Is anyone in your circle operating FBA business? Do you want to start your own Amazon Fulfilled business? But, are you tight on budget?
Hey mate, do not worry. Amazon FBA business does not totally depend on $$$$$ figure investment. You can start the Amazon store with a tight budget (little money) as well.
One can start an Amazon business with no money, and you have at least little money. You are one step ahead of them. Check out the article below and learn to build Amazon FBA business with little investment.
Best ways to start Amazon FBA with little money
Sell products already listed on Amazon
The best way to start FBA business with little money or a tight budget is to sell products already listed on Amazon. Sites like Koehler Home Decor, runs FBA program for new sellers with limited budget. You can start as low as $100 investment.
The site deals in numerous categories and subcategories such as home decor, garden decor, lanterns, seasonal and gifts. Check Koehler’s product prices on Amazon, compare profit, decide with what product to start selling with. Once you finalise your product, make an FBA order at Koehler and they will process your inventory to Amazon. Congratulations, start selling on Amazon.
Private Label business
One can start selling private label products on Amazon with tight budget. Yes, it is possible. You can find a decent price product on Amazon selling between 20-30 USD. Check for China sourcing sites (Alibaba) and find a supplier for that product. Negotiate with them and order a limited quantity of products.
Check how to find a product for private label FBA under budget:
- Do micro-product research
Amazon is a home place of millions of products. All products are classified based on categories and price ranges. So, doing a core Amazon product research, you can find a good product priced between $18-$30 on Amazon having good sales, moderate or ok competition.
As the seller already listed the product on Amazon, the seller is making a profit on this price range. So, you can too. Just you need to find a good supplier and negotiate with them.
- Prepare an excel sheet
Check statistics of selected products and note them down in an excel sheet. Use Amazon FBA calculator chrome extensions to calculate the FBA fee. Also, make columns for adding supplier price, MOQ, and other details. Download our Product research excel template for ease.
- Find a supplier
As the budget is limited, I will suggest you get suppliers from China. Only this way you can cut down the product price. Do search Alibaba with the product name or Google reverse search image features.
Check listings of different suppliers and manufacturers, their MOQ, and pricing. It will help you find the best supplier under your budget. Do message the vendor/manufacturer on and negotiate with them.
Also, it is advisable to call your shipment via Sea through DDP. As Air cargos are 2-3 times more expensive than Sea shipment. So, it would help you save good money. Though the shipment will take initially 15-35 days to reach the Amazon warehouse from China via Sea route.
Online Arbitrage
Private label model needs at least $1500-2000 investment. If you have a low budget cap for FBA then Arbitrage is the best choice for you.
Find best selling products on Amazon and look for best deals in shopping stores & malls, and online sites.Grab the products at high discounted price. Pack your inventory, stock it to the Amazon warehouse, and start selling it. Make sure you double check profit margin before purchasing the product. Go for a product giving you at least $5 profit on every sale.
You can get reach to best deals with online arbitrage tools. Tactical arbitrage, Source Mogul etc are best on the list.
Stock wholesale from Liquidation and clearance sites
Another best way to start an amazon FBA business with little money is stock liquidate products. Many private label sellers and online eCommerce companies list non-selling inventory to clearance sites and liquidation sites. You can find such inventory at liquidation.com, bulq.com etc and get stock at best possible discounted price. One can get a best discounts(70-85%) and deals. List the inventory at Amazon under FBA and forward it to Amazon warehouse.
How I helped a client start Amazon fulfilled business under $2000
Once a client approached me for FBA services. He was very interested in doing business with Amazon supply but limited to a $3000 budget at the start. As we all know, Amazon FBA is not just getting products stocked at Amazon Warehouse. We need to spend money on marketing, tools, monthly professional seller fees, etc.
Keeping his budget into consideration, our team prepared tight budget Amazon FBA business plan for him. We started product research and came up with a good product in a deep micro-niche. It was priced at $29.99.The product competition was low and Amazon was charging $8.50 FBA fee including referral fee. (Product package weight: 2.12 pounds).
Then, we started supplier research and found 12 suppliers on Alibaba. With discussion and negotiation, we closed the deal at $4.76/set and convinced him to get MOQ 300.
The shipping via sea was charged $300/300 units. So, the total price charged was $5.76/unit. The investment was 1728$.
So, the Amazon price of product=$29.86/unit
FBA fee=$8.50/unit
Supplier Fee+ Shipping=$4.76+$1=$5.76
Profit=$29.86-$8.50-$5.76=$15.60/unit
So, the bottom line is you can start your Amazon FBA business with little money. The only thing that matters is the best and profitable product research.