FBA Guide: Getting Started in Online Retail

Amazon’s Fulfillment by Amazon (FBA) service is particularly popular among e-commerce beginners. It combines maximum freedom and high success potential with a great deal of convenience. The US-based company makes trading physical products easier by taking care of storage, proper packaging, and shipping products to the end consumer.

Thanks to Amazon’s vast online marketplace reach, sellers can quickly achieve scalable success. But how exactly do you start an Amazon FBA business? What steps are involved in listing a product on the Amazon shop, and what pitfalls should beginners avoid? This FBA guide provides answers to these questions and more helpful tips.

Three Stages to a Successful Amazon FBA Business

We break down the process of starting with Amazon FBA up to the first launched product into three stages, which should be completed sequentially, but sometimes also in parallel:

1. Preparation: This includes bureaucratic tasks such as registering a business, opening a business account, and applying for an EORI number, which are prerequisites for starting an FBA business.
2. Product Development: In this stage, you choose a product category, position yourself in the market, and find a manufacturer to develop detailed solutions. This stage concludes with the import of the ordered products.
3. Marketing: To launch your products via Amazon FBA, you must register as a professional seller on Amazon. With high-quality product images, product videos, and an optimized listing, you can further enhance the potential of Amazon FBA.

What Preparation Do Sellers Need for a Successful Business Model?

First things first: for a successful Amazon FBA business, some paperwork needs to be handled initially, similar to any other entrepreneurial activity. These preparations serve the purpose of enabling you to trade products under your brand, as is the case with sellers on Amazon’s online marketplace. The following steps are particularly important:

1. Registering a Business: As a sole proprietor or, for a large FBA business with a starting capital of €25,000, possibly directly as a UG (limited liability company) or GmbH (limited liability company).
2. Opening a Separate Business Account: To best separate private and business finances.
3. Filling Out the Tax Registration Questionnaire: With professional help from the relevant tax office if needed.
4. Applying for a VAT Identification Number: Even for small business status.
5. Applying for an EORI Number: Which allows the import of samples and products into the EU.

The FBA Guide for Product Development and Import

Once all the preliminary conditions are clarified, it’s time to decide what type of products you want to sell via Amazon FBA. Extensive product research is worthwhile to find market niches with high demand and insufficient supply. After positioning yourself in the market, you contact potential manufacturers to develop a product, including its packaging. After a comprehensive product calculation and applying for all necessary certifications, the finished products can finally be imported and stored in the Amazon warehouse.

FBA Guide - Final Steps on Amazon

Our FBA guide is completed by the final steps you need to take on the Amazon platform. To become active as a seller on Amazon, you need to register with Amazon Seller Central. It is advisable to choose the professional plan directly for €39 per month so that your Amazon FBA business is not subject to limitations. Here you can learn more about Amazon FBA costs. To increase reach and conversion rate, professional product images and an optimized listing on Amazon are also recommended. With these preparations, nothing stands in the way of the successful launch of your first product.