How Amazon FBA Works & How To Make Money From It In 2022

Have you been racking your brain as to how Amazon FBA works?

If you've always wanted to build your own online business but you're not sure how to start, I'm here to help you.

Over the last decade, Amazon.com has become one of the most powerful companies in the world. It has reached over $1 trillion in market value.

There has never been a better time to sell on Amazon. Are you ready to discover how you can make money from it in 2022?

Watch the video below:

(Click here to watch on YouTube)

Are you ready to leverage the power of Amazon to generate financial wealth and freedom? CLICK HERE to get instant access to my FREE Amazon FBA training!

This page contains affiliate links. If you purchase a product through one of them, I will receive a commission (at no additional cost to you). I only ever endorse products that I have personally used and benefitted from personally. Thank you for your support!

It's not too late to make money with Amazon FBA.

Despite popular opinion, Amazon is not saturated. In 2020, Amazon had 1,029,528 third-party sellers. During the Holiday Season alone, customers ordered more than 1 billion items from third-party sellers on Amazon, with more than 140 million items ordered between Thanksgiving and Cyber Monday.

These statistics prove that there is no shortage of Amazon sellers. For those of you who don't know, Amazon FBA stands for Fulfillment by Amazon. This means that Amazon stores your products in one of their fulfillment warehouses.

When someone purchases your product from your Amazon listing, Amazon charges you a small fee to ship your product to customers automatically. It's your job to market your product. That is the primary skill set of an Amazon seller. The more traffic you drive to your Amazon page, the more that Amazon will reward you and feature your product on their website.

This is one of the reasons why so many people are attracted to selling on Amazon. However, keep in mind that this is not a get-rich-quick business opportunity. Don't expect that you can just put up a product on Amazon and all of a sudden you will make a ton of money.

You have to do your part. This is why I want to share with you the hardest aspects of the Amazon FBA process that you need to master if you want to build a successful Amazon business.

Growth of Amazon FBA

If you decide to take on Amazon as an opportunity you want to understand the growth that exists. Nobody wants to get into a dying business opportunity. The more that Amazon grows, the more that you benefit, long-term. In 2006 Amazon’s net sales were $10.7 billion, compared to $177.8 billion in 2017.

This figure does not include the impact of the marketplace, so the growth of Amazon’s impact on retail is closer to 30x. Since 2017, Amazon has continued to grow and it isn't expected to stop in 2021. More and more people are buying on Amazon and traditional retail stores are closing down.

Amazon Marketplaces

It's important to understand that Amazon has different websites based in different countries. If you want to sell in the U.S., that means that you have to have your inventory in Amazon's fulfillment centers in the U.S. This makes it convenient for Amazon to ship those products to customers that buy on Amazon.com.

On the other hand, if you want to sell on Amazon.ca or Amazon.co.uk, that means that you have to set up a new Amazon listing on each of those websites.

Also, you would need to have inventory in the fulfillment centers in each of those countries. This is why most people choose to sell on one Amazon platform. Amazon.com is the best and biggest opportunity, followed by Amazon.co.uk, Germany, other parts of Europe, and Canada.

Step-by-Step Process For Selling on Amazon

The first step for selling on Amazon is to find a potential product that you can sell. I suggest coming up with as many ideas as possible by browsing the Amazon website. See what other people are selling. You don't want to invent anything. This is a big mistake that I see a lot of people make.

The fastest path to success is to find products that are already selling well and then to do research on those products to see how much money they are making. The trick is figuring out how you can differentiate yourself and make your product stand out from the competition.

How To Find Products on Amazon

Check out the different categories and niches on Amazon's website. At first, you just want to browse categories that may be attractive to you. Ultimately, you want to sell a quality product that you believe in. Ideally, you want to choose a product that can solve a problem.

When you're looking for products, find ones that you can sell for over $10. In my experience, $15 is a sweet spot. If it's less than that, you won't make much profit from it. Keep in mind that more expensive products will cost you more to manufacture.

Once you've found a list of products that meet the $10-15 criteria, I would suggest going to Alibaba.com and finding manufacturers that can manufacture a product for you.

Once you've decided on a product, the next step is to set up your Amazon Seller Central account. From there, you would set up your Amazon listing and get your product packaging done. Once your Amazon listing is ready, you ship your inventory to Amazon's fulfillment center and link that with your listing.

How To Create A Winning Product Listing

You want to have a product that is different from the competition. This could mean a higher quality product, a different design, cool packaging, or unique product images. Similarly, you could lower the price point of your product or bundle your products together. A greater number of reviews is a great way to differentiate yourself from other products. Lastly, offering a bonus is also a great way to stand out.

Amazon Product Research Tool

Before you decide on a product to sell on Amazon you want to determine if there is a high enough demand for it. My favorite tool to determine this is called Jungle Scout. This is a Google Chrome extension that analyzes the results on an Amazon listing page and tells you how much money products are making.

It's really hard to find products and analyze them manually without a tool like Jungle Scout. Yes, it costs some money but it will make your life so much easier.

How To Get Your Logo Designed

As an Amazon seller, your product listing is everything. It is what will determine whether or not a potential buyer will click on your listing. This is why you must have a great Amazon listing page.

Once you find your supplier and agree upon a price with them, you need to create your brand logo and packaging. Fiverr.com is a great platform to find freelancers who can design your logo, product images, and/or product listing description at a relatively fair price.

How To Market Your Amazon Product in 2020

If you want to be successful on Amazon this year and beyond, you have to be willing to market outside of Amazon. The way that you overcome saturation is by creating a unique product that stands out or you get traffic from somewhere else. For example, you could run Facebook ads to your Amazon listing.

Doing so will allow you to get more sales than your competitors won't be getting on Amazon. In turn, your product will rank better and you will get more reviews. Similarly, you could find influencers on Instagram or YouTube that can promote your product.

This is how you build a legitimate business, one that isn't only dependent on Amazon. Eventually, if you desire to, you can build a brand on Shopify or create your own eCommerce site. My fiancée Tatiana is a perfect example of someone who has done this successfully. She now makes $115,000 per month on Amazon and Shopify.

This is how Amazon FBA works and how to make money from it in 2022.

I believe that Amazon FBA is one of the greatest opportunities of our time to build a sustainable online business. Whether you want to make some extra money on the side or build a 7-figure brand, Amazon affords you the ability to create financial freedom. Are you ready to make money from Amazon this year? There is no better time than now to start.