the shipping costs as well as the costs for the initial advertising of the listing have to be considered.
Even if one does not indicate any exact lump sum costs, one should nevertheless count on a starting capital of at least 2000 USD. The exact value depends of course on product type and advertising costs (these depend again on the competition and the product niche) and can therefore be lower but also higher.
Income / Profit
Compared to the comparatively high start-up costs, there is of course also a potentially very high profit. This can even be calculated precisely with the Amazon FBA calculator. Thus the financial success is also very well calculable. You should do this in the beginning, because as an entrepreneur you should always know your payments.
The potential profit can be quite high and there are already some who after months of successful selling on Amazon have begun to have the products labelled by the manufacturers and build their own brand. As with Dropshipping, branding is a factor that can take the entire business to the next level. Successful Amazon FBA brands often generate 6-7 digit sales per month.
Start up Money
Income / Profit