Open the doors to earning money online! Amazon FBA is a unique money-making opportunity that allows one to earn income as either part-time or full-time flexibly. Imagine earning some extra income without having to leave a stable job. Although I earned a meager $79; I only spent a few hours of my time experimenting!
What is Amazon FBA?
It means Fulfillment by Amazon. You send products to Amazon, and they store it in their warehouse until the items are sold. The largest benefit is that Amazon handles each order. I sent in a total of 17 books. If I handled orders myself, I would have to ship each item to a different customer (unless by chance they ordered multiple items). Additionally, I would have to send the items right away and rush to the post office. Using FBA saves you time.
Amazon takes a certain monetary cut depending on what services you choose. Unfortunately, Amazon charges you even if you sell nothing. They charge for warehouse storage, a weight handling fee, a pick and pack fee. Additionally, you must pay the shipping fees. Learn more about Amazon FBA pricing here.
Below are two of my financial statements from Amazon.
The image on the left displays the total Amazon fees subtracted from my revenue. The costs vary per unit, but the goal should be to sell items worth at least $20 to profit. My total product sales earned $200. Amazon took a cut of $105.98, while I earned $94.62. I spent about $15.00 on shipping costs. I made $79!
How do I get started?
Step 1: Create an Amazon Seller Central Account
Go to Amazon Seller Central . There are two types of accounts. “Sell as a professional” costs $39.99 a month+ other selling fees, but it allows you to sell more than 40 items a month. The “Individual” account is free. It does not have a monthly rate, but Amazon charges you $0.99 a sale+ other selling fees. I used the individual account, and that is why Amazon took such a “large” fee from each item. If you’re trying this as an experiment, I highly recommend just opening an individual account.
Find items of value to sell. I recommend selling books or CDs that you can sell for at least $20. Additionally, pay attention to the “sales rank”. This refers to how long ago the last item sold. If the item sold a second ago, that number is going to be very low. The lower the sales rank, the faster it will sell. Sell items with as low a rank as possible.
How do I find the sales rank of an item?
There is a method to scan the barcode if it is a book, but I searched the amazon store for the item I was selling. One book I sold was Beloved by Toni Morrison. Sales rank information is just above the reviews section. Below are images of the sales rank.
When selecting items for your sale, make sure it’s allowed! Unfortunately, Amazon has some categories that are “blocked” unless you are approved to sell, which is only an option if you have a “Professional” seller account. The following categories are open and do not need approval: Video games/video game consoles, toys/games, tools/home improvement, sports (collectibles are blocked), Software/computer games (some specific items need approval), personal computers, outdoors, office products, musical instruments, music like CDs, and records, Industrial/Scientific, Home/garden, consumer electronics, electronic accessories, cell phones, camera/photo, baby products excluding clothing, Amazon Kindle device accessories, and Amazon device accessories. Click here to see the full page of closed/open Amazon Seller restrictions.
What I would do differently:
I underestimated the Amazon seller and FBA fees. If I pursue this again in the future, I would sell higher value items. I sold a few textbooks, but I should not have sold anything under $20. Some of the novels I sold, such as Beloved by Toni Morrison, did not add to my profits (breaking even). One novel I sold for $5.00 and the Amazon FBA/seller fees totaled $5.00.
How did I hear of Amazon FBA?
I stumbled across some old books in my family basement. I had just finished budgeting for the upcoming summer. I set a savings goal, and definitely realized I needed to watch my spending more closely. Therefore, I was extremely eager to earn any extra money possible, especially passively. My family has a couple hundred books in our basement, and I had some old textbooks to sell.
My final reaction:
Amazon FBA is a great way to earn money, if you have the time for bargain-hunting or inventory stocking! I have other favorable ways to make money, but learn more and try it out! I would recommend selling items worth at least $20 to make profit.
Additionally, cut costs wherever you can. I used two boxes we had lying around to ship items.
Resources: I watched these videos before I placed my first order