Ultimate Guide to Starting the Amazon FBA Business
The Ultimate Amazon FBA Guide: A Guide to Get Started
If storage, shipping and customer service and the processing of returned goods are carried out by Amazon, this is called Amazon FBA (Fulfillment By Amazon).
This service also enables private sellers to sell products on the Amazon marketplace and build a successful Amazon FBA business.
Within our Amazon FBA instructions the individual steps that are relevant to implementation should be discussed in more detail.
Amazon FBA guide to get you started
Amazon FBA product search
If you sell on Amazon want, then the product search is at the beginning - this is the basis for a successful trade on Amazon.
Particularly suitable are niches in which there are products with a high sales potential and only a few competitors exist.
Since the selection of a suitable product has a significant influence on the success or failure of Amazon, the product research should be given a lot of attention.
The motto here is: the more specific the niche, the higher the chances of successfully displacing competitors.
Here you can find out exactly how to get a good one Find Amazon FBA Product can. Research tools that show sales, margins and much more are essential for product searches.
We have had good experience with the tools Helium 10 and made Jungle Scout.
Check the legal conformity of the products
Within the European Union there are regulations and guidelines that must be adhered to.
As soon as goods are imported from a non-EU country, you have to ensure the safety and legal conformity of these products.
The products must not endanger health or the environment! More detailed regulations can be found on the website of the Federal Office for Consumer protection.
Many manufacturers will assure you that they have already taken care of all the necessary certificates.
However, since in the end the burden of proof lies with the importer, you should secure yourself with written confirmations when checking the legal conformity!
The following guidelines are relevant:
- Product Safety Act
- CE marking
- RoHS directive
- WEEE directive
- LFGB (Food and Feed Act)
- REACH regulation
To sell your own products on the Amazon marketplace, you need to register your own business.
This is a very time-consuming process that can take a few weeks to months, depending on the city.
So it is advisable to take care of the registration of the commercial activity very early.
The registration as an official trader must be submitted at the latest before the first purchase from a supplier.
In our article you can find out what you have to pay attention to when registering a trade for your Amazon FBA businessAmazon FBA Business Sign.
For customs actions within the European Union, it is necessary to apply for an EORI number (Economic Operator's Registration and Identification).
This is used for the clear identification of economic operators and is intended to facilitate automated customs clearance in this way.
The customs officers can then assign your imported goods to your company. You can use the EORI number here apply for.
Customs tariff number
A customs tariff number consists of eight digits and is used to identify the flow of goods. Each product is assigned to individual categories, some of which differ in terms of taxation.
This HS code makes it possible to check goods for possible export restrictions and to find out the customs duties to be expected upon import.
In most cases, the supplier can provide information about the correct customs tariff number, otherwise the HS code can also be quickly obtained via this portal determine.
Import sales tax
Imports of goods from non-EU countries with a value of more than € 22 are generally subject to import sales tax.
The standard tax rate is currently 19% and is reduced to 7% for certain goods. You can find out whether a tax reduction is possible for the import of goods from the customs tariff number that has just been determined.
The total charges, consisting of customs duties and import sales tax, can also be conveniently here to calculate.
Occasionally, proof of payment must be submitted for customs clearance. This will be compared with the invoice on your bank statement.
To avoid problems with customs, these amounts should be the same. Therefore, never accept offers from the supplier if they want to declare a lower amount on the invoice!
Create an Amazon Seller Account
An Amazon seller account is required to use the marketplace as a sales platform.
In addition to being registered as an official trader, you also need an ID, a bank account and a credit card.
You have the choice between the Amazon Seller Basis and the professional tariff. How the two options differ and what else you should pay attention to is covered in our article Create an Amazon Seller Account explained in more detail.
Select shipping service provider
A shipping service provider takes over the transport of your goods from the supplier to a desired destination.
Depending on which country your supplier is in, different parcel services come into question.
The largest providers are DHL, EMS, FedEx, UPS and AirMail. If you order products with large dimensions or simply large quantities of goods, there is no way around sea freight.
In this case, we recommend working with a logistics company. However, this variant is rather unsuitable for beginners, as the dangers and challenges increase significantly with sea freight.
Create an appealing listing
The listing is your sales area on Amazon, which is why you should create this with care.
Here you present your product and try to draw the attention of many users to your ad.
To create new product pages, you also need a GTIN (Global Trade Identification Number) such as an EAN (European Article Number).
You should find out about this from the supplier. In addition to this number, the following points are important for a good listing:
- Professional pictures
- Appealing / Amazon Keyword optimized headline
- Ordinary / keyword-optimized detailed description
The Helium 10 tool mentioned above is ideal for searching for suitable keywords.
For example, this can be Helium 10 Cerebro Tool to reveal your competitors' keyword strategies.
Use this knowledge and optimize your listing for the really relevant keywords! In addition, the Amazon Research Suite offers an unbelievable range of services, from product research to creating a listing to automated customer communication Helium 10 FollowUp a lot of work decreases.
You can find a detailed comparison of the two FBA Amazon tools here: Helium 10 vs Jungle Scout.
After the above points have been implemented and the first buyers for your product have been found, the shipping will follow.
Please note the packaging law that came into force on 01/01/2019. This law ensures that online retailers have to pay fees for the packaging they place on the market as part of a dual system.
However, this point only needs to be observed if you fill goods in packaging that ultimately end up as garbage.
If you commission a service provider with the packaging, he or she has to ensure legal licensing and registration.
Buy GTIN number
Theoretically, you can also buy products without using Amazon products GTIN / EAN number to sell.
In that case, however, you have to use Amazon's internal number system. But if you also want to sell your products through other sales channels, you will run into problems.
It is therefore advisable to buy a valid GTIN / EAN number right from the start.
Manage Amazon inventory
In order to be successful on Amazon in the long term, as a seller you have to manage your inventory properly. You can find tips on this in our article on Amazon Inventory Management.
We hope that we were able to help you with this article and give you a good guide for starting your own successful Amazon FBA business.
If you have any further questions, please send us an email to [email protected] or comment directly below this post.
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