5 Tips to Get Started with Amazon FBA in 2021

5 Tips to get started with Amazon FBA in 2021Amazon FBA is a great way of making money, and it has been for many years now. But the problem is, it can also be very challenging and there’s lots of competition. 

As Amazon has continued to grow, more and more people have got started with running an Amazon FBA business, and it has become more competitive than ever. On top of this, you also have lots of suppliers in China trying to get in on the action too.

In this post, I want to give you 5 powerful tips to get started with Amazon FBA in 2021 so that you have a better chance of success against everyone else.


What is Amazon FBA? 

Amazon FBA means Fulfillment By Amazon. It involves selling products that you store within Amazon’s warehouses. They handle all the logistics for you, including refunds and returns. They handle the packaging, storage, and all logistical processes.

The great thing about this, and why lots of people do Amazon FBA, is because you don’t need to store inventory. It’s become very popular and people use it in all sorts of different ways of selling online. 

On top of this, when you do sell products, they are covered under the Prime deal, which means customers are offered free shipping and other benefits. On Amazon, people like to buy things that are covered under Prime.

There are various methods of running an Amazon FBA business, which I will get into a bit later, but there is definitely an opportunity to make money selling on Amazon.

Does Amazon FBA still work in 2021?

The big question is – whether it still works in 2021 after the rise in competition and various challenges. I am glad to say that it does still work. However, there are lots of people who are participating in Amazon FBA. There are people who have been doing it for many years and there’s also lots of new competition. 

You can succeed with Amazon FBA, you just have to outsmart the competition and work hard. Hopefully these 5 tips I am going to give you will help you succeed with your Amazon FBA business in 2021.

5 Tips to get started with Amazon FBA in 2021

Tip 1: Decide what method you will start with

As I mentioned before, there are various methods of running an Amazon FBA business. 

There’s retail arbitrage, which involves buying discounted products from stores, and selling them to make a profit on Amazon. 

There is the wholesale route, which involves buying products in bulk from well-known brands, and selling them on Amazon. 

There is also the private label method, which involves finding a product that you would like to sell and then finding a supplier somewhere (often somewhere like China) to purchase for cheap. And after this, branding as your own to sell.

It should be mentioned that the private label method that I just mentioned is the most complicated method to start with. It involves more moving parts. The other two methods are arguably a lot more simple to get started with. 

The most important thing for you to know if you are getting started with Amazon FBA – you need to decide what you’re going to start with, whether it’s going to be retail arbitrage, wholesale, or private label. 

Or…the alternative to all of those – you may want to get started by selling some old second hand goods that you have around your house. This is a perfectly fine way to start to get to know the process. Ultimately, you need to decide what your starting point is going to be.

Tip 2: Take your time on Product Research

Lots of Amazon e-commerce sellers know that one of the most difficult steps is product research, and deciding what you’re going to sell. The reason this is difficult is because there are lots of barriers to entry. 

Lots of products sell very well and are in high demand, but there is also far too much competition.

It could be that you’re competing with Amazon itself if they have moved into this area. 

If you look at the Amazon Basics line, they have moved into lots of areas to try and capitalize on popular products.

Other factors you should look into are things like price, product weight, and how much it’s going to cost you to ship. If you’re shipping from a supplier in China, and it’s a heavy product, it’s going to cost a lot in shipping which will eat into your profits. There are lots of things to look at. 

It’s very important to take your time on product research – but not too much time! Remember, you still need to get started with something. There is no “perfect product” and most products these days have competition, that’s just something you have to deal with. 

Still, you want to do some product research and make sure that you understand the various criteria that is important when you’re selling with Amazon FBA. You need to be calculating what all your costs are going to be, and whether you can make decent profits from that.

Tip 3: Use an Amazon FBA searching tool as a shortcut

5 Tips to get started with Amazon FBA in 2021Following on from the last point, product research is a tough process, and there are various tools out there that can make it easier. One of these tools is called Jungle Scout, which allows you to select all your criteria – things like price, weight, competition, and to search the Amazon database and look into various opportunities.

I do recommend using a tool like Jungle Scout. It’s also got some great training and other useful features. I definitely recommend it. However, I would also say that you need to be slightly wary of just using tools. You also need to understand how to manually look into opportunities. 

One of the reasons for this is that lots of people are using these Amazon software searching tools, and it can easily get saturated. Everyone is seeing the same opportunities, and you need to be quite smart with it, and use it to get ideas.

Having said that, it’s a good opportunity to start looking at various tools that you can use to make the job easier, because it’s not so straight forward. I highly recommend using a tool like Jungle Scout.

Tip 4: Try to Improve an existing market

As I mentioned before, selling on Amazon FBA isn’t easy. One way of succeeding (and this is really the case for any business) is to be better than your competitors.

One thing I recommend is to find markets where you can see products that sell well, but they perhaps have bad reviews or reviews with a lower average. You can look at those reviews, and see what issues customers have had with the products, and you can potentially solve those problems. If you were to go down the private label route, you can work with a supplier on making a product that solves those problems.

It’s a good idea to improve on an existing market, as this will mean your listing is unique and solves a problem. Problems that you can talk about while marketing with the images, and also the product description. 

There will also be situations where you’re going into markets, and you’re perhaps not improving on it, but rather just joining the bandwagon, and this is absolutely fine, but keep in mind that there are opportunities where you can improve a product, and solve the customers issues.

Tip 5: Keep moving forward

To start an Amazon FBA business in 2021, it’s not easy but the important thing is to keep taking the next step and keep moving forward with it. Yes, you will be competing against some brands, and you’ll even be competing against Amazon – though hopefully you don’t choose products that compete with Amazon itself! 

You need to keep moving forward to learn the process and to also improve things with your products. With a brand new listing, you won’t have any reviews but over time it will improve and you can tweak and eventually get your listing to the top.

The most important thing is to keep moving forward.

To sum up, Amazon FBA absolutely does still work in 2021. The 5 tips I have given above are not everything you have to do, but they are great for getting started. Those tips will greatly help you succeed with your Amazon FBA business. 

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