How To Guide: Starting Your Amazon FBA Business

Mar 24, 2022

How To Guide: Starting Your Amazon FBA Business

Time to Read: 3-5 minutes

What is an Amazon FBA Business?

We have seen extreme growth in the digital landscape from the changes in consumer browsing and purchasing behavior to the rise in e-commerce entrepreneurs. Since the start of the pandemic, the e-commerce industry has seen a spike in finding ways to grow with consumer shopping trends and build businesses from the comfort of their own home.

Amazon has become an essential online marketplace selling over 1.6 million items online every day.

Fulfillment by Amazon (FBA) is a service provided by Amazon to give third party sellers the ability to store, sell and ship their product through Amazon’s logistical network providing sellers more flexibility with the day-to-day functions of their online store. When a budding Amazon seller decides to open their FBA storefront, they must follow a strict set of rules and guidelines to adhere to a history of reliable e-commerce fulfillment and product selling, and live up to Amazon’s reputation.

FBA businesses’ efficiency offers sellers more time to focus on the branding, marketing and running of their store and other value generating activities. More than 2 million people around the world are selling on FBA platforms- knowing the pros and cons ahead of time can make the landscape a bit easier to navigate. As a strategic buyer of these businesses, we are experts on the ins and outs of what starting your Amazon FBA business entails. Dive in for the go-to guide on how to start your Amazon FBA Business from your own home.

How to Find Your Niche Product to Start an Amazon Business

Amazon houses a sea of products and interesting things to buy. When choosing a product to sell it is imperative that you do your research. Picking a product that holds value to your target customers will make all the difference in profitability when you start your Amazon business. Be sure to choose something that you like and are interested in. Being in an industry you love will make a huge difference to your ability to stay focused and involved.

1. Private Label

Private label products give sellers the ability to tailor your product to reflect your own branding. Many are finding these products to be the most successful. Private label products are products that are manufactured by a third party and sold under the retailer’s name. For example, you can purchase candles with your brand name on the label.

2. Utilizing Software

To help find the best product for you to sell, utilizing product research software can be a useful tool. Once you have found your niche, using software can validate your decision by exploring its potential success rate.

3. Performing Keyword Searches

Performing keyword searches on your web browser to find out what’s hot in the market. Looking into what people want now and predicting what they will want down the line by looking at market trends will be extremely helpful.

Choosing to sell products in the $20-$50 range will attract more customers than selling at too high a price point. Sourcing a product and selling it at roughly four times the cost is an ideal profit margin for high profitability.

When thinking about keeping costs down to maximize profit, shipping is definitely something you want to think about. Investigating lighter weight products in smaller packaging, and flat rate shipping can help keep costs down when you newly start your Amazon FBA business. Also, never be afraid to negotiate with different shipping companies for the best price. It pays to shop around!

Choosing the Right Source/Supplier is Key

Suppliers are the third-party organization that will supply you with the product that you will sell. Your supplier will be crucial to your success as an FBA seller. They need to be reliable, reputable and make quality products. When deciding on a supplier there are two primary options: manufacturers or wholesalers.


Manufacturers are a great choice if you would like to sell private label products or customizations to standard stock. Manufacturers have a longer lead time to receiving your products and you will always want to have a sample made first. Usually, you will have to buy higher quantities of the product and there is a higher risk when getting involved with a manufacturer. This is due to quality control and pricing and quantities being controlled by them. Do your due diligence when dealing with manufacturers in order to find the best one for you.


Wholesalers source items to sell to others as their inventory, they are a middleman between the manufacturer and the seller. Wholesalers can be useful when looking to take on smaller quantities of inventory or are starting out with lower budgets. Wholesalers can quickly ship the inventory to you, and they are easily shopped online. Keep in mind that you cannot customize the product when using a wholesaler.

When you employ a manufacturer or wholesaler it is imperative to do your homework on them. Be sure to be clear on payment terms and conditions of your agreement, the return policy, if they have insurance for damaged goods, their track record as a supplier, what their production capabilities are, consistency and their compliance/ regulations. Checking the status of their business license is also a good idea to fortify trust in the working relationship.

Getting Your Brand In Front of The Right People

In the digital age there are many channels to get in front of your target customers.

Search Engine Optimization (SEO)

Search Engine Optimization is a great way to be seen online. Benefits of SEO include, an increase in organic discovery and quality website traffic which leads into great return on investment and more clicks. It also helps consumers trust your brand by giving it more credibility. When a customer sees your brand often in search results and higher up than others it gives them the feeling that the brand fits what they are looking for more than others listed. This also leads to your brand becoming top of mind, leading to possible sales in the future if your consumer isn’t ready to buy at the moment of discovering your brand. SEO also helps to enhance your PPC success.

Paid Per Click

Paid Per Click ads are another helpful tool for your FBA business. PPC is very valuable for your search engine strategy. These ads bring your brand’s website to the top of a search engine results page, giving you immediate visibility to potential customers. By listing your website traffic will increase leading to an increase of ROI. Just like SEO this will also increase your brand recognition and giving you the option to retarget your ads as you see fit, keeping what works and pivoting when you need to.

Social Media

Social media is a great way for customers to get to know your brand and build a relationship with your customers. It gives your customers a way to connect and socialize about and with the brand, building retention and loyalty. Social media is also a great place to host giveaways, contests or give out promotional codes. Partnering with influencers whose social media accounts hold similar values and interest that your brand has is a good way to get others to promote your brand to their followers as well, reaching more potential customers.

Sponsored Ads

Buying sponsored ads will place you at the top of the list, showing your brand above the competitors. This will help with customer acquisition and keeping your brand top of mind for consumers.


Amazon FBA businesses are a great option for those who want to start an Amazon business from their own home or who want some extra income on the side. By taking out the logistical headache that can come with owning a business, FBAs give the seller more time to focus their efforts on running the business and opening the door to success. If you already have an FBA business and want to know your exiting options, unybrands is here to answer any questions you may have. Contact our team to start the discussion!

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