Beginners Guide: Answering All Your Questions About Amazon FBA

Starting your entrepreneur journey with Amazon FBA can be intimidating when you lack experience in the eCommerce industry.
Even Project Nine University founders had a rough time when losing $50,000 in their Amazon FBA business. However, this doesn’t have to be the case for you.
Nine University has gathered years of experience. Has learned from devastating mistakes . All to build a community and help other Amazon FBA sellers. 
Keep on reading to know more about the most FAQ regarding how to sell on Amazon for beginners.

How much money do I need to start a business with Amazon FBA?

To start selling on Amazon, we recommend focusing on two main issues. How does FBA work and product research.

How does FBA work

Sellers send the products to Amazon’s fulfillment centers. And Amazon takes care of storing, packaging, and shipping the products. You can sell on Amazon or through your website.
All of these perks require logistics and workforce, which Amazon charges fees to sellers.

Product research

Once you have defined your business goals, you can start choosing the products you want to sell.
The product research will provide valuable insight into a product’s demand, seasonality, competition, and potential profit margin.
You can research on your own. But we recommend using online tools that will take care of the whole research. Such as Helium 10 and Boost Nine.

What are Amazon FBA fees?

Amazon charges fees for handling the process of packaging and shipping.  
The main fees you need to consider are below.

Fulfillment Fees
Whether you sell on Amazon or your website, you need to cover a fee. This regards the shipping weight of your product. The fee is charged per unit.

Storage fees
There are three types of storage fees. 

Monthly inventory storage fees. Billed monthly for how much space your inventory occupies.
FBA inventory storage overage fee. Charged if your inventory is over the limit storage space on a given month.
FBA long-term storage fees. Invoiced if your inventory has been at the fulfillment centers for more than 365 days.

Return processing fees
The seller must pay a returning fee when a customer returns a product that was sold through Amazon. And offered free shipping.

What is Bundling? Why do I need to do it?

In Amazon, bundling is a method that enables vendors to sell multiple single items as one unit. Bundling is attractive to clients becuase, they don’t have to place and track different shipping orders.

Also, sellers can use bundling as an advantage to offer discounts and achieve more sales.

If you have any further doubts regarding how to set a successful business on Amazon FBA, please contact Project Nine University. You can also find more free resources like this at our YouTube Channel. We are here to help!

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Disclaimer: We do not guarantee that you will achieve results or earn any money using the information we provide. Like any business venture, hard work and effort are required. The successes shown are not typical, and are self reported. You should not expect to achieve similar results. In fact, most clients make little to no money. Use caution and always consult your accountant, lawyer or professional advisor before making any decision concerning your business, investment or finances.