How to Create a Profitable Amazon FBA Business with $2000 or Less
It's the Zab Twins, and we're excited to welcome you to our blog. Today, we're presenting the top five strategies you can use to kick-start your Amazon FBA business on a budget! But before we dive into it, we're sure you're wondering why you should be reading this, right?
The Zabierek duo are professional e-commerce coaches with expertise in scaling profitable businesses. We've helped hundreds of entrepreneurs grow their brands on Amazon FBA. We aim to help new sellers ensure success from day one and earn big from Amazon FBA.
Over 56% of private-label sellers earn $5000 per month, and 59% enjoy a profit margin of over 16%. Achieving this requires a particular investment, both money and time. But what if you're on a budget? That's what exactly we're here to help you with!
In this guide, we'll tell you fantastic strategies you can use to start selling on Amazon FBA without breaking the bank. You can watch this YouTube video to discover a step-by-step guide to creating a profitable Amazon business with little money!
How to Start an Amazon FBA Business Under $2000: 2022 Step-by-Step Guide
Every month, hundreds of aspiring e-commerce sellers join Amazon hoping to make $100,000 in online sales. But most of them quit on the very first day because they believe they don't have the budget to get started. We're here to tell you: it's possible. You can build a seven-figure Amazon business with $2000.
With the right strategies and essential information, you can also grow a profitable Amazon FBA business within a month. Excited to find out how? Here we'll reveal five straightforward steps you need to take to get started selling on Amazon:
P.S. if you'd rather watch a video instead of reading, you can click here, where we break down the steps to start selling on Amazon for $2000 or less.
1. Taking Advantage of a Decoy Launch
Using a decoy launch is an excellent way of testing a product on Amazon before investing in it. How does that work?
Simple: start by using robust tools like Pinterest, Viral Launch, and Helium10 to find products that are in demand and match your budget. Aim to choose an item that hits the following marks to ensure you don't exceed your budget:
- It costs $5 or less
- It's lightweight and small
That way, if you order 200 -250 units, your total won't exceed $1000 to $1250. Moreover, choosing a small and lightweight product ensures you don't have to spend hundreds of dollars on shipping costs.
Ideally, your product should cost $3, be lightweight and easy to ship, and attract customers.
Bonus Tip: You can enjoy 20% off your first six months on Helium10 with code “THEZABTWINS6M20” or 10% off forever with “THEZABTWINS10!” Happy product hunting!
2. Sourcing Your Product to Run Tests
Amazon is all about making data-driven decisions. Your goal is to ensure the product you're investing in has demand, captures customers, and offers a positive ROI.
A fantastic way to achieve this is by buying 20 to 50 units of your desired items from e-commerce markets like AliExpress or Alibaba. Once your products reach Amazon's warehouses, you can launch your first product line.
At this point, you want to identify whether your item attracts impressions, clicks, and sales. You can use images from Pinterest, AliExpress, or other free websites and create copies by checking your competitors' product listings.
Remember, your primary goal is to determine whether you're using the right keywords and selling a high-demand product, not to make sales. If you notice a lot of impressions and clicks but no sales, you need to optimize your product listing. But it also gives you confidence that you've got a high-demand item.
Overall, this strategy allows you to test the demand for different products without wasting money on bulk items.
Bonus Tip: You should create a virtual bank to ease the process of receiving, sending, and sharing money online. We recommend using a safe and robust virtual bank like Wise to protect yourself from hidden fees, interest, and getting overcharged. Plus, you can work with sellers and suppliers in over 80 countries!
3. Ordering Bulk Items
Once you find a product with high demand and lures in impressions and clicks, it's time to start talking to suppliers and manufacturers. As discussed above, your item should cost $5 or less and be lightweight.
After spending $1250 on sourcing products, you'll have to consider shipping costs. Typically, it'll be 30% of your total order, meaning $375. That leaves you with a whopping $375 for advertising!
Bonus Tip: Save money and time by inspecting your products before you order them in bulk. Ideally, you should partner with a third-party quality control team like Movely who can provide you with in-depth inspection reports. As a result, you can get a clear understanding of your product and mitigate the risk of returns and bad customer feedback.
4. Optimizing Your Copy and Images
Pro Tip: write product descriptions yourself.
Next, you must optimize your images to captivate your target audience's attention. You can do this in three ways: use the images from your supplier, click Whitebox images yourself, or hire a freelancer from Fiverr.
If you select the third option, you can easily find professional photographers who'll get the job done for $100.
Bonus Tip: It’s always a good idea to run split and video user tests to determine how your target audience is responding to your product listings. If you’re on a budget, try using ProductPinion to get real-time feedback on how your ideal buyer interacts with your products, target keywords, and competitors.
5. Advertising and Launching Your Products
By now, we've tested our products and optimized content to beat Amazon's algorithm. The only thing left is advertising.
Amazon offers sellers on a budget two ways to charge advertising, and the one we recommend is the seller account method. Why?
Planning your launch allows you to take advantage of your credit card's 30-day statement and 21-day grace period. That way, you'll have 51 days to sell without worrying about paying off your credit! Furthermore, within those 51 days, you can count on making at least one to two sales, enough to pay for advertising.
Therefore, with the power of credit, you can start advertising, launching, and selling products without needing cash upfront.
The Bottom Line
Selling on Amazon is not impossible. You can start with a small budget and zero experience selling or dealing with products. Using a decoy launch can save you hundreds of dollars by allowing you to test the demand for an item in the e-commerce marketplace. Armed with that data, you can make informed business decisions.
Remember that support is one click away. If you want to grow your Amazon FBA business on a budget, you can book a free call with The Zab Twins to get real-time advice on fine-tuning your sales strategy.
But if you’re ready to grow your customer base and scale your business, check out the FBA Studio’s fantastic listing packages! With a single click, you can unlock copywriting, listing optimization, branding, and packaging services that will take your business to new heights. Get started today comparing their packages and pricings!