Amazon FBA Guide — How to Sell on Amazon with Fulfilled by Amazon
Amazon FBA (Fulfilled by Amazon) lets you send products to Amazon warehouses, and Amazon picks, packs, ships, and handles customer service. You tap into Amazon's 200M+ Prime customers and world-class logistics.
Amazon FBA is the most scalable e-commerce model. Unlike dropshipping where you rely on slow suppliers, FBA puts your products in Amazon warehouses with 1-2 day Prime shipping. Unlike building your own Shopify store, FBA gives you instant access to millions of shoppers who already trust Amazon. The trade-off: you must buy inventory upfront ($1,000-5,000 minimum for a first product), and Amazon fees eat 25-40% of your revenue.
Product Research
Product research is the most important skill in Amazon FBA. Use tools like Jungle Scout, Helium 10, or Viral Launch to analyze market data. Look for products with: 100-500 monthly sales per top listing, under 500 reviews on top listings (indicates room to compete), price between $15-50 (sweet spot for FBA fees), and room for differentiation (better packaging, an extra accessory, improved design). Avoid categories dominated by Amazon itself (Amazon Basics), products with high return rates (electronics, clothing), and products requiring approval (grocery, beauty without prep).
Sourcing & Manufacturing
Most Amazon sellers source from China via Alibaba.com. Contact 5-10 suppliers for your product, request samples, and negotiate pricing. Key terms: MOQ (minimum order quantity) — typically 500-2,000 units for a first order; FOB (freight on board) — the supplier ships to a port, you arrange freight forwarding; unit price — aim for 25-30% of your retail price to leave room for Amazon fees (30%) and profit (30-40%). Always order samples before placing a bulk order. Use a third-party quality inspection service (like QIMA or SGS) before shipment leaves the factory.
Listing Optimization
Your Amazon listing determines whether shoppers find and buy your product. Keywords: Research keywords using Helium 10 or Amazon's search bar. Include high-volume keywords in your title, bullet points, and backend search terms. Images: Professional product photos with white backgrounds (required by Amazon), lifestyle shots showing the product in use, and infographics highlighting features. A+ Content: Enhanced brand content with rich images and comparison charts (free once you register your brand). Reviews: Use the Amazon Vine program (free or discounted products for reviews) to get initial reviews — 15+ reviews with 4.3+ stars is the threshold for the algorithm to start showing your product.
PPC Advertising
Amazon PPC (pay-per-click) is how you get initial sales. Sponsored Products ads target keywords shoppers search for. Start with automatic targeting to discover converting keywords, then move high-converting keywords to manual targeting. Typical ACOS (advertising cost of sale) for new products: 30-50% initially, 15-25% once optimized. The goal is to generate organic rankings — once your product ranks on page 1 for your target keywords, organic sales will sustain your business and you can reduce ad spend.