How Amazon FBA Works And How To Make Money From It in 2021

I believe that Amazon FBA is one of the greatest opportunities of our time to build a sustainable online business. Whether you want to make some extra money on the side or build a 7-figure brand, Amazon affords you the ability to create financial freedom.

Do you want to know how Amazon FBA works and how to make money from it in 2021?

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How Amazon FBA Works And How To Make Money From It in 2021- Audio file

How Amazon FBA Works And How To Make Money From It in 2021- Video transcript

Hey guys and welcome back to my channel. In this video I would like to go over how Amazon FBA works and how you can make money from it, so be sure to watch all the way through so you don't miss any of the important details as we do have a lot to cover.

Now, before I hop into this video, if you are new to this channel you're going to want to subscribe as I talk about the best ways to make a full time income with Amazon FBA and always get straight to the point.

So please subscribe and turn on your post notifications if you like channels that don’t waste your valuable time, with that said let's get right into this video.

Now, it's not too late to make money with Amazon FBA. Despite popular opinion, Amazon is not saturated. In 2020, Amazon had more then 1 million third-party sellers.

During the Holiday Season alone, customers ordered more than 1 billion items from third-party sellers on Amazon, with more than 140 million items ordered between Thanksgiving and Cyber Monday.

These statistics prove that there is no shortage of Amazon sellers. For those of you who don't know, Amazon FBA stands for Fulfillment by Amazon. This means that Amazon stores your products in one of their fulfillment warehouses.

When someone purchases your product from your Amazon listing, Amazon charges you a small fee to ship your product to customers automatically.

It's your job to market your product. That is the primary skillset of an Amazon seller. The more traffic you drive to your Amazon page, the more that Amazon will reward you and feature your product on their website.

This is one of the reasons why so many people are attracted to selling on Amazon. However, keep in mind that this is not a get-rich-quick business opportunity. Don't expect that you can just put up a product on Amazon and all of a sudden you will make a ton of money.

You have to do your part. This is why I want to share with you the hardest aspects of the Amazon FBA process that you need to master if you want to build a successful Amazon business.

If you decide to take on Amazon as an opportunity you want to understand the growth that exists. Nobody wants to get into a dying business opportunity. The more that Amazon grows, the more that you benefit long-term. In 2006 Amazon’s net sales were $10.7 billion, compared to $386 billion in 2020.

This figure does not include the impact of the marketplace, so the growth of Amazon’s impact on retail is closer to 30x. Amazon has continued to grow and it isn't expected to stop in 2021. More and more people are buying on Amazon and traditional retail stores are closing down.

Now, it's important to understand that Amazon has different websites based in different countries. If you want to sell in the U.S., this means that you have to have your inventory in Amazon's fulfillment centers in the U.S. This makes it convenient for Amazon to ship those products to customers that buy on

On the other hand, if you want to sell on Amazon in Canada or Amazon UK, that means that you have to set up a new Amazon listing on each of those websites.

Also, you would need to have inventory in the fulfillment centers in each of those countries. This is why most people choose to sell on one Amazon platform. is the best and biggest opportunity, followed by Amazon UK, Germany, other parts of Europe and Canada.

Now, let me give you the step-by-step process for selling on Amazon. But before we move on. As you can see, there are quite a few steps involved in building an Amazon business.

And I wouldn't recommend piecing together everything that I am sharing with you today by simply watching videos on YouTube. This is why I suggest investing your time in a great free training that can guide you through this process.

I recommend this training because this is the best training on the market and one that I have personally gone through. They walk you through step-by-step, every aspect of what it takes to start, grow and scale your Amazon business.

This training will build off of what I've talked about inside this video so I left a link for you in the description and if you're serious about selling on Amazon I encourage you to check it out!

So, the first step for selling on Amazon is to find a potential product that you can sell. I suggest coming up with as many ideas as possible by browsing the Amazon website. See what other people are selling. You don't want to invent anything. This is a big mistake that I see a lot of people make.

The fastest path to success is to find products that are already selling well and then to do research on those products to see how much money they are making. The trick is figuring out how you can differentiate yourself and make your product stand out from the competition.

Now, how do you find products on Amazon? Start by checking out the different categories and niches on Amazon's website. At first, you just want to browse categories that may be attractive to you. Ultimately, you want to sell a quality product that you believe in. And ideally, you want to choose a product that can solve a problem.

When you're looking for products, find ones that you can sell for over $10. In my experience, $15 is a sweet spot. If it's less than that, you won't make much profit from it. And keep in mind that more expensive products will cost you more to manufacture.

Once you've found a list of products that meet the 10 to $15 criteria I would suggest going to and finding manufacturers that can manufacture a product for you.

Once you've decided on a product, the next step is to set up your Amazon Seller Central account. From there, you would set up your Amazon listing and get your product packaging done.

Once your Amazon listing is ready, you ship your inventory to Amazon's fulfillment center and link that with your listing.

So how do you create a winning product listing? You want to have a product that is different from the competition. This could mean a higher quality product, a different design, cool packaging or unique product images.

You could also lower the price point of your product or bundle your products together. A greater number of reviews is also a great way to differentiate yourself from other products. Lastly, offering a bonus is also a great way to stand out.

Now, before you decide on a product to sell on Amazon you want to determine if there is a high enough demand for it. My favorite tool to determine this is a software called Jungle Scout.

This is actually a Google Chrome extension that analyzes the results on an Amazon listing page and tells you how much money products are making. I left a link for you in the description if you want to check it out.

It's really hard to find products and analyze them manually without a tool like Jungle Scout. Yes, it costs some money but it will make your life so much easier.

Now, as an Amazon seller, your product listing is everything. This is what will determine whether or not a potential buyer will click on your listing. This is why you must have a great Amazon listing page.

Once you find your supplier and agree upon a price with them, you need to create your brand logo and packaging. is a great platform to find freelancers who can design your logo, product images and product listing description at a relatively fair price.

The most important thing you need to know is how to market your Amazon products. If you want to be successful on Amazon this year and beyond, you have to be willing to market outside of Amazon.

The way that you overcome saturation is by creating a unique product that stands out or you could also get traffic from somewhere else. For example, you could run Facebook or Google ads to your Amazon listing.

Doing so will allow you to get more sales than your competitors will be getting on Amazon. In turn, your product will rank better and you will get more reviews. You could also find influencers on Instagram or YouTube that can promote your product.

This is how you build a legitimate business, one that isn't only dependent on Amazon. Eventually, if you desire to, you can build a brand on Shopify or create your own eCommerce website. There are many examples of Amazon sellers who have done this successfully

So this is how Amazon FBA works and how to make money from it. I believe that Amazon FBA is one of the greatest opportunities of our time to build a sustainable online business.

Whether you want to make some extra money on the side or build a 7-figure brand, Amazon gives you the ability to create that financial freedom.

Thanks for watching and please make sure to watch the next videos with more FBA tips that will show up right about now.

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