Wherever you’re at in your Amazon FBA journey, we want you to know that you’re not alone. We’ve been there. We know what it’s like to take that first step into the unknown and feel the fear of failure. If there’s anything we learned on our way to a successful business, it’s that uncertainty is inevitable—especially when we started out with no outside funding. But while bootstrapping can be scary, it doesn’t have to be impossible. It can even be fun if you do it right!
Starting an Amazon business without much money means doing things a little differently than most entrepreneurs; it means taking advantage of every opportunity to save time, energy, and money. It means thinking creatively about how you approach the buying process, sourcing products, and shipping them off to Amazon FBA warehouses.
Today, we want to share some of our favorite tips for selling on Amazon FBA on a budget—all of which will help you maximize your profits by minimizing your upfront costs.
Selling on Amazon FBA can be very lucrative, but there’s a lot that goes into it. From locating your products to shipping them to the warehouse and customer service, you need to keep an eye on your spending and make sure you’re not overspending in any area. But at the same time, you don’t want to skimp where it matters most, especially when it comes to making sure your customers have a good experience with your brand. So how do you ensure that you’re keeping costs down without cutting corners? Here are some of our best tips for saving money as an Amazon FBA seller:
Use Amazon’s tools to help save money
Amazon wants your products to sell well, so they’ve created lots of tools that can help you with things like amazon keyword research find your first winning product from more than 20 million products on Amazon, product optimization optimizing your listing with products description, images, titles etc. Find top selling products, there are various chrome extension available for product research from zonbase, Helium10 & Jungle Scout, sales estimators to estimated the ROI for certain products, PPC automation once you have your products listed on amazon you can leverage amazon PPC to increase your sales & many more tasks can be achieved through various tools out there.
Instead of buying separate tools or software, use all the free tools available on Seller Central, including the Inventory Performance Index tool, which can help you decide whether or not it makes sense for you to send in more products from a particular vendor.
Buy in bulk
One of the best ways to save money is by purchasing your products in bulk from vendors who offer discounts for larger orders.
Buying in bulk is easy with the tools Amazon Business customers have access to and the thousands of supplies available for purchase in bulk quantities. Whether it’s office supplies, or janitorial or foodservice supplies, there are many benefits to purchasing larger quantities.
(1) Buying Efficiencies: When businesses find wholesaler(s) that provide reliable inventory and sharp pricing, they cuts out the need to interact with manufacturers who typically have no available inventory on hand and often have long lead times for production. Wholesalers also usually can offer a very broad range of products at competitive prices.
(2) Cheaper Pricing: Because wholesalers are buying large quantities at discounted rates, they are able to pass savings to retailers.
(3) Smaller Orders: Retailers are able to purchase smaller quantities from wholesalers allowing them to effectively meet demand, manage inventory levels, and reduce storage costs.