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  • Ayub Khan

How to Sell on Amazon for Beginners in 2020? (Ultimate Guide)


Amazon is an amazing opportunity in 2020 for both sellers and shoppers. With Covid-19 looking to stay on for longer than expected, E-commerce is the only savior for the people in need. Stats speak for themselves as Amazon becomes a Trillion dollar company during the pandemic where other businesses are struggling to keep up with the pace. The addition of the FBA (Fulfillment by Amazon) model by Amazon has given a chance for sellers to grow their businesses with the trillion-dollar company!

Jeff Bezos the CEO of Amazon currently has a net worth of $200 Billion in shares of the trillion-dollar company, meaning he has made $800 Billion for investors, sellers, and others.

The company looks to keep growing and it would only make sense for you as a seller to take advantage of it. Learn how you can leverage the power of Amazon to gain financial freedom for yourself!


What is Amazon FBA?

FBA or Fulfillment by Amazon is one of the most cost-effective models to sell on Amazon.

The FBA service includes storing inventory in an Amazon warehouse, packaging your products, delivering the products to the customer's doorstep, and also handling customer service all done by Amazon for you. Although Amazon charges a fee for this service, it is still cost-effective compared to the other services you might have to use for storing, packing, delivering, and customer service.


How to sell on Amazon successfully?

The only key ingredient in selling successfully with Amazon or any other business is understanding cashflow. Even if you start with as little as $500 as the starting capital and you understand how cash flow works, you are doing far better than sellers who start massively with $20,000 without understanding cashflow.

How to start with Amazon FBA business?

This is the most ideal business model for beginners as Amazon will do most of the work so you can focus on getting your feet wet with E-commerce. This will be dealt with in detail providing a step-by-step guide so you can seize the biggest opportunity there is in E-commerce. Stick along and learn everything you need to do to start a successful business with Amazon using the FBA model.


Related: 5 things to consider before starting with Amazon FBA




1. Create a Business Plan

  • You have to have a plan in place whether it is with Amazon or with any other business. You don't need to know everything (because you can't duh!) but you need a foundation to build your business on.

  • An Ideal starting plan should include Budget, The End Goal, Product Category, Marketing and sales, understanding competitors.

Refer to the example below to get an idea.

Budget: $1200

The End Goal: To have a few extra bucks at the end of the month to cover expenses/ Or create a multi-million dollar business.

Product Category: Toys / Kitchen and supplies

Marketing and Sales: Invest 10% of the budget for PPC (Pay Per Click) advertisement

Understanding competitors: Spying on sellers who sell similar kinds of products - Their launch history, their selling strategy, the amount invested by them for PPC, etc.

There is a lot more than this but for starters, this should be enough.


2.Choose a Marketplace


  • It is highly recommended that you start with the USA irrespective of you living in it or not.

  • The USA is the biggest marketplace for Amazon. It has low barriers to entry and is easy to scale compared to other marketplaces. You can sell much easily in the USA as an international seller. Other marketplaces have stricter rules like in India you need to be a citizen to sell on Amazon.

  • Once you get your feet wet with selling on Amazon USA you can explore other markets like Canada, Germany, etc which are some of the promising places to sell on Amazon.

3. Product Research

  • The most important step in your Amazon journey is to find the right product. This will either make or break your business.

  • Most often you will see people ask you to find a niche. It is not always possible for someone starting out to understand which niche would be perfect for them. Also when starting out your goal should be to understand the process of how everything works with Amazon.

  • For best product research tips Click here.

Find the steps to take for successful product research -

Step 1: Purchase a Product Research tool (use a free version when starting out)

Step 2: Find markets with unfulfilled needs (Example: products with bad reviews)

Step 3: Understand how you can fulfill the demand (changing the shape of a product, Changing utility features, etc)

Step 4: See if your competitors are making any profit using product research tools

Step 5: Validate your product idea and market demand

Step 6: Use websites like Kickstarter.com, trendhunter.com, etsy.com, and pinterest.com to get product ideas

Step 7: Make sure you have enough resources for product inventory

Step 8: Check for Amazon Restricted Products and Amazon Gated Product Categories and avoid these


Related: How to Level-Up on Amazon with Helium 10?


4. Sourcing

  • Sourcing can be challenging with Covid-19 around but not impossible. You can still source products from China using platforms like https://www.alibaba.com/ and http://aliexpress.com/.

  • However, if you are looking for alternates to China you can check the Indian version of Alibaba which is https://www.indiamart.com/.

  • Alternatively, if you want to find USA based suppliers you can follow the video below -

  • Once you have selected the supplier of choice, start ordering samples.

  • Samples are a great way to understand the quality of the product and can help in finalizing the right supplier.

Step 1: Send a quotation to the selected supplier

Step 2: Receive pricing, calculate profits(Use Amazon FBA Calculator)

Step 3: Negotiate for better rates and make payment

Step 4: Confirm arrival dates


5. Create a Listing

  • You have to create a listing on your Amazon Seller account so customers can find your product.

  • A listing is the product page which includes the product title, description images, and price.

  • A good listing should include at least 7 high-resolution product photos. 5 Bullet points and well-researched keywords.

  • One of the best software that you can use to write a listing is Helium 10.

Step 1: Start with Keyword research. (A set of keywords that would best describe your product)

Step 2: Analyse what keywords your competitors are using

Step 3: Use the researched keywords appropriately in writing titles and product descriptions

Step 4: Make sure your product description has at least 5 bullet points

Step 5: Get your product photos done professionally. (high-quality images are required to have an optimized listing)


6. Launch Your Product

  • Launching your product will set the path to how your product is going to perform.

  • Remember whenever ranking for any keyword the goal is to be on the first page. This is where most of the sales happen.

  • Your rank on the first page is determined by the overall performance of the product including the number of sales, reviews, etc.

  • When starting out your product will most definitely not be on the first page. But you can boost your page ranking by following the below strategies.

  • PPC - Pay Per Click or also known as sponsored or advertised product. Basically, you pay a certain amount to Amazon to rank your product higher in the search results. The price completely depends on the type of product you are selling. Your product can either rank on the top, middle, or bottom of the page. Every time a customer clicks on the sponsored product you are charged a fee by the Amazon.

  • Giveaways - It is like a contest of X number (you get to decide the number of products you want to giveaway) of products given at a massive discount for you to get sales velocity.

  • Influencer marketing (optional) - You can get in touch with YouTubers, Instagram models, etc who have a massive following to use your product and promote it. This is highly effective but the cost for it varies from influencer to influencer.

  • Facebook & Instagram advertisements (optional) - You won't require this when starting out but definitely an effective strategy to get more sales and rank higher. Only invest in this if you have the knowledge, or else higher a freelancer from websites like Fiverr.com or Upwork.com to do it for you.



7. Inventory Management

  • As an Amazon FBA seller, inventory management is the biggest skill you can learn.

  • Forecasting your inventory on when to order your stock and how many to order is vital.

  • Correct forecasting is gonna maintain the cash flow in your business which is key to the profitability and growth of the business.

  • However, if done incorrectly can tie up too much cash and can also lead to additional storage fees by Amazon if the stock is not sold.

  • Once you start having consistent sales it becomes much easier for you to handle inventory as you have previous data to predict the future need of stock.

  • If a product usually takes 2 months to reach the Amazon warehouse you can negotiate that with the suppliers to decrease the timeframe. Having a good relationship with the supplier can help in getting urgent inventory requirements.

  • To understand inventory management in depth, join the free webinar here.

8. Track, Optimize and Scale

  • This is a continuous process and is key for any business to keep growing.

  • Optimizing your business can reap high benefits like speeding up the pathway to millions, increase the resale value if you plan to sell, or just providing a steady passive income if your goals are much simpler.

  • Use tools like Helium 10 or Viral Launch to get statistics.

  • Optimize your listings by adding high-quality images and videos to engage more customers.

  • Take feedback from customer reviews and make necessary changes to the product.

  • Add more products to your catalog to grow your business further.

  • Hire a VA (Virtual Assistant) to take care of the business to free up your time.

  • Create raving fans by providing exceptional product quality.

  • Create a website and social media pages and engage with your fans.

  • Explore other niches and keep growing.

Final Thoughts

Starting with Amazon FBA can sound very exciting but at the same time, you need to understand it is a business that requires effort (at least in the beginning stage). Starting any business is tough and requires determination.


Hopefully, these tips can help you start your business with a good foundation. However, if you would like to follow a detailed explanation you can follow any of the below courses which are relatively cheap and provide the best in value.


My personal recommendation is for the Freedom Ticket which is priced at $997 but comes as free when you purchase or upgrade to Helium 10 platinum. As you are starting out, let me help you with a discount - get 50% OFF for your first month, to ease the starting process of your business. Click here to get the discount!


Related: Are Amazon FBA Courses worth it?


Here are some of my well-researched alternates for Freedom Ticket

  1. The Last Amazon Course

  2. How to sell on Amazon (Free)

Click here for a detailed review on The Last Amazon Course


Let me know in the comments if there is anything you would like me to write about starting with Amazon FBA.


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