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8-Point Checklist for New FBA Sellers

  • Jul 20, 2016 | Gene Marks

So you’ve read quite a bit about Fulfillment by Amazon (FBA) and decided you want to take the plunge.

Like many new FBA sellers, you might be overwhelmed by the sheer amount of information for beginners.

To help, we put together this checklist to help guide new FBA sellers through the process of starting up. It’s a collection of resources, must-dos, and tips that’ll ensure a smooth and successful launch.

1. Marinate yourself in Amazon Seller University

When you register for a seller account, you will get full access to Amazon Seller University. Here’s the description: Seller University helps you gain insight into Selling on Amazon, some tools and policies for sellers, and the products and services that can help you swiftly grow your business.

Amazon also periodically updates its Amazon Seller Education YouTube channel with helpful videos for sellers.

2. Validate your product idea

Before selling on FBA, it’s best to try and validate the product you want to sell. 

What does “validate” mean?

Product validation is a business process that’s meant to reduce risk by getting an informed hypothesis of the product's market demand. Check out websites of veteran FBA sellers like Scott of The Amazing Seller for easy validation techniques.

3. Find a supplier

You don’t have to go to the first supplier you meet. Always gun for the best and most secure deal. Look up reviews and testimonials from past clients.

4. Set product pricing

Check out sites that monitor price trends for Amazon categories, such as CamelCamelCamel. This will give you an idea what the competitive price is and will allow you to compute for a price that will cover your costs and still profit.

5. Sort out the legalities: Talk to a CPA

It’s best to stay on the good side of the IRS. Enlist the help of a CPA and ask for help deciding how to register your business, what taxes will be imposed on you and your sales, and what permits you should acquire. Avalara TrustFile has a Sales Tax Guide for Amazon FBA Sellers you can study ahead.

6. Learn how to run PPC campaigns

PPC or pay-per-click campaigns are the go-to advertising strategy for FBA sellers. Because of the sheer number of products and sellers on Amazon, you need to run your own marketing efforts to get better sales. Check out this PPC for FBA guide on Jungle Scout.

7. Set a budget and keep an emergency fund

Budget for your product inventory and don’t forget to account for Amazon fees and the cost of supplies you’d need. Check out the labeling and packaging requirements on the Amazon Help Center. Keeping an emergency fund will give you flexibility in case of uncommon issues.

8. Always have a learning mindset

Truth is, FBA sellers always have to be hungry for new information and updates in the FBA space. The rules of the game always change, and you’re in a good position now because you get to learn the latest techniques without carrying the heavy load of outdated tactics.

Happy selling!

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
It's Gene!
Avalara Author
Gene Marks
It's Gene!
Avalara Author Gene Marks
Gene Marks is a columnist, book author, CPA, and owner of Marks Group PC, a technology and consulting services firm. Gene writes every day on business, politics, and public policy for the Washington Post and weekly for Forbes, Inc. Magazine, Entrepreneur, and the Huffington Post.