Home » Business Ideas » Amazon FBA » Starting an Online Business in India with Amazon FBA – An Ultimate Guide

Starting an Online Business in India with Amazon FBA – An Ultimate Guide

In the list of businesses to earn money online, selling on Amazon is on the top these days. More than half of the total sales on Amazon come from third-party sellers which is already a big number. And more than 2 million people are selling on Amazon worldwide. As amazon gives the seller privileges to stay free from the extra work like packaging, delivering, exchanging, etc. In this article, we will talk in details all about starting an Amazon FBA business in this article.

From the past few years, people in India are also choosing Amazon FBA as a business option and getting benefited from it. You can also take advantage and can enjoy all the perks provided by them. 

Learn about these top 8 marketplaces where you can start selling your products online and start an online retail business.

What is Amazon FBA? 

Amazon FBA stands for Fulfillment by Amazon. In this, you store your product in amazon’s warehouse. They pack and deliver orders to the customer and provide customer service and also handle the exchange of the products. 

Amazon is one of the leading e-commerce platforms in India. It had approximately 31.2% market share in India in the year 2018. It is the largest online store in India. Thus, doing business with Amazon FBA can help your business to grow rapidly and reach more customers in different parts of the world. 

How to Start a Business Online in India with Amazon FBA- Step-by-step? 

Starting your business online with Amazon FBA is not as hard as you think about it. You can easily start a business online in India with Amazon FBA. 

Here are some steps that you need to follow to start your business online in India with Amazon FBA : 

Step 1: Set up Amazon Seller Account

Without creating an amazon seller account, you cannot have FBA business. Before starting an Amazon FBA business you will have to make an Amazon seller account. You can skip this step for the last but if you have decided to start a business with Amazon FBA, you don’t need to delay it anymore. 

Here’s how to set up Amazon seller account: 

  • Scroll down to the footer of the amazon’s website.
  • Choose the option labeled “Make money with us”.
  • There will be a link below the heading as “ Sell on Amazon ”. Click on the link
  • On the top Sign-in Information section of the registration form, type your name and email address. Confirm your email and choose a secure password.
  • Click on “Agreement”  and read the agreement. 
  • Enter your legal name of the business in the Legal Name field of the form. 
  • Choose a name that you would like to be displayed.
  • Add your address and phone number in the necessary fields and press continue.
  • Fill all the details and proceed to identity verification.
  • After the verification process, click on the continue button and proceed to the final screen & confirm.

By following these steps you will easily set up your professional Amazon seller account in one go only.  

I’ve shared a detailed step by step process about how to register as a seller on Amazon in this article. Please go through it.

Step 2: Pick your Product Niche.

Picking the product niche is the hardest part when you are starting your Amazon FBA business online. As it is confusing to decide a niche that you would like to sell. 

Here best way to pick a product niche on amazon: 

  • Write down the areas that you are passionate about selling online.
  • Think about all the products that you can offer to your customers related to the areas which have written above. 
  • Shorten the list by keeping only the products in which you are highly interested.
  • Narrow down the list to 3 to 5 areas.

By choosing the products from the areas which you are most interested in, will make your task easier to write about product details, advertising copy, or blog posts. 

After knowing the areas to cover, go to the next step.

Step 3: Engage in Product Research 

Product research is a very important step that needs to be done with a lot of patience. This step will consume more time of yours as compared to other steps. But, you have to search carefully for the products which you have finalized in the above step. 

Here are some steps to follow to research a product like a pro: 

  • Random Product Searches

    Search for the products on Amazon, eBay, etc. to know how they are represented in the e-commerce world. You have to check whether your product is lying in the range of $10 to $50, if yes, then you are going in the right direction. Products which lie in this range tend to have more purchase than the other products. And if not, then skip that product.

    You can also search for the product on the google search bar to make the process a bit easier.
  • Find products which have less than 500 reviews

    Search the product on amazon, if you see your competitors having reviews more than 500, don’t choose that product. As it will get hard for you to sell your product because people are most likely to buy the products having more reviews.

    Products having less than 500 reviews will make a better choice for you.
  • Check out the sale of top 10 product in the list

    If only product number one has the sale above 5000 and other items have a very low amount of sale as compared to the first one, then you are looking for the wrong product. In this case, cut off the product right away from your list as the details of this sale shows that it is a slow seller. 

Step 4: Establish your Product Sourcing

Before starting a business and selling your products with Amazon FBA you need to find a source from where you can get the product at a reasonable rate. You will not be able to make a good profit from your business if you will not have the right sourcing option for your product. When choosing the provider you should never compromise in the quality of the product. 

Here are some steps to follow when choosing a supplier:

  • Test the Product

    The product which you have chosen to sell needs to pass the testing stage. If you have never used that product earlier, then you should first check the product manually by yourself as delivering a genuine product will attract buyers and will also increase the sale of your product.  Thus, testing the product is an important part of this process.
  • Source Products for Amazon FBA

    Find a supplier who is selling the product with good quality and is in your budget. You have to contact many suppliers before finalising the one because the cost is the major criteria which will help you in deciding the right one.

    You can visit local trade shows to know the leading providers of the product which can give you the product at wholesale prices. Or you can go to various local manufacturers to get the product at reasonable rates.
  • Research About the Shipping Process

    If the shipping price will be high then all of your attempts will go in vain. The wholesale prices will be of no use if shipping prices will be high. To save your profit margin being eaten up by the shipping costs, you have to select the supplier wisely. Select a supplier who has affordable shipping prices for you.

    The main shipping problem arises when you choose a supplier who is overseas. And  there are many rules and regulations for the shipment from overseas. Sometimes shipment gets delayed due to various government procedures. The solution to this problem is to already have some extra stock of the products so that little delay will not affect the sale of your product.
  • Ship Product

    After doing all the steps mentioned above, you are set to ship your products. You may bring these products at your address and prepare them to get shipped to the  Amazon fulfilment center, or you can directly send them to the Amazon fulfilment center. All you need to do is to follow the guidelines provided by Amazon to prepare and ship orders. 

Step 5: Establish Your Brand

This step can be done at the starting of the process or you can do it when you are ready with your first batch of the products. You can do this step whenever you want, but cannot skip it. Establishing your brand is equally important as compared to all the other steps mentioned. You can make your brand stand out from the rest by following some easy tips mentioned below. 

  • Brand Name

    Choose a unique brand name that stands out. Try to get a brand name that has a domain available. If your brand gets successful, you can also make a website of it if the domain is available. You may take help from google to find a brand name.
  • Brand Logo

    Create a brand logo that is interesting and different from the rest of the crowd. You can design your own logo using free tools like LogoMaker and Canva. Both of these tools are easy to use and have many designs available. If you want, you may take the help of professional logo makers to design a logo for you.
  • Brand Tag-line and Theme

To make your brand unique and easily recognizable, you need to decide a theme and stick to it. You also have to make an interesting tag-line of your brand like KFC, McDonald’s that people can remember easily. This will create a unique identity for your brand.

Step 6: Create Your Product Listings

This is the step where you have to use your brain one hundred percent. When listing your product on Amazon, you have to be creative to attract most of your potential buyers. To make your buyers take buying action, you should put all the related information to the product.

Some key points to know when listing product:

  • Product Photos

    Use professional product photos which show the various details and features of your product. Because most of the time buyers decide to buy products by seeing the pictures only. If pictures will be of low-quality or less informative, it will decrease the chances of it to make a sale.

    Hire a professional photographer to take pictures of the products that you want to list on Amazon. This will make the buyer take buying action. You can also use third party Amazon FBA product photography services.
  • Product Titles

    Write easy and relevant titles that can attract the audience. You don’t have to write long titles, just keep them short, unique, and clear. This will help in drawing the attention of the users from the search bar to your product.
  • Product Description

    The product description needs to be written carefully. Every small detail about the product should be written in the description section as a customer tries to gather all the information about the product from this section. And never forget to write key features of the product in the description.
  • Other Relevant Options

    Add every possible information that is important for the buyer before buying your product to build trust.

    Information like warranty, installation details, colors, etc. should be added to help the customer make the final decision. 

Step 7: Advertise Your Products

After listing the product, increasing your sale is the next part. Without advertising your product right you will not get the desired results. Advertising is the key to increasing sales of a product. 

  • Social Media Advertising

    Social media is the biggest platform where you can find your potential buyers. Take help from influencers to market your product on a large scale. Give them products for free and get back some valuable reviews from them. Or you can use other social media promotion methods like paid advertising.

    Build a social media presence of your brand to increase awareness and brand value.
  • Pay per click Advertising

You can take help from a digital marketing agency to get help in starting a campaign. PPCs are a cost-effective and easier way to reach a large group of audience. The best part about PPC is that you can customize your campaign by age, location, gender, and budget.

  • Email Marketing

    Email marketing is the most powerful way to market a product. Make an email list of people that might like your product. Pitch these people by emailing them. This will help you in getting many leads. 

How Amazon FBA Works in India?

Amazon FBA helps you in increasing online sales by allowing you to sell in the large market acquired by Amazon. They give you access to Amazon resources like customer services, fast and free services shipping for your products. 

In this, you just have to send your products to Amazon fulfilment centers and they will take care of the rest of the process. 

Step 1: Send Products to Amazon

Amazon has a large number of fulfillment centers where they store the products sent by you. You just have to tell them what products you are sending then and they will tell you the shipping address for the warehouse.

Step 2: Amazon Sorts and Stores Products 

After receiving all the products from you, amazon sorts and stores your product in the warehouses. These products are kept with full safety in the warehouses. 

Step 3: Customers Buys a Product

When a customer buys your product, Amazon takes care of entire transactions. They accept the payment on behalf of you and automatically update your inventory. 

Step 4: Shipping of Your Product

Amazon packs your product into a box and ships it to the customer’s location. 

Step 5: Amazon Handles Customer Service  

After delivering the product to the customer, amazon sends them follow ups on receiving packages and asks them for feedback. 

They handle all the returns and inquiries of the customers. 

Step 6: Get Paid 

You will receive your payment every two weeks. Profits made by you will be directly deposited by amazon into your bank account after totaling up your sales and deducting the seller fees. 

Benefits of Using Amazon FBA

Amazon FBA proves to be one of the best ways to grow your business when you are just starting out. It gives you a chance to showcase your product in front of a large audience. 

There are some more benefits of using Amazon FBA: 

  • Low Shipping Rates

    Amazon gives you discounted shipping rates. And also give these discounts to your customer by giving them free delivery and fast two day delivery for the prime members. This is the most important factor which helps in increasing your product sales.
  • Managing Returns

    If a customer is not satisfied with the product, they ask for return or exchange of the product. And dealing with these kinds of issues is made simpler with amazon services. Amazon manages all these returns and inquiries of the customer on your behalf.
  • Quick Delivery

    Amazon provides the fastest delivery services to all its customers worldwide. Amazon has many fulfillment centers across the world. Thus, they can deliver your product to any location in the world in less time.
  • Large Storage Place

    When you work with amazon you don’t have to worry about how much less space you have for storing products. If you have high inventory performance scores, you get unlimited storage in Amazon warehouses.  

Some Tips to Successfully Sell on amazon FBA for beginners

Earlier in the article we have discussed some tips while starting your Amazon FBA business that can help you out in step 5 and step 6. 

Some more tips are mentioned below to make your business successful on Amazon FBA: 

  • Start Small

    Start your business on a small scale initially. Increase it slowly when you have a streamlined and organized process.
  • Build Brand

    To make your brand stand out from all the other brands on Amazon, you have to build your own brand. You can use different packaging for your product when delivering them.
  • Answer Questions

    Use the question answers section of the amazon at fullest. Anyone can submit a question in this feature, they don’t have to buy a product to submit a question. You have to stay active while answering all these questions.

    You can also ask your friend to submit some questions that are usually asked for your product. Later, you can answer all those and increase engagement.
  • Get Review

    This is the most important tip, you have to focus on getting good reviews from the buyers of your product. They can help you in giving genuine feedback. And it is proven that the products having good reviews from the customers are more likely to make sales. 

Conclusion


Amazon FBA can help all those people who are starting an online business in India. It allows you to enjoy the privilege of the largest fulfillments network in the world. By working with Amazon, you can take advantage of their amazing customer and storage services.

Amazon is the most trusted brand by customers, thus working with amazon will give many benefits. Your brand will get recognition as well as the trust of the audience.

How much money can we make from an FBA business?

The sale of a particular product depends on various aspects. The income does not remain constant in business, so it is hard to tell what exact amount you can earn from an FBA business.
Thus, it is advised to choose your product wisely and know the demand for the product you want to choose.

What is private labeling?

Private labeling means approaching a product factory, to deliver you the same product but having your brand logo on it. 

Like, you can approach a Kurti factory and pay them to supply Kurtis with your logo on it. This is called private labeling.

About Nandini

Nandini Yogi is Co-creator and Senior Editor at Online Business in India . She is Writer by Heart and Business Developer by Profession. You can connect with her on LinkedIn and Instagram.