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Beginner’s Guide to Starting on Amazon FBA

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Money You Need to Start Selling on Amazon?


This question comes up so often; I had to write an article about it.  The reason answers vary on this issue is due to many factors.  You have people who are trying to sell expensive courses and want to ease you in with lower start-up costs, and you have individuals who have invested different amounts into the Amazon FBA business and gotten different results.

I will tell you my general recommendation at the end of this article, but I also want to give you some insight.

The amount of money largely depends on the product and what level of competition you feel you can handle.  It comes down to wanting to go up against other small businesses, think iPhone repair shops versus going against the big guys like Microsoft or Coke.  Do you have the resources to battle giants (the Giants on Amazon aren’t that big) or do you want to go against other small businesses?

You also need to keep in mind the rewards that come with each type of competition come at different levels as well.

Let’s Look at Some Real Examples

Let’s looks at one of the popular products on “argan oil.”

Junglescout results

If you have no idea how sales work on Amazon when it comes to what products people generally choose, look at this article: Secret to Success on Amazon

Now if you take a quick look at the search result page, you will see your competition is quite stiff.  I count 16 products with over 1,000 reviews.   The winner when it comes to reviews has over 5,000.  Now the one’s with lower review counts are doing well, but we have to keep in mind they may be part of fledgling brand lines and are pickups by those familiar with the brand on other platforms or past purchases.

The fact here is to see your investment pay off you are going to have to unload a lot of product just to rank on the page, never mind the reviews, which will have to be the result of any more product sold.

Argan oil at 2 oz. can cost up as much as $4.00 a bottle to source, purchasing 500 units would cost upwards of 2,000 plus shipping, and that’s before adding packaging or launching.

Let’s look at something a lot less popular…a titanium whistle.

titanium junglescout

The average review count on the page is already a big difference.    The average review count on this page is just 59.   But you can already see the cost of picking such an unpopular product.  The top selling product sits at half the review count, but due to product design or brand name at just 63 reviews it sells about 4,000 a month.  A drop in the bucket compared to the $100,000 a month product in the argan oil SERP page.

Strangely, the cost of titanium whistle from a manufacturer can be at 4 or more.  But I have seen some that cost 0.99 with the right manufacturer.  So your cost for an order of 500 (I would not order that many on the first go around, as that could be a four month supply depending on fast you could get your reviews up) could range between $500 and $2,000.

Do you see why the money you need to start on Amazon fluctuates so much from person to person?

The factors that come into play vary.

  1. Product Competition
  2. Product Price
  3. Ease of access to product

These are just three factors that play a part in how much you need to invest.

My Recommendation

The bare minimum I suggest is $1500 but the more money on hand the easier it is to be successful.  If you wanted to be extra careful, you could put my recommendation up to $3,000.  The thing about an Amazon FBA business is the higher amount of resources you have to spend the easier your climb to the top will be.

A note from Crushing Azon:  We believe no one should have to pay over $2000 for access to information that could change his or her life.

Everyone should have access to explore a business model that works.  For this reason, we put our entire flagship course on Skillshare where you can access it free for 30 Days:

Sign up and take a look and if you don’t like what you see, cancel it’s as simple as that (but we know you won’t).  🙂

Or get our flagship guide free with Kindle Unlimited: How to Crush it on Amazon: Create a Brand and Build a Million Dollar Business in a Year

*To own the course and get lifetime updates see our “Courses/Trainings” Page.

Amazon Product Launch Amazon SEO How to Make Money on Amazon

Don’t Spend $5000 on an Amazon Course…(Amazon FBA for Beginners)

Today, I’m going to save you $5000 (keep in mind there are many complexities to Amazon you will not run into 99.9% of them). If any of you have Facebook and have any entrepreneurial aspirations, you have seen it. Amazon courses and the prices are starting to become more and more ridiculous. So I’m a going to tell you to push the pause button on buying. These courses promise you the world. They offer “masterminds” cool software, and fancy getaways to Vegas, maybe even Miami. Well, I have made this post to steer you in the right direction and tell you everything you need to succeed in the physical products business.

Upfront Costs

Starting small with $1500 is ideal because you want to test your product before diving head first. Of course, shipping and other fees can put a hankering on this budget it may not be realistic at this point in the game. It is important you start with the least amount of money/inventory possible. Do not be a miser, but do not go overboard when it comes to how much inventory you purchase. Even if you think you have found a great product, anything could happen. Hollywood’s fascinating tales of entrepreneurship simply choose to skip over testing as a part of good business. If something goes wrong, you will need the resources to rebound. So be smart and have intentions of starting small.


To profit massively and have free time on your hands, use FBA, Fulfillment by Amazon. Fulfillment by Amazon is a service by which Amazon houses your product and when an order is placed packs and ships it themselves. You will need a Professional Seller account. It is $40.00 bucks a month. Don’t cry; this cost is necessary as there are many benefits to this service.

1. No having to hold product in your house

2. Never having to buy your shipping supplies

3. No daily trips to the post office

4. No matter how many units you sell the cost is always $40 (plus fees from each sale)

5. If your product breaks in transit to the customer Amazon will pay for it

6. If you get a bad review because of poor shipping time or handling of the package Amazon will remove it from your listing.

7. If your product goes missing or breaks at the warehouse Amazon will reimburse

8. Every person that buys your product has the option for Prime shipping (free two-day shipping)

Create a Brand

Deciding on your niche is the first step of any Internet business. Pick a product category you are interested in, or one that you find makes enough money for you to sustain your lifestyle. The top categories on Amazon are Supplements, Health and Beauty, Kitchen and Dining, and Mobile Accessories. There are other categories, but these are the major players. Choose a category with low competition your rise to the top will be quick. Choose a high competition category, and moderate success can still be very profitable. It is best to aim for a mix of both, although it comes down to preference. A creation of multiple brands might become a must for the more lucrative entrepreneur. Two lower competition categories are “Sports and Outdoors” and “Travel”…you are very welcome.

Picking Products

You will find different people have different rules for products. As a person, starting a private label company, there are certain rules you have to abide by. The first goal of product sourcing is to pick product(s) that will save your money and reduce risk.

In order to reduce risk, you want products that are small. Products that are lightweight will reduce shipping costs, saying that, avoid heavier items like Kettle bells (and while we are at a furniture too). You want to avoid products that are too complex, with a lot of moving parts, this rules out electronics like Bluetooth speakers, only do these if you have capital to replace defective units). You want to avoid products that already have popular brand names behind them, or top-of-mind recognition. For instance, when you think batteries you think Duracell, when you think diapers you think Huggies,etc. You want to avoid seasonal items because you want profits coming in all-year round.

It is amazing how many seller stop at the “Pick Your Product” Stage, because they get overwhelmed. The truth is as long as you follow the guidelines above you’re fine. You can be successful with any product as long as you know what elements of your product listing will bring you sales (more on that later in the course)

There are tools that can assist you finding products, but many are overpriced. One, I will suggest is Junglescout. It’s a Google Chrome extension that gives you sales estimates on products, both number of units sold and revenue. So you can make an educated guess how much money a product will give you and make decisions based on any financial goals you have set for yourself.

Note: The first iteration of this article was originally written before tools like Junglescout were created.  Now, it doesn’t really matter what BSR the product is, with an estimate on how much the product actually makes you can makes your sourcing decisions based on this revenue estimate.  This should lead you to a more educated decision to reach your desired financial goals.


Another level of difficulty, but you can make it easier if you know what you’re doing. Two ways to source: You can Google [private label/wholesale/OEM (insert product name here)] -– or — you go to these sites (a couple of tips next to each): When looking at manufacturers use Gold Suppliers with one million in sales. A tip to avoid getting scammed is using Paypal instead of a bank transfer. An extra step toward protection on this site is the trade assurance program. wholesale marketplace, smaller order quantities, not for long-term purchases. Wholesale marketplace, full OEM services sometimes, free shipping sometimes (free shipping is a huge plus)


Trust me, save yourself a headache.


If you can get free shipping, go for it. Shipping is a lot to fit in here. But it is not complicated at all. Courses try to confuse you, to make you think it ‘s hard, but it is not. The manufacturers you contact will have a lot of experience and can guide you through the process you follow. Want more details you go to: Customs fees come when shipping products that have a combined value of $2500. If you are shipping by sea, you will need the help of freight forwarder. Google can assist you in finding a good freight forwarding company. Calculate custom charges and shipping cost before it arrives, you do not want any surprises. If you need assistance, talk to a freight forwarder.

FBA Requirements

Make sure you are not shipping more products than you are allowed to have. You will begin with 5000 unit limit unless your product is oversized like a yoga mat (then you are limited to 500). Have your supplier limit any additional instructions or papers on the outside of the boxes your product is shipped in. Amazon provides a shipping label; tell your supplier it should be the largest thing outside the box. Your product should have what is called a UPC; you buy one here:

If this is not present in barcode form on your packaging, you will need stickers applied to the packaging of each item you ship. These are called FNSKU stickers. When creating your shipment within Amazon, they will provide these stickers for you. Sometimes your manufacturer will apply these stickers to each of your products for free, or Amazon can apply them for you for a fee. I usually have my first package from a new supplier shipped to my house first to see if they followed my instructions. After the initial shipment, which should be small, I then ship them off to the assigned FBA warehouse. After correcting the factory, you should be able to have them send your products directly into the FBA warehouses.

Now your Products on Amazon

Three things matter on Amazon, NOTHING ELSE.

PICTURES: Picture quality correlates with sales, this is not a theory this is a fact. Stock photos from your manufacturer are not going to cut it. You need pictures that feature your packaging and cast your product in a professional light. Follow Amazon’s rules regarding pictures like representing the actual quantity you are selling in your main photo. For example, if you are selling your product in packs of two your main photo should have two products.

REVIEWS (RATING): You will need them to get sales. Start with friends and family, if they are not supportive do a giveaway on niche forums and Reddit, get their email address, bug them respectfully until they leave a review.

SALES: You will need them to bump your BSR. This raises you for keywords your product should appear for in Amazon’s search result pages. After about 20 or so reviews from Redditors, friends, and family then go to a…

Launch Service

The “big” secret courses are pushing. You probably heard of Zonblast, great, but extremely overpriced. A cheaper service to get the same exact results: Follow up with customers who take part in your launch for reviews. You are “buying” reviews and a bump in keyword ranking.

Repeat/Diversify your Bonds

Oh, you’ve gotten some success…selling about 20–30 a day now with no ad dollars spent on your part. Good, pick another product and start again within your brand. Then create a new brand and begin again. Repeat, repeat…diversify your bonds (brands). Anyone can do this… it is easy. I even revealed the “secret”… the launch service.


A note from Crushing Azon:  We believe no one should have to pay over $2000 for access to information that could change his or her life.

Everyone should have access to explore a business model that works.  For this reason, we put our entire flagship course on Skillshare where you can access it free for 30 Days:

Sign up and take a look and if you don’t like what you see, cancel it’s as simple as that (but we know you won’t).  🙂

Or get our flagship guide free with Kindle Unlimited: How to Crush it on Amazon: Create a Brand and Build a Million Dollar Business in a Year

*To own the course and get lifetime updates see our “Courses/Trainings” Page.

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