How to sell on Amazon FBA

You may have just discovered the Amazon FBA for the first time. You now want to make money online by selling on Amazon FBA. In this article, we will discuss how the Amazon FBA works.

What is Amazon FBA?

Amazon FBA stands for Amazon Fulfilled-by-Amazon. It is a platform offered by Amazon where entrepreneurs can create their own online businesses and earn money from their homes. 

When you join the Amazon FBA, Amazon will do majority of the work for you. If you have never used the FBA , you have come to the right place. Keep reading!

How Amazon FBA Works

The Fba works in the following simple steps. 

#1: Setup FBA

If you have a seller account with Amazon, you can simply add FBA to it. If you have not created a seller account with amazon, you can create one today. 

#2: List your Products

This is the step where you send your products to Amazon. The products will be stored in the Amazon fulfillment centers . See these as warehouses run by both employees and robots. 

#3: Customer Places an Order

A customer who is interested in your product has to place an order on the Fba Amazon. Once the order has been placed, Amazon will take over handling of the transaction. 

Note that Fba has automated this process. 

#4: Prepare and Ship the Product

Your Fba products must be prepared ready for shipping to the customers. Amazon takes good care of your products while kept in their warehouses. In any case a product is damaged while in the warehouse, you will be reimbursed the retail price of that product. The preparation in this case involves picking the product from the shelves of Amazon fulfillment centers and packaging it in a box. Amazon Fba finally ships your product to the customer. 

#5: Follow Up

Once the product has reached the customer, Fba Amazon has to do a follow up to make sure that everything with the order is okay. If a need arises, Amazon will also take care of the need. Some of the needs that may arise include returns of orders, refunds and customer inquiries. 

What is your Work?

From the above discussion, you must have noticed that the Amazon Fba is handling nearly everything on your behalf. However, Fba will require you to perform the following tasks:

#1: Select Products- Fba takes the responsibility of handling all the back-end work for you, but you have to make a decision on what to sell. Keep on reading, we will be telling you what to sell on Amazon Fba.  

#2: Stocking- Amazon Fba will notify you when your stock is running low. It will then be your responsibility to know how to stock up the product. 

#3: Promote and Advertise- You will find millions of similar products like yours for sale on Fba . It is your duty to make sure that your product is known. This is pretty easy!

Amazon Costs

When selling in the Amazon Fba, you will incur a number of costs. If you create an individual account, a deduction of $1.0 will be made for each product sold. This type of account is free. If you create a professional seller account, you will pay a fee of $39.99 each month. No deductions of $1.0 per product sale on this type of account. This makes it cheaper if you can sell more than 40 items per month.


For products belonging to most categories, Fba will deduct a referral fee of 15% on all sales. Amazon Fba will also make deductions to cater for shipping of your products. You will also incur inventory costs which do vary. 

What to Sell on Amazon FBA

The Amazon Fba does not provide you with a particular way to sale on its platform. Intead, you are provided with a number of options to choose from:

#1: Arbitrage- You can find low-priced products from other online stores or even from retail stores and resell them at a higher price on Fba

#2: Wholesale- This involves buying discounted goods in bulk and reselling them on Fba Amazon at a higher price. 

#3: Used Book Sales- You can purchase used books from yard sales, book sales and resell them at a higher price on Amazon Fba

#4: Private Label*- You can discover and brand your own products then sell them on Fba . You will exercise control over the product. 


Before you can begin to sell on Amazon Fba , you must have an account. If you have an Amazon seller account, you simply have to add Fba to it. When selling on Amazon Fba, Amazon handles most of the work on your behalf. However, you are required to do some tasks such as choosing the items to sell and making sure that there is enough stock for each item.