Are you thinking of starting an Amazon FBA business in 2024, but don’t know where to start?
Here’s what you’ll need to get the business up and running this year.
Amazon Seller Central
Think of Amazon Seller Central as your business’ control center.
It’s where you add listings, manage your products, run your ad campaigns, and respond to customer messages and feedback. The Seller Central dashboard is where you choose between fulfillment options (FMA vs. FBM) and check your account health, just to name a few functions.
There are two options for signing up to Seller Central, but I always recommend the $39.99 professional plan. It pays for itself if you sell more than 40 items a month (which most serious sellers should), and it also gives you a small arsenal of tools and gadgets to make earning profits easier.
The best part is that Amazon doesn’t charge you the $39.99 unless you have active listings after the initial sign-up.
Let’s say you pay $39.99 for the Seller Central plan, but don’t list any items for eight months. Your account won’t be charged the $39.99 again until you’ve added live products. This is terrific for sellers who want to become acquainted with Seller Central before shipping over a large bulk order.
Check out my recent 2024 update to signing up for Amazon Seller Central on my YouTube channel.
An LLC and EIN
Forming a Limited Liability Company (LLC) is recommended for protecting your assets from legal trouble in case legal issues arise in your Amazon business.
You don’t want to lose your house, car, and property because you forgot to put a warning label on your plastic packaging, right?
EIN stands for Employment Identification Number. An EIN is free and is needed to register your business bank account. It’s effectively a social security number for your business. Learn more about how and where to get one here.
I don’t recommend starting any business without an LLC. My LLC has likely saved me from legal issues countless times since I began selling.
Business Bank Account
Amazon allows users to start an account with personal bank accounts, but I highly suggest against doing so. Opening up a business bank account gives sellers an array of useful advantages:
- Easier to track finances
- Legality (depending on your location)
- Gives your business increased credibility when making large purchases
My go-to is through the trusty Bank of America, but there are limitless options.
Mercury (Non-U.S. Residents)
For international sellers wanting to sell in the U.S., opening a U.S.-based business bank account is where you’ll most likely hit trouble.
As of 2024, the best option for non-U.S. sellers is through Mercury. The company touts itself as “banking for startups,” and “Business banking as it should be.”
Here’s what you’ll need to sign up:
- U.S. Company Name and Type
- EIN Number
- A short description about your business
- Industry (It will most likely be e-commerce)
Product Research Software
One of the more difficult elements of an Amazon business is finding a product to sell and earn profits from. A successful product has to fill a market niche, is within budget, and isn’t saturated (just to name a few requirements).
This step is difficult, and it’s honestly what stops most aspiring sellers dead in their tracks.
So how do you find a profitable product when everyone’s trying to do the same?
The answer? Product Research Software
Product research software gives you an alternative to manually scrolling Amazon.com for product ideas. It works by using AI to sift through millions of Amazon products. Users can input metrics to narrow down their search criteria to hone in on products with the best chances of success.
Googling “Amazon Product Research Software” will give you plenty of choices to choose from.
I always champion Helium 10 (check out my discount code in the link), but any software will do the trick.
Content Creation Tools
“Content Creation” covers a lot of bases, and to be honest, it’s become a bit of a buzzword recently.
When people mention creating content for an Amazon product, they’re talking about making fun, interactive media to help people learn about, and ultimately purchase your product. To put it simply, content creation is marketing.
Content can be just about anything that shows up on someone’s screen, a TikTok, Blog, Email, Website link, a YouTube style video, etc.
But what’s an easy way to create content without breaking the bank, or having to take a marketing course?
Canva – I recommend this software for anyone even thinking about creating content. From stock videos to pictures, simple animations, and even websites, Canva can do it all. There are thousands of templates to choose from, which cuts down on decision-making and creative thinking.
Da Vinci Resolve (For Video Editing) – A free and no-frills video editor that’s perfect for new editors. It does have limitations, but its free version comes packed with features.
Chat GPT – I’ve adopted ChatGPT to generate creative ideas for my business. For example, I might prompt it to “Give me 20 creative email subject lines,” and use its answer to fine-tune a few options.
Adobe Suite – This isn’t a free resource, but Adobe Creative Suite will cover everything you need for creating content.
Product Video and Photography
Don’t make the mistake of hiring a “photographer” from a Craiglist ad like I once did (never again).
Trust me, splurging on professional product photography is well worth it.
These services are pricey for a reason, but they offer incredible value. Not only will they take care of your product photography and videography, they also have experience with best practices on Amazon, which is invaluable.
The issue I hit with my Craiglist photographer wasn’t that he couldn’t snap a picture (can’t we all?), but he didn’t know the first thing about photography specifically for Amazon products. I ended up having to do extra work, and spending more as a result.
I’ll list a few options below but I’m in no way sponsored or affiliated with these companies.
Dripped Pack
This company has recently become a favorite for folks in my AWA mentorship program. I’ve not heard a bad review, and their gallery of work is impressive.
Packages start at a steep $2,097, but hear me out. This company does Amazing work. And given how hard it is to find good work these days, I’ll gladly pay a bit extra to have it done perfect the first time.
Soono.Co
I’ve personally used this company several times, and am always impressed with their work and professionalism.
Again, the big advantage is that they’re experienced with Amazon photography, and understand what’s needed for a high-converting e-commerce photoshoot.
Twisted Frame (For Canadians)
Many Canadian sellers sing praises about Twisted Frame, located in Toronto.
I don’t have any personal experience with them, but I’ve heard incredible things.
At Least 10 Hours a Week
Amazon Sellers should be ready to devote about 10 hours a week to their business; at least during the first 12 months or so.
Despite what other YouTube know-it-alls might tell you, starting a successful Amazon business takes much time, dedication, and patience.
Here are a few main reasons why a lot of sellers are surprised at the time commitment:
Product Research – The foundation of your business starts with a profitable product. And to be frank, finding one takes time. The product you choose will make or break your Amazon business, and so it makes sense to get this step right.
Shipping Times – Due to supply chain issues, shipping times have increased in recent years. It takes around 40 days for sea freight from China to reach the U.S.
Brand Building – If you opt for private label (I highly recommend doing so), you never really stop building your brand. Brand building is effectively marketing.
Optimizing and Gaining Traction – It takes time to increase one’s organic ranking and begin seeing profits come in. There are countless methods to steer traffic and increase your listing’s visibility, but it rarely happens overnight.
Learn more about keeping Amazon margins healthy in 2024 here.
General Problem Solving – This is the biggest time dedication. Amazon’s constantly changing its policies, fees, and protocols.
On top of that, product research, product sourcing, shipping, packaging, photography, videography, and much more takes place off of Amazon. That said, there are a lot of pieces to the Amazon puzzle, and it often takes time to put them all together.
Self-Accountability
Is running an Amazon business hard? Yes and no.
I can 100% say the first 18 months or so of my “business” were a struggle. I had no idea what I was doing, I was losing money left and right, and generally in a horrible state of mind.
But once I buckled down, learned from my mistakes, and started holding myself accountable, the business began to grow.
Not to scare you away, but here are a few cold hard truths so you’ll know what to look out for.
- You’re probably going to lose money before you see profits. This is a business, after all.
- The first 12 months are the hardest, but it gets easier.
- Product research will test your patience
- Expect stress levels to spike
Ask About My Amazon FBA Mentorship Program
Are you ready to start an Amazon side hustle?
My Amazon Wealth Accelerator (AWA) mentorship guides you through the entire Amazon FBA process and provides a community of support with others on the exact same journey.
You’ll get hands-on support from experienced sellers with your same goals and aspirations.
AWA gives you a much-needed safeguard from costly mistakes, dead ends, and failed product investments to efficiently reach your passive income goals.
So whether it’s solving issues with your Seller Central account, creative approaches to product research, scaling to new markets and niches, validating product ideas, customer service issues, and more, we’ve got you covered.
Learn more about it here.
