Looking for a way to make extra money? One of the many ways people recommend is to sell on Amazon.
But, how do you do that exactly? Do you just list that you’re selling things and send everything to individuals? What is Amazon FBA? Is that the way I need to go?
What Is Amazon FBA?
Amazon FBA is Fulfilled By Amazon. Basically, it means that though you’re the one selling the item Amazon is fulfilling that order. They will ship the order to the customer, deal with any customer service issues, as well as hold your inventory in the interim.
Why Would You Want To Sell Amazon FBA
Amazon FBA sounds great, and it is, but keep a few things in mind. Amazon takes fees every time you sell something, and they take even more fees if they are the ones that are fulfilling the order. On top of that if your inventory sits in their warehouse too long they start charging you additional fees. So why would anyone want to sell Amazon FBA when you can make more money doing Merchant Fulfilled (where you ship to customers yourself)?
Well, if you are only going to sell a few things a month then you should do Merchant Fulfilled. But, if you’re going to be sending in hundreds of items monthly, do you want to store all of those things in your house, package each individually, send directly to every customer with your address on it?
Also, when a customer returns an item, it will come back to you instead and if you don’t have another to exchange it for then you are just out the money whereas Amazon may be able to keep the customer happy and not lose you money.
How Much Can You Make?
One of the big questions I get is “how much money can you make from selling Amazon FBA”, and the answer is it depends. With everything in life the more you put into it the more you get out. If you have only $100 to invest in inventory you may want to wait till you have more as the shipping fees will eat up a lot of your profit.
I recommend starting with no less than $500 worth of inventory and that you send in no less than that in. Also, make sure that you’re set to make at least 50% ROI or it’s not going to be worth it.
At first, it’s going to feel like you aren’t making any money at all, but after a while, you get the hang of things and you can make an extra $100 a month of an extra $10,000 it depends on the work and capital you put into it.
How Do You Get Started?
First, sign up to be an Amazon seller, then download the app and go to retail stores in your area looking for things to sell. It’s going to feel like a treasure hunt at first and you’ll be excited. If you find something worth buying you’ll feel great, if not you’ll become discouraged. Don’t worry, I’ve been doing this for nearly 2 years and there are days I come home with nothing too.