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How To Start An Amazon FBA Business With Little Money

How To Start An Amazon FBA Business With Little Money

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Many people think that you have to have a rather generous budget to start an Amazon FBA business. However, for those who are Amazon FBA beginners, accessing these funds isn’t always doable.

Did you know that there are ways that you can begin selling even if you are on a budget? Because you have less capital, you will need to be sensible and methodical when thinking about how your money is going to be spent. 

In our guide below, we have covered everything that you need to know about starting an Amazon FBA business with little money. 

What Resources Do You Need To Start Your Own Amazon Business?

Amazon FBA resources

When it comes to starting your own Amazon FBA business, there are three main categories that you will need to allocate money towards.

This includes your inventory ( i.e the products that you are going to be selling, tools and supplies, and training if selling on Amazon is something that is completely new to you. Below, we have taken a closer look at how each of these may affect your business. 

Think Carefully About Your Inventory

The products that you sell are going to influence how profitable your business is. There are lots of different products that you can sell on Amazon but some are going to be better suited to smaller budgets than others.

It is worth researching the best selection of products that are not going to cost a lot of money. When devising your budget towards inventory, you will need to think about shipping costs, brand names, and competition. 

Smaller, lightweight products do not tend to cost as much to ship. It is also recommended that you avoid selling seasonal products but build up an inventory that consists of products that are in demand. This is because seasonal products are not going to be consistent sellers.

Inventory Management for Amazon business

In fact, there will likely be a few months throughout the year where they are frequently purchased and then other months where they aren’t. Moreover, you should also think about brands and how they can affect your budget.

Products from well-known brand names tend to be the better sellers, however, they will cost more to stock up on and they also tend to be more heavily sought after by competitors. 

When building up your inventory, it is also recommended that you invest your money in a few different items rather than one single item. In doing so you are going to reduce risk.

This is because, if one product doesn’t sell very well, you will have the other products to fall back on. Also start by investing in smaller quantities, and if they prove to be good sellers, as you start to make more of a profit you can start to expand your inventory. 

Now you may be wondering how you can work out which products are going to be the most profitable.

It is worth utilizing other platforms such as Alibaba to gain an understanding of the profit margins associated with different items. From here, you can then work out what products are going to be best suited to your business. 

Invest In The Necessary Tools And Supplies

Amazon tools and software required for selling

You do not need many tools and supplies to start your own Amazon business as most things will be done online. However, there are a few things that are going to make it easier for you to establish a successful business.

A computer, tablet, or smartphone is going to be an important resource. This will allow you to list products and monitor orders and sales. You will also need some supplies for packing and shipping the orders.

As you are starting with little money, you don’t need to spend a lot on a top-of-the-line printer or labels, but make sure that the one you choose is going to be efficient. You will then need boxes to put the products into, along with tape to secure them. 

Participate In A Training Course

Amazon training and courses for beginners

If you are completely new to selling on Amazon, it may be beneficial for you to participate in a training program/ course as this will equip you with all of the skills that you need to run your business.

There are several different training programs that you can enroll in so it is worth browsing through the different options until you find the best option for you.

The cost of the training course can differ depending on who it is provided by. As such, it is important to find one that provides you with the training that you require without breaking the bank.

What Other Costs Do You Need To Consider?

Although your inventory, tools, and training are the main costs that you need to account for, you will need to leave yourself with enough money to cover the additional costs of the fees charged by Amazon as well as possible legal fees.

Furthermore, you will also need to consider the costs associated with establishing your own brand and setting up a professional Amazon account. 

A great way of spreading awareness of your brand is to grow your presence on social media. This is also cost-effective because you don’t have to pay much for social media.

You can expand the visibility of your business whilst also making prospective customers aware of any promotions that you may be running. 

What Are Amazon Fees?

Starting to sell on amazon for beginners costs

When you start selling on Amazon, there are two different fees that you will need to cover. This includes the Amazon referral fee and the Individual product fee.

The referral fee is essentially a commission fee and it is something that Amazon charges whenever you sell a product. As a seller, you will also have to pay a fee for each item that is sold. 

How To Start Selling On Amazon

Below, we have identified a few simple steps that you can follow to start selling your products on Amazon as a beginner

First, you will need to decide what products are going to make up your inventory. Once you have determined this, you can then move on to the next step. 

Next, you will need to create and register your Amazon seller account. A basic, individual Amazon account is free to set up, however, those that are more advanced may incur an additional fee. 

The next step involves uploading your listings to your Amazon account. This will then allow the customers to see what products you have on offer. Doing this is a fairly straightforward task. Simply log onto your Amazon account and then visit the inventory section.

Here you will then need to click on the tab that reads ‘’add a product’’. Depending on the product that you are intending to sell, you will likely find that it already exists so you simply need to add your name to it and also write the product description. 

When you begin receiving orders, it is then your responsibility to organize the delivery. After receiving the order confirmation you will need to pack the products before distributing them. Once you have delivered the product, you are then going to receive your payment. 

Final Thoughts

Selling products on Amazon can be a profitable business and as you can see, you do not need a lot of money to set up a successful Amazon business that attracts customers.

Planning is going to play a crucial role when it comes to deciding how much of your budget you are going to allocate to each aspect of your business. 

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