How to Make Money With Amazon FBA: Step by Step, 6-Figure Case Study

Saving money on make money amazon fba does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.

Key Takeaways

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• My wife and I decided to start a side hustle of selling on Amazon.

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This content is for educational purposes only and does not constitute financial advice, advisory, or brokerage services. We may earn compensation from some links on this page. Learn more.

My wife and I decided to start a side hustle of selling on Amazon. We thought it would be fun to work together on something, and our intent was to spend a few hours per week on the business and hopefully bring in between $1,000 and $2,000 per month in profit.

Little did we know that our side hustle would generate six figures of profit in our first 12 months.

There are numerous different ways to make money with Amazon, and the approach we chose was selling private label products through FBA (Fulfillment by Amazon).

In this article, we will walk through how Amazon FBA works and the steps beginners can take to start and grow a successful FBA business.

But first, I would like to share a little bit about our story, because I think it can be motivating if you are looking for a way to earn extra money.

Editor’s Note: This guide was originally written by Marc, who built and sold a six-figure Amazon FBA business between 2015 and 2017. Amazon has changed a lot since then in terms of fees, competition, and seller policies, but the core fundamentals of choosing a solid product, creating a quality listing, and managing inventory have stayed surprisingly consistent. We have gone through this entire guide and updated the details, examples, and recommendations so the information reflects the current environment, while keeping Marc’s story as a helpful case study.

Table of Contents

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• Building a Six-Figure Amazon Side Hustle
  • Our Product is Live!
  • Growing the Business
  • Selling the Business
• A Step-by-Step Guide to Amazon FBA
  • Step #1. Decide On a Product
    • The Standard Approach
    • The Opposite Approach
  • How to Spot a Good Product Opportunity
    • #1. Low Competition
    • #2. Flawed Products
    • #3. Poor Listings From Competitors
  • Step #2. Find a Manufacturer
  • Quality Is Critical
  • Step #3. Create the Product Listing
    • Listing Key #1: Use Good Photos
    • Listing Key #2: Use Keywords In the Product Title
    • Listing Key #3: Use Benefit-Driven Bullet Points
    • Listing Key #4: Fill Out as Much Info as Possible
  • Step #4. Make Sales
    • Strategy #1: Pay for Amazon Ads
    • Strategy #2: Run Ads on Other Sites
    • Strategy #3: Use Your Email List
• How to Scale Your Amazon FBA Business
• Some Words of Caution for Amazon Sellers
  • Sales Tax Laws are Changing Quickly
  • Liability Insurance
  • Don’t Rely on Amazon
• Conclusion: How to Make Money on Amazon

Building a Six-Figure Amazon Side Hustle

In the summer of 2014, I came across a few blog posts and podcast episodes focused on the topic of selling private label products through Amazon’s FBA program.

I was aware of the possibility to sell private label products, and I was aware that third-party sellers could offer their products on Amazon, but I had never thought about the power that exists when those two factors are combined.

If you’re not familiar with the term “private label,” all it means is that someone else manufactures the products and then puts your logo and branding on the product.

As for FBA, it’s a service Amazon offers that’s really a game-changer for small businesses and individual sellers. Through the FBA program, you can send your inventory in bulk to an Amazon warehouse. Then, when a customer buys your product, Amazon will pack up the item and ship it on your behalf.

When you sell products via FBA, you don’t need to fulfill individual orders, handle returns, or deal with customer service on issues related to shipping. And you can send in hundreds or thousands of items at once, instead of running to the post office every day to ship your orders.

When you sell private label products, you’re essentially outsourcing all of the manufacturing. And when you sell products via Amazon FBA, you’re essentially outsourcing all of the order fulfillment and shipping (as well as most of the customer service).

What do you get by outsourcing all of these things?

You get the possibility to build a passive income business that largely runs itself.

This is an attractive idea in principle, but it also actually works very well in practice for numerous sellers. In fact, more than 60% of sales on Amazon are made by third-party sellers (as opposed to being products sold by Amazon).

As someone who had been working online and blogging for several years, the possibility of making money passively by selling on Amazon was very enticing to me. For a long time, my wife and I had been talking about starting a business together, so I told her about it and she was in!

Over the next couple of months, we learned more about selling on Amazon and tried to come up with an idea for our first product. We had a few, but everything we considered was either too competitive or the startup costs for inventory w

Final Thoughts

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Originally published at thewaystowealth.com.