Amazon FBA Guides & Tutorials - Brand Builder University

Amazon FBA FAQs

Amazon FBA stands for Fulfillment By Amazon.

As an Amazon seller, you can join the FBA program and send your products to an Amazon Fulfillment Centre. Then, each time you make a sale Amazon will pick, pack, and ship the order on your behalf.

This makes it a great opportunity for anyone looking to launch a business without having to invest in overheads like offices, warehousing, or staff.

Amazon will also handle customer service, payment processing, returns, website hosting, and a lot of other time-hungry tasks, allowing you to work wherever you want and at times that are convenient to you.

In order to sell on Amazon with the FBA program, you first need to have a business set up and inventory to sell. The startup costs will vary greatly depending on the products you are looking at selling on Amazon, but you can get a detailed guide to an Amazon FBA startup budget here.

Secondly, there are a number of Amazon FBA fees you will need to pay:

Referral fees: Each time you make a sale from your Amazon store you will be charged a percentage of the final selling price. For most categories, this is 15%.
Fulfillment fees: You’ll be charged FBA fulfillment fees each time Amazon sends one of your products from their fulfillment centers to a customer. Fulfillment fees are determined by the size and weight of your product.
Inventory storage fees: When you store inventory at Amazon fulfillment centers you will be charged inventory storage fees calculated by cubic feet. As long as you are selling through products relatively quickly this isn’t too much of a problem, but is definitely something to

For more information about Amazon FBA fees, check out Amazon’s pricing page here.

It certainly can be! But like in any business model, there are no guarantees for Amazon sellers. You must work hard to develop a good product that solves real-world problems for a clearly defined group of people (or target audience). If you can do this, you’ll be well on your way to building an Amazon business that always has customers willing to pay a fair, profitable price for the products you sell.

Being an Amazon FBA seller is a great ‘gateway’ platform for beginners to get into eCommerce. The reason for this is it eliminates a lot of the most challenging aspects beginners often struggle with, but teaches some of the most important business skills. Things like web design and hosting, shipping products, processing payments, and driving traffic are made much easier by the Amazon FBA platform, its fulfillment centers, and its team of staff. This gives you the ability to focus on learning marketing, copywriting, product research and development, and a ton of other key business-building skills.

Amazon FBA is one of the best side hustles, for a number of reasons:

Location independence: Thanks to Amazon’s fulfillment network you can store your inventory at fulfillment centers around the world and have your products shipped to customers without you ever having to handle a unit of inventory. This allows you to operate an Amazon FBA business from wherever in the world you choose.
Time flexibility: Unlike a traditional brick-and-mortar store, you don’t have to turn up at a certain time every day. Instead, you can run your Amazon business on a schedule that suits you and works around existing employment, family responsibilities, and hobbies.
Asset potential: When you build a private label brand on Amazon, you’re not just an ‘Amazon FBA seller’, you’re building a real, sellable asset. In a few short years, you can build an FBA business that can be sold for a multiple of its profit. We teach you exactly how inside our Exit Engine course.
Personal development: Building an Amazon FBA business teaches you vital skills like marketing, copywriting, product development, negotiation, and more. These skills not only help you build your FBA business but also help you grow as an entrepreneur helping create further opportunities for more income streams in the future.

Running an Amazon FBA business is relatively flexible which gives you the ability to decide how much time you put into it and when. It’s not “passive income” by any means as it takes a fair amount of work to get set up. But, the nature of the FBA program and having your inventory stored at an Amazon fulfillment center and dispatched on your behalf means Amazon sellers can choose the hours they work—and where they work from.

Like anything, an Amazon business has more opportunities for success with more hours invested into it. So our advice is not to approach this looking to put the least possible time in, and instead create as much time as possible to invest in your Amazon FBA business and grow it as quickly as possible.

Most new Amazon sellers find that 5-10 hours per week is enough to get things established, but ideally, you’d have 10-20 hours per week to drive momentum early on. Then, once your business is established you can always look to hire help to manage your Amazon seller account or improve processes in order to trim back the hours you’re spending running the business.

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