Anyone who has recognized the potential of Amazon FBA and finally wants to start has to ask themselves numerous decisions and questions. For example, which bureaucratic requirements apply to Amazon FBA. And how do sellers actually find the right products? The following Amazon FBA guide explains in 11 simple steps how to prepare your online business and how to get started successfully in the long term after registering for Amazon FBA.
The “Fulfillment by Amazon” service is becoming increasingly popular with online sellers. Because Amazon takes over all logistical steps for FBA products that are necessary to process an order. This includes, among other things, the storage of the articles, packaging, shipping and customer service as well as returns. Until you can use this service to register with Amazon FBA, however, the following 11 steps of the Amazon FBA instructions are necessary.
Step # 1 Amazon FBA Guide: Registering a Business
In order to be able to sell products via Amazon FBA at all, the first step is to register with the responsible trade office. This step of the Amazon FBA guide is also important as preparation for your Amazon seller account. However, Amazon sellers have to choose between different legal forms at this point. Basically, you should make this decision dependent on your start-up capital. With a low start-up capital, a sole proprietorship is a good way to benefit from tax advantages. While registering with the Amazon FBA, you are liable with your private assets, but this risk can in turn be reduced with public liability insurance. If you do not want to be liable under any circumstances, a business company ( UG ) is worthwhile to start with.
Step # 2 Amazon FBA Guide: Open a Business Account
If you’re starting out as a sole proprietorship, you don’t need to have a business account . But such an account is useful to differentiate between private expenses and business bookings. Otherwise it can quickly become complicated during a tax audit and many banks refuse to use the account for business purposes. There are also numerous legal forms to register with the Amazon FBA that require a business account, such as the UG and GmbH . Therefore, it makes sense within the Amazon FBA instructions to compare the conditions of the various business accounts and select the right offer.
Step # 3 Amazon FBA Guide: Apply for Tax ID
According to the Amazon FBA instructions, the tax number is also not mandatory for small businesses. But it is a good idea to apply for a VAT identification number directly in order to be prepared for all possible developments in your online business. It also simplifies the process of importing products via Amazon FBA. To apply for this tax ID for your online business, you fill out the so-called questionnaire on tax registration that the tax office issues. You can also find out online which tax office is responsible for registering with the Amazon FBA .
Step # 4 Amazon FBA Instructions: Apply for an EORI Number
The fourth step of the Amazon FBA guide only concerns the import process, but it should not be missing when starting your online business. Because you will most likely not sell your own products at the beginning, but rather purchase them from retailers, registering with the Amazon FBA. The probability is high that these are international traders from Europe or from non-EU countries. Customs use the EORI number (Economic Operators’ Registration and Identification) to request all information from a trader, which is a prerequisite for import. It is therefore important to apply for the EORI number at the responsible customs office, which is even possible via the customs office’s online portal .
Step # 5 Amazon FBA Guide: Create a Seller Account on Amazon
Now it’s getting serious, because now the last step of the first preparation within the Amazon FBA instructions begins. You create your seller account in the so-called Amazon Seller Central. All processes can then be checked and controlled there later. Overall, the creation of the seller account only takes a few minutes and the individual processes are easy to understand. The following steps are necessary:
- Open the login page of the Amazon Seller Central for Amazon FBA and click on “Sell Now”.
- Follow the instructions and enter the following data: address, account details, email address, entry in the commercial register or trade license
- Click on “Privately Held Company” under Company Form to register with Amazon FBA
- Select your online shop name, it does not have to correspond to your brand name.
- Select the sales plan of your seller account.
For the seller account, Amazon FBA offers the “Basic” and “Professional” tariffs, which differ in terms of price and product range. However, the professional version is worthwhile, as otherwise only up to 40 products can be sold per month. This professional buyer account currently costs 39 euros per month. However, if you haven’t had any products online for a month, Amazon FBA will even reimburse this fee.
Step # 6 Amazon FBA Guide: Research Products
Now you have a seller account with Amazon, but the product research for Amazon FBA follows , which will determine the success of your online shop. The best way to do this is to start with research on Google trends and social media, but also directly on Amazon. Which topics are particularly popular there? Which products are on the Amazon bestseller list? What is suggested for “Similar Products”? Overall, your selected product should always be in high demand, but at the same time it must differ from the offers of the competition. Therefore, at this step of the Amazon FBA instructions, a market analysis is also useful in order to assess the competition and to exclude identical products by registering with the Amazon FBA.
Step # 7 Amazon FBA Guide: Procure Products
Ideally, you have the opportunity to set up your own production in order to manufacture your articles yourself. But don’t panic – this step of the Amazon FBA instructions can also include retailers whose products you offer instead. The B2B trading platform Alibaba, for example, is a popular option for many Amazon FBA beginners . Manufacturers offer finished products on this platform or are open to new productions. In addition, there are many other platforms, each with different production locations and pricing models. It is therefore generally worthwhile to test products from several manufacturers and to evaluate the quality and reliability when making a selection.
Step # 8 Amazon FBA Guide: Prepare Products for Sale
In order to actually be able to offer a product via Amazon FBA, further steps are necessary so that everything is legally and organizationally secured:
DESIGN THE LOGO AND PACKAGING
Your logo and packaging should generate enthusiasm in the customer and convey the right message. So if you sell a purely natural product, for example, a logo with subtle colors and recyclable packaging without plastic would be a good idea.
Even if you are absolutely sure that your product idea is completely new and innovative, you should check your idea for possible patents and other rights. If it takes a few months to register with Amazon FBA, it turns out that your product infringes copyrights , a lawsuit can ensue.
PURCHASE AN EAN NUMBER
So that Amazon can assign and store your product at any time, it makes sense to have an EAN number, which costs around 230 euros one-time and 150 euros annually. In Germany, the GS1 Germany network takes care of the creation of the EAN number, which can also be requested online. In general, it would be wrong to state the EAN number as mandatory in these Amazon FBA instructions, but it simplifies the processes and the barcode is also readable internationally.
Step # 9 Amazon FBA Instructions: Set Up Amazon Listing
Now follows a step in the Amazon FBA guide, which is often underestimated by many Amazon sellers. Because when listing, you create the product page and fill out all the necessary information. These include the following features:
- a meaningful title with the product name
- strong bullet points with the most important product features
- register convincing texts with the Amazon FBA that highlight the advantages
- matching keywords to find your product
- impressive photos that convince customers
You can look at the product pages of the competition and orientate yourself on the bestseller pages in order to achieve the right structure for registering with the Amazon FBA.
Step # 10 Amazon FBA Instructions: Ship Products to Amazon
In general, it is possible for your selected retailers to send the items directly to Amazon after production. This saves you shipping and therefore considerable costs. But for a start you should take care of the shipping yourself in order to be able to check the quality. For this you need a shipping order, which is located in Seller Central under “Inventory” and then “Manage inventory”. After clicking on “Create a new delivery plan” and a few more steps with the details of the shipment, you can download the shipping labels. As soon as your shipment arrives at Amazon, you will be informed by email and then the sale will start.
Step # 11 Amazon FBA Guide: Optimize Sales
Almost there! Because the sale has already started, that is, according to the Amazon FBA instructions, you are now officially active as a seller via Amazon FBA. But at this point you should take a few more steps to boost your sales. For example, you can advertise your product on Amazon to increase its visibility. It also makes sense to motivate your customers to write a review. Because positive reviews increase sales via Amazon FBA significantly. Ultimately, it is worthwhile to always listen to your customers when registering with Amazon FBA, because this is the only way they will recommend your product in the long term.
Conclusion register with Amazon FBA
Building an Amazon FBA business is not difficult and thanks to the multitude of tutorials you will find a solution for every problem. Nevertheless, you should not underestimate the time it takes to register with Amazon FBA, as the many small steps can ultimately take a few days or weeks. It also makes sense to have some start-up capital to cover the total costs for required documents and Amazon FBA fees.
Frequently asked questions (FAQ) about the Amazon FBA guide
How do you become an Amazon FBA?
In order to be able to sell products via Amazon FBA at all, the first step is to register with the responsible trade office. This step of the Amazon FBA guide is also important in preparation for an Amazon seller account. This is followed by the application for the tax number.
Which business do I need for Amazon FBA?
Basically, this decision should depend on the start-up capital. With a low start-up capital, a sole proprietorship is a good way to benefit from tax advantages.
How much does Amazon FBA cost?
For the seller account, Amazon FBA offers the tariffs “Basic” and “Professional”. However, the professional version is worthwhile, as otherwise only up to 40 products can be sold per month. This professional buyer account currently costs 39 euros per month.