The goal of an Amazon FBA seller is to sell products that people want and that have a high demand. It is important to choose a niche that is not too competitive, but that has a high volume of searches. If there are no other products in the niche, you may have a hard time making a profit. You should try to sell items that are in the range of $20 to $50, since Amazon customers aren’t likely to spend more than that on a product they don’t know.
The first step in setting up an Amazon FBA account is choosing a category for your products. You can either create a new product listing or switch your existing listing to FBA. Once you’ve done that, Amazon will generate barcodes for each product, which you must stick on your packages and ship to Amazon. The benefits of using the FBA program over traditional listing are clear: you can ship all of your products at once, instead of packing them separately and sending them to different warehouses. In addition to generating barcodes for each product, Amazon will scan them on arrival to make sure the products are ready to ship.
Amazon FBA sellers typically have profit margins of 15 to 45 percent. Higher-priced items may be easier to sell, but they may require more investment. Plus, profit margins for high-priced items can’t be as high as for products under $25.