How To Start An Amazon FBA Business Action Plan 
                     How To Start An Amazon FBA 
Business Action Plan
Amazon launched a program in 2006 “Amazon FBA Business”. 
It allows you to manage eCommerce business efficiently. You 
source a product and sends the inventory to Amazon. They 
keep your inventory in the warehouse and manage it for you.
Once you start receiving the orders, they will pack the ordered 
unit and deliver it to your customer. Assured shipping, prime 
delivery, and time saving are the best pros of doing FBA 
business. Check Fulfillment by Amazon business model below.
FBA Business 
Model
Step-
1
Make an account on Seller Central. List your product 
on Amazon as FBA.
Step-
2
Make shipment labels for the products and get them 
labeled to the inventory.
Step-
3
Forward the inventory to the mentioned Amazon 
warehouse.
Step-
4
Once your inventory reached the Warehouse, 
Amazon makes your listing active.
Step-
5
When you receive the order, Amazon will process 
them.
 Amazon FBA Business With 
Plan
Sign Up To Seller 
The first steCp eton sttraartl the Amazon FBA business involves Seller 
Central registration. Fill all the input fields and provide necessary 
documents. They will moderate and activate your account.  
Start With Product And Niche 
RA esuspeear rhcith movie demands super star cast and a great story plot. 
The same things applies to Amazon. Here, your product is a 
super star and story is a niche.
Few things to consider while doing product research 
for FBA: 
• Lightweight And Durable 
AP rsoedlleur cstends his inventory to Amazon warehouse to start 
FBA business. Like other shipping careers, Amazon charge 
FBA fees to customer for order processing. The shipping fees 
depends on product weight.
So, target a lightweight product and a durable product for 
FBA. It costs less Amazon FBA fees that will contribute to 
more profit. Try finding a product weighs between 1-5 pounds. 
A small, compact, and lightweight model costs less for 
product. 
• Competition And 
 DTheem seacnodnd thing to look for is competition and demand of 
the product. Shoes, garments, and grocery are good demand 
categories. But, you will find thousands of sellers competing 
to each other. So, it is a good idea to go for it?
No, it is not a good idea to stat a new venture in this 
categories. See the above image. 1,00,000 sellers are 
competing on Amazon. It is in great demand though. Sellers 
have good reviews and ratings as well. But, think of 
competition, much higher. 
So, it is better to look for a product having less sellers and 
demand is moderate and high. Do market research and 
Amazon research. 
Jungle scout and Helium 10 would be an ideal option to find winning 
products for your business. Search products with advanced filters 
and get product ideas instantly. 
• FBA Fees
As Amazon do shipment of your orders, so obviously they will 
quote you shipping fee. That fee is the FBA fee. The FBA 
comprises of shipping charges and referral fees (15% of the 
total sales amount).
So, when you researching a product on Amazon and going to 
a conclusion, do check the FBA fees Amazon is charging for 
that product. Install Amzscout chrome extension to calculate 
approximate FBA and storage fees. Make an excel sheet and 
prepare a record of all products.
• Avoid Category Approval 
 PYrooud cuanc tssell anything on Amazon that fits their selling 
guidelines. But, Amazon does not approve selling all products 
without certifications and legal licenses. There are categories 
that needs approval to sell on Amazon. Grocery and 
Gourmet, Hazardous items etc needs certain certifications to 
get approval.
If you are a retailer and selling a branded product (e.g. Nike 
shoes), you need to prove yourself as a legitimate retailer in 
order to start selling on Amazon. 
Product Sourcing 
(Find the right supplier)
Prepare a list of products you think are the best for launching 
on Amazon. The second phase is sourcing the products. To 
start with sourcing, you need to understand your FBA 
business model. 
Do you want to start with low stock inventory or want to give a 
moderate or huge start. Based on your planning and budget, i 
have drafted three best models to start FBA business for 
sourcing your product.
You will find an option in the seller central to scan the product’s 
barcode, scan the product at Walmart store and compare the price.
Amazon FBA has three models:
• online arbitrage
• Buy wholesale and sale retail
• Private label / Wholesale
An Arbitrage business refers to a trick of purchasing products at 
low and discounted prices from local stores, shopping malls, 
and stock clearance sites and list them on Amazon at higher 
prices.
Suppose, you went to Walmart and found a product selling at 
30 USD. Scan and check the product’s selling price on 
Amazon.
List it on Amazon in a single click, make an FBA plan and 
you are all set to sell it on Amazon.
Pros:
• You can buy stock as required.
• less investment
• Easy delivery to home.
Cons:
• You need to involve into product packing and labelling.
• You need to forward inventory to Amazon warehouse. Less 
stock more shipping fees.
Buy Wholesale And Sell 
Retail
No big companies sell their stock directly to retailers. It is 
because all retailers do not have a big space or warehouse to 
keep products and budget to pay for it in a single go.
There is a distribution channel where companies or factories 
source their products to wholesalers. These wholesalers buy 
big quantities from them and allow retailers to buy limited 
quantities from them. . Once you have prepared the list of 
selected items to start selling on Amazon, start your hunt to 
find wholesalers.
Pros:
• Moderate MOQ.
• Easy shipping to Amazon warehouse directly by the supplier.
• Good discount
Cons:
• No branding, you are selling a retail merchandise of other 
brand.
• Listing hijacking
A Private label business is one of the best launching 
businesses for Amazon FBA. It gives your product an unique 
identity and a unique selling preposition to compete with the 
competitors.
Supplier finding sites such as Alibaba, Aliexpress, DHgate, and 
1688 are best in the online industry to find such suppliers 
quickly and easily. You will get all that done with a decent MOQ 
sometimes for under 500 units as well.
Pros:
• Packing, packaging, designing, and labelling from manufacturer.
• Product stocking at much affordable quote
• Wide opportunity to establish your private label name as a brand 
in the industry.
Cons:
• High/moderate MOQ
• High investment
Calculate Profits 
(Free Profit calculator 
sheet)
You get the quotations from suppliers and manufacturers. 
Now, it is time to check whether a product worth a launch or 
not.
Add MOQ, supplier price, shipping fees, Tax and other 
details to sheet. Check how much profit a product is leaving 
on every unit. Go for a product giving at least 100-150% ROI 
or $10+.
Call A Sample To Your Address 
And Test It
Think like your customers. Will you believe on images and 
description available on supplier’s listing? Is it a genuine 
supplier, I am dealing with?
Better not to keep a single loop hole that can risk your 
investment. Ask the supplier to send a sample product to 
your home address. Once you receive the product, test the 
product and its durability. Take suggestions from family 
members and friends. It will help you launch a better product.
Negotiate And Make A 
Shipment Plan
Once you made a decision, it’s time to do a final discussion 
with the supplier. Negotiate with supplier for price and MOQ.
 
Ask the supplier regarding the shipment plan. They will tell 
you the box size, cartoon size, freight forwarder details, and 
shipping carrier information. All this information would be 
required for making labels in seller central. 
Product Inspection
A visit to another country for product inspection is not 
everyone’s cup of tea. But, one can afford to spend on 
inspection company in the hometown of the supplier.
 Research an inspection company either on Google or 
Freelance marketplaces and get your inventory 
inspected for quality assurance. 
Get Your Inventory Shipped 
To The Amazon Warehouse
Once you have finalised the discussion with the 
vendor, open seller central and make a new Amazon 
FBA product listing.
Once, you made the listing prepare label, download of 
barcodes and labels. Supply it to the supplier, they will 
dispatch it to the cartoons and unit boxes. 
Optimize The 
LThise tsihnipgment from supplier to Amazon takes between 7-
30 days. So, this is the time to improve Amazon store. Do 
Amazon listing optimization, and prepare a good product 
launch strategy.
Start with keyword research for Amazon product. Add 
relevant keywords to product description, bullet point, and 
title. Also, add partial match words to back end terms. It 
will help you gain more visibility on Amazon searches.
Product images keeps equal value in listing optimization. Add 5-7 
relevant product pictures to the listing. You can ask supplier to provide 
it. Use Helium 10 chrome extension. It analyze and show listing 
optimization score.
Prepare Email 
TTehemre pshlaoutled sbe  a communication between a seller and a 
buyer. Amazon limits the FBA seller and customer 
communication to seller central only. But, it is enough to 
establish a communication channel.
 Prepare Amazon email templates to interact with your 
customers. When you get an order, shoot an order 
confirmation template to the customer within 24 hours. 
Start Promoting And 
OSneclel iynougr shipment reached the warehouse, your 
listing will become active. It is time to start promoting 
your listing and sell it to a wide Amazon audience.
Amazon has various tools for you to grow your 
business. Run Amazon sponsored ads, throw sweet 
deals and discounts to your customers during product 
launch.
• Amazon PPC
Amazon had in-built PPC services for sellers and brands. You 
can make a campaign and get your listing visible on search 
pages. Target keywords that your customers searches on 
Amazon. Optimize your PPC campaign and get them land on 
your listing page.
• Social Media Influencers
You can take help of influencers in your industry. Find good 
social media profiles with good and engaging follower base 
covering relevant content. Make a deal and do paid 
partnership with them.
• Social Media
Hire a VA or start social media channels for your business. Do 
post content regularly and build a follower base for your 
business. Put catchy deals with discount codes to attract 
users. Make social media ad campaigns and run regularly.
• Join Groups And Communities
Facebook and Reddit are treasure to FBA sellers. Join FBA 
Reddit communities and Facebook groups. You will get 
access to Q/A sessions, case studies, and new marketing 
strategies.
Strategy To Get Initial 5 
RERePviews
The ERP stands for Early review Program. Amazon helps 
new sellers in getting initial reviews. Amazon appeals to 
genuine customers to buy and review it.
It costs $60 for up to 5 initial Reviews. There is no guarantee 
of the program that you will get all 5-star reviews. If you are 
sure, your product is of the highest standard and good quality, 
then enroll for ERP.
Other Way To Start FBA Business
Buy Pre-Owned Amazon FBA Seller 
Central Account
You can start selling on Amazon without above methods. If you 
have good budget, you can buy existing Amazon businesses. 
Flippa, Empire flippers etc are best sites to source Amazon 
FBA business for sale.
Discuss with sellers, audit their statistics and get the deal 
done. This way you can get a good selling product in hand with 
supplier details.
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SITE
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THANK YOU!