How to start an amazon FBA business

 

Amazon FBA is one of the most popular e-commerce methods launched by Amazon, which allowed tens of thousands of Internet users to be merchants without the need for large capital or the need for shipping warehouses and warehouses for the goods and products that are sold.

What is Amazon FBA?

Amazon is the largest e-commerce company in the world, and in fact it is not one company but more than 70 companies that deal in selling and shipping through the Internet, and in the recent period Amazon entered the Arab region and purchased the Souq.com site, which was considered the largest site For electronic sales in the Arab region, the company has launched the Amazon FBA platform to attract a greater number of customers to it.

FBA stands for Fulfillment by Amazon, and it is an idea launched by Amazon in 2006. This idea is based on the fact that it allows you to buy the products you want in the quantities you want and then ship them to Amazon warehouses, and therefore you do not need special and expensive warehouses for the goods and products that you want. Store them, and after shipping these products to Amazon warehouses, the company, on your behalf, will package the product and ship it to the customer you want to sell the product to, in exchange for a commission that Amazon collects from you.

Amazon FBA allowed many Internet users to practice e-commerce, buying and selling through the largest e-commerce company in the world, Amazon.

Also read: What is Drop Shipping, what are its benefits, and how to start selling through it?

Amazon fba and traditional trade

In the world of traditional trading there are three types of traders:

B2B Merchants: They are wholesalers who buy products in large quantities and then store them in their warehouses and then sell them to smaller merchants.

B2C merchants: They are retailers who buy from the wholesaler in specific quantities and then sell them by piece or more as desired by the customer.

Importers: They are larger in size than wholesalers, as the importer travels to the country producing the commodities that he wants to deal with, which is mostly China because it is the largest and cheapest country in the world as well, then the importer buys the product in large quantities and ships it to his country and leaves it in Warehouses and stores, then sells them to wholesalers.

Advantages of Amazon FBA

Amazon FBA allows you, in short, to be one of the importers, but without the need to travel to the country that produces the goods or the need for stores and warehouses for the product. Rather, Amazon performs this task on your behalf and rents its warehouses to you and ships them to customers who order the commodity via the Internet, for a fee. It is accepted in the world of e-commerce.

The Amazon FBA platform is characterized by the fact that it offers many storage options, as the company has warehouses in America, warehouses in China, and warehouses in Germany and Europe in general and in many other countries, and thus it saves a lot of time in shipping the product when it is requested.

What is required to be an Amazon FBA subscriber?

In fact, you do not need much to become an Amazon FBA customer, which is simply required of you:

A computer or laptop to deal with.

Direct internet connection.

Medium capital and it is not required that the capital be large.

To open a seller account on Amazon FBA.

A good study of the commodities and products you wish to deal in, the state of the market, and the best places to sell them.

Searching for merchants in the country from which you want to import the product, which is mostly China, and taking care of this step is of high importance so as not to fall victim to a scam or deal with a merchant who deals with the dropshipping system.

Search the Internet for the best price for the commodity and negotiate with the merchant to obtain the best price advantage in order to be able to compete and promote the product.

An example of a sale via Amazon FBA

I logged into the Amazon account as a customer who wanted to purchase a specific item from Amazon, which is a wireless gaming headset.

The price of this headphone on Amazon is 26 euros, and it is written next to the headphone Prime, which means that it is in Amazon warehouses, meaning that the headphone is within Amazon FBA.

When entering the Alibaba website, which is a Chinese website that specializes in selling products and commodities at a wholesale price, I found that the headphones with the same specifications and shape have a price of 8 euros if you buy 500 pieces of the product.

This price is not a final price, but it is possible to enter into negotiations with the merchant to reach the lowest possible price.

Here we have a headphone, the selling price for the customer on Amazon is 26 euros, and its wholesale price is 8 euros, meaning that the difference is 18 euros.

In the case of purchasing through Amazon FBA, the company ships the product to its warehouse in the country that I specify, stores it, packages it, and delivers it to the customer upon purchase.

Let's assume that each piece costs 2 euros for shipping, and Amazon FBA also gets a commission and packaging around 6 euros.

In the end, you will find that the item costs: 8 purchase price + 2 shipping cost + 6 Amazon commission = 16 euros, while selling it is at a price of 26 euros, so if you calculate taxes for the country through which you sell the product, you will find that the profit of one piece may exceed 6 dollars profit Net, and with it you do not need stores, warehouses, or travel and accommodation costs.

Countries that accept dealing with Amazon:

Albania Finland Netherlands

Algeria France New Zealand

Angola Gabon Niger

Argentina Georgia Norway

Armenia Germany Oman

Australia Greece Panama

Austria Guinea Paraguay

Azerbaijan Haiti Peru

Bangladesh Honduras Philippines

Belarus Hong Kong Poland

Belgium Hungary Portugal

Benin Iceland Romania

Bolivia India Russia

Botswana Indonesia Senegal

Brazil Ireland Serbia

Brunei Israel

Singapore

Bulgaria Italy Slovakia

Burkina Faso Ivory Coast Slovenia

Cambodia Japan South Korea

Cameroon Jordan Spain

Canada Kenya Sri Lanka

Chad Latvia Sweden

Chile Liechtenstein Switzerland

China Lithuania Taiwan

Colombia Luxembourg Thailand

Costa Rica Macedonia Togo

Croatia Madagascar Trinidad & Tobago

Cyprus Malaysia Turkey

Czech Republic Mali Uganda

Denmark Mauritius Ukraine

Dominican Republic Mexico United Kingdom

Egypt Morocco United States

El Salvador Mozambique Vietnam

Equatorial Guinea Namibia

EstoniaNepal