How to Build a $500k a Year Business Using Amazon FBA

Have you heard of Amazon FBA? If you haven’t then we have a real treat for you, because Amazon FBA is a service that has revolutionized product-based businesses. Allowing small entrepreneurs to create huge businesses easily. In this article we hope to give you some tips on how to build a $500k a year business using Amazon FBA.

Also called Fulfilment by Amazon, FBA is a series of warehouses around the world that does all the delivery for Amazon. A network that you can plug straight in to. You just send whatever product you want to sell on Amazon to FBA and it will appear on their website, eligible for Amazon Prime. Whenever an order comes in, Amazon does all the hard work making sure it gets to the customer in time.

Disclosure: Please note that some of the links on this page are affiliate links. This means that we may earn a commission, at no cost to you, if you decide to make a purchase after clicking through the link. Please understand that we have experienced all of these companies, and we recommend them because they are helpful and useful, not because of the small commissions that we receive if you decide to buy something through our links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

We have been interested in Amazon FBA for a few years, so went in search of an expert for some advice. Sam Priestley is a well-known Amazon FBA entrepreneur, having built several $500k plus businesses himself and written the go to guide on how to start an Amazon FBA business.

So if you are interested in how to build a $500k a Year business using Amazon FBA, here are Sam’s four top tips for building a successful FBA business. 

Tip 1: Be prepared for hard work

First up, Amazon FBA is a very simple business model:

1. Come up with a product that people want to buy.
2. Send it to Amazon and then let them do all the heavy lifting.

But just because it is simple does not mean it is easy. This is not a get rich quick scheme and it will take time and a lot of work to build. You need to be prepared to work hard.

The most common reason people fail at building an Amazon FBA business is that they give up too soon. They think it is going to be easy, and at the first problem give up. No! Designing a product, working with factories and marketing is all hard work.

But it is worth it. Making $10k+ a month is very achievable with an Amazon FBA business.

Tip 2: Do not just to buy stuff and try and resell it.

You’re not building a sustainable business or brand by doing that. Let’s say you find a great product that you can get cheaply and resell for a big profit.

You put in a lot of work and make good money. The problem is that pretty soon someone else will discover what you’re doing and just piggyback on your hard work, buying and selling exactly the same thing and driving your profit margin down.

Or the factories you buy from may realize just how easy Amazon FBA is and do it themselves! Instead look for factories that offer OEM (original equipment manufacturer) or white labelling. These are often the best products to sell on Amazon FBA!

Even if you’re just re-branding an item they already sell, it immediately stops anyone from being able to piggyback on your listings. Plus it doesn’t normally cost any more than just buying unbranded products.

You can get your branding done cheaply on Fiverr or 99designs.

Even better though is to improve on their products. Make small changes that help you stand out from the crowd and gives you something to talk about in your marketing.

Tip 3: Create a simple product

When coming up with new inventions or ideas it is easy to get carried away. But beware, the more complex your idea is the more that can go wrong.

You need to find the perfect balance: Not too big, not too heavy, not too complicated.

Here is a guide to choosing the best product for Amazon. But if you are only going to listen to one piece of advice, it is to keep it simple.

I really recommend staying away from electronics, or items with lots of moving parts. There is a lot that can go wrong, but even worse you might create a safety hazard!

Stick to items you understand and can easily test to make sure they are working properly.

Tip 4: Start with a small order

You may be tempted to order thousands of your first product because you believe it is going to be great and you get a big discount for placing a large order. I really recommend not doing that. It is better to earn a little bit less money but slowly scale up than to risk being stuck with thousands of items that you cannot sell.

Also. if you start small you will head off any problems that might happen with production. The factory may get something wrong, or there could be a defect in their machinery that you only notice much later.

By starting with a small order you can scale up as you go. Reinvest your profits, and next thing you know you’ll be an Amazon FBA tycoon.

Tip 5: Don’t neglect marketing.

“If you build it, they will come”. Is the biggest lie that gurus often spout. It is not true!

You need to convince people to choose your product from all the other ones on Amazon. If you are not sure where to start, check out this guide to get customers for your Amazon FBA business.

The key is to have a strategy in mind. Start building your social media following. Research Amazon advertising. Tell your friends and family all about your Amazon FBA business. But the best type of marketing is one that you have come up with yourself and no one else is using. So be creative and don’t be afraid to take risks.

Conclusions – How to Build a $500k a Year Business Using Amazon FBA

Starting an Amazon FBA business is a really great model that anyone can take advantage of and it has huge potential. If you can figure out the best products to sell on Amazon FBA and follow the tips above, you will be well on your way to making 6-figures a year from an Amazon FBA business!

Good luck!

Russell and Maleah

Related Articles

How to Start a Freelance Proofreading Business and Earn $200,000+ a Year

How to Proofread Anywhere and Make Money Online

How we Make Money Trading Stocks Online

How to Buy Real Estate for Pennies on the Dollar

How to Make $47,000+ per Year as a Freelance Proofreader

How to Make $800 per Week Selling Guitars on Ebay

Hopefully this article has helped you with some tips on how to build a $500k a year business using Amazon FBA. Starting an Amazon FBA business is not easy but if you find the best products to sell on Amazon FBA and work hard then you will have the best chance of success!