January 01. 2025 By Monir Hossain
If you’re thinking about starting an Amazon FBA business, but are unsure if this business model is for you, or how to get started, you’re in the right place.
Selling on Amazon is without doubt one of the most lucrative business models online today. It’s also ideally suited for digital nomads traversing the globe as it can be launched and managed entirely online!
In fact, when I decided to try starting an amazon business, I had no idea that one small and seemingly insignificant product would grow to generate over 1 million dollars in revenue within 1/2 years!
Seven figures sounds like a lot, but all you need to make that amount of money on Amazon is one product, priced at $30, selling 100 units a day. And with over 300 million paying users on the most trusted ecommerce brand online, that is completely doable.
I’ll delve more into our story a bit later in the article, for now, if you want to get right to the meat and potatoes of how to start a 7 figure Amazon FBA business, here’s the short version;
- How to Start an Amazon FBA Business in 2024 – TL;DR
- What is Amazon FBA?
- How Does Amazon FBA Work?
- How to Start a 7 Figure Amazon FBA Business in 2024; 8 Actionable Steps
- Step 1. Choose Your Niche
- Step 2 – Find Products to sell on Amazon FBA
- Guidelines for Product Research for Amazon FBA
- Assessing the Demand of a Product
- Best Amazon FBA Business Product Research Tools
- Assessing the Competition
- Step 3 – Source Your Private Label Products
- Some Negotiation Tips
- How to use the Amazon FBA Calculator and Calculate the Financial Viability of your Products
- Testing Your Products
- Building Relationships With Your Suppliers
- Step 4. Establishing Your Brand
- Your Brand Name
- Your Brand Design
- Step 5. Create Your Seller Account
- Step 6. Shipping Your Amazon Product
- Using a Third Party Inspection Service
- Step 7. Launching Your Products on Amazon
- 1. Optimize Your Listing
- 2. Focus on Getting Reviews
- 3. Invest in Amazon Sponsored Ads
- 4. Create Keyword-Rich FAQ’s on Your Listing
- 5. Engage in Influencer Marketing
- Step 8. Building Your ‘Off Amazon’ Audience
- Influencer Marketing
- Other ‘Off Amazon’ Methods
- Is Starting an Amazon FBA Business Still Worth It?
- Our First Full Year of Growth
- Some Key Lessons Learned
- 1. Always remember Amazon is a 3rd party site, you are not in control, therefore it will be frustrating!
- 2. The later you come into this game, the longer term you have to plan.
- 3. If you want to play in Amazons Garden, you’ll have to play with their toys!
- 4. Don’t get caught up in operational tasks and neglect the marketing
- 1. Images
- 2. Your Product Listing
- 3. Reviews
- 4. Maintaining a High Seller Rating
- 5. Sales Velocity + Conversions
- 6. Stay In Stock
- 7. CANI
- An Interview With a Successful Amazon Seller and World Traveler
- How to Start an Amazon FBA Business – Frequently Asked Questions
- Do You Need a Business License To Sell Amazon FBA?
- Do I Pay Taxes If I Sell on Amazon?
- Do I Need an LLC To Sell on Amazon?
- Can an Amazon FBA Business Make You Rich?
- How Much Is Amazon FBA per Month?
- How Much Does It Cost To Start an Amazon FBA Business?
- How Much Money Do I Need To Start an Amazon FBA Business?
- Can I Sell on Amazon Without an SSN?
- Can You Start an Amazon Business With No Money?
- Is the Amazon FBA Business Model Still Profitable in 2024?
- Do I Need an Amazon FBA Business Plan?
- How Do You Find Existing Amazon FBA Businesses for Sale?
- How Do You Create an Amazon Storefront?
- Who Has the Best Amazon FBA Business Course?
- Thanks For Reading!
How to Start an Amazon FBA Business in 2025
1. Choose your niche & build your audience – The landscape has changed since we built our first Amazon FBA business. There are a lot more 3rd party sellers on the platform and consequently the competition has significantly increased. When we started back in 2016, you could get away with finding a product, listing it and letting Amazon do its magic, (a bit like the early days of SEO).
However, nowadays, I highly recommend building your own audience first. Choose your niche, build an email list and then when you launch your product on Amazon, you have a list of engaged people you can promote your product to. These launch customers will kick start your sales velocity and give you a head start on reviews, which combined will kick into gear the Amazon magic!
2. Find a popular product within your niche to sell – Start with just one, trust me, one is enough. Use the Amazon bestsellers list to start your product research. Look for something that sells for a decent price point $20 – $50 (for good profit margins). Ideally weighs under 2lbs (to keep shipping costs down) and is in demand on the platform (determined by number of products, reviews, seller rankings etc).
3. Source your products – Use manufacturing marketplaces like GlobalSources, Alibaba, DHGate etc., or to make your life a whole lot easier, use Junglescouts Supplier Database. With their fingers firmly in all sections of the Amazon pie, these guys are the best at what they do and their supplier database will save you hours of frustrating research. Check it out, you can thank me later.
4. Create your own brand name & design – Without a doubt, our brand was a major reason for our success. Don’t let this hold you up, but get your creative juices flowing here and come up with a name and logo to help you stand out from the crowd!
5. Create your seller account – Before you can ship products to Amazon, you’ll need an Amazon seller account, but don’t set it up too early as you have to pay a monthly fee for the privilege. When you place your order for your first batch of products, get your images, listing, keywords and launch strategy prepped and then open your Amazon seller account when they’re ready to ship.
(NB: Rumor is that it’s taking some time for new sellers to open accounts on Amazon at the moment so it might be worth doing this ahead of time).
6. Ship your product – For some reason, this is the stage that many new sellers find intimidating. Fear not, your supplier will help you and there are a million Amazon groups you can join to ask for advice through the process.
7. Launch your product on Amazon – Yippee! You’re live on Amazon! Make sure your listing looks tip-top, with great images, a compelling keyword-rich headline, great bullet points and a detailed product description. Then follow our launch strategy as below.
Cutting through the fluff, the most important factors for ranking on Amazon and growing your Amazon FBA business are high conversion rates and consistent sales velocity. From Day 1 you need to be generating daily sales. Even if it’s only 5 – 10 sales a day.
This is where your audience comes in! Promote your launch to your email list. Tell everyone you know your product is available for sale on Amazon. Run Amazon PPC ads. Send your products to influencers to review and send traffic. Whatever you can do to generate daily sales. That’s your goal! NB: Reviews are important as they contribute to higher conversion rates, which contribute to more sales!
8. Build your ‘off Amazon’ audience – The secret to our success was the marketing we did ‘off Amazon’. The fastest way to get this off the ground is to approach influencers in your niche, with large audiences. Send them a product to review and talk about, and give them a link for people to purchase.
I can’t express strongly enough how well this strategy works! Even more so in 2024 with the number of influencers looking for brand collaborations. (A good friend of mine has recently increased his Shopify sales tenfold using this very strategy).
I go into each of these points in much greater detail throughout this post, which I urge you to bookmark and re-read, section by section as you launch your Amazon FBA business.
So before we get into the nitty gritty, just to be sure we’re on the same page;
What is Amazon FBA?
FBA means ‘fulfilled by Amazon’. This means they handle all product fulfillment including packing, distribution, returns, etc. As a seller, you send products to their warehouses (fulfillment centers), market your products to their (and your) audience, and let Amazon handle the rest!
They do have a service called FBM, which means you sell on their platform but fulfill all orders yourself. This works if you’re a big company already selling all over the world with your own fulfillment centers. But if you’re just starting out I highly recommend FBA.
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