Ultimate Amazon FBA Cheatsheet

Introduction to Amazon FBA

Amazon FBA (Fulfillment by Amazon) is a service that allows sellers to store products in Amazon’s fulfillment centers. When orders come in, Amazon handles picking, packing, shipping, customer service, and returns. This powerful business model enables entrepreneurs to build scalable e-commerce businesses without managing logistics. FBA gives sellers access to Amazon’s massive customer base, including Prime members, while freeing up time to focus on product development and marketing.

Core FBA Concepts

FBA Business Models

Model	Description	Startup Cost	Complexity
Private Label	Create your own branded products	$3,000-$10,000+	Medium-High
Wholesale	Buy directly from brands/distributors	$2,000-$5,000+	Medium
Retail/Online Arbitrage	Buy low, sell high from retail/online	$500-$2,000	Low-Medium
Dropshipping	Sell products without inventory	$0-$500	Low

Key Amazon Seller Accounts

Individual Seller: $0.99 per sale + fees (up to 40 items/month)
Professional Seller: $39.99/month + fees (unlimited items)

Step-by-Step Process to Launch an FBA Business

1. Research & Product Selection

Criteria for winning products:
- High demand (1,000+ monthly sales)
- Low competition (few reviews)
- Profit margin >30% after all fees
- Lightweight (<5 lbs) and small
- Not restricted by Amazon
- Consistent demand (not seasonal)
- Price point $15-$50
Research tools:
- Jungle Scout
- Helium 10
- AMZScout
- Seller App
- Amazon Best Sellers list

2. Sourcing Products

Domestic suppliers:
- Trade shows
- Wholesale directories
- Direct outreach to manufacturers
International suppliers:
- Alibaba, Global Sources
- Importing considerations:
  - Request samples before bulk orders
  - Verify suppliers (Gold suppliers, Trade Assurance)
  - Negotiate MOQ (Minimum Order Quantity)
  - Understand incoterms (FOB, EXW, DDP)

3. Creating Your Amazon Listing

Optimizing product listings:
- Keyword-rich title (max 200 characters)
- Bullet points highlighting benefits
- Detailed product description
- High-quality images (7-9 images)
- A+ content (for brand registered sellers)
- Backend search terms

4. Shipping & Logistics

Shipping options to Amazon:
- Air freight (faster, more expensive)
- Sea freight (slower, cheaper for large shipments)
- Express courier (DHL, FedEx)
Required documentation:
- Commercial invoice
- Packing list
- Bill of lading
- Certificate of origin (if applicable)

5. Inventory Management

Inventory planning:
- Reorder point calculation: (Daily sales × Lead time) + Safety stock
- Seasonal inventory planning
- Inventory performance index (IPI) monitoring

6. Launch & Marketing

Launch strategies:
- PPC campaigns
- Early reviewer program
- Social media marketing
- Email list building
- Promotional pricing

Amazon FBA Fee Structure

Standard FBA Fees

Product Size Tier	Fulfillment Fee (Standard)	Monthly Storage (Jan-Sep)	Monthly Storage (Oct-Dec)
Small (<1 lb)	$3.22	$0.87/cu ft	$2.40/cu ft
Medium (1-2 lbs)	$4.71	$0.87/cu ft	$2.40/cu ft
Large (2-3 lbs)	$5.67	$0.87/cu ft	$2.40/cu ft
Large (3-20 lbs)	$5.67 + $0.30/lb above 3 lbs	$0.87/cu ft	$2.40/cu ft

Additional Fees

Referral fees: 8-15% (category dependent)
Long-term storage: Items stored >365 days: $6.90/cu ft or $0.15 per unit
Removal/disposal fees: $0.25-$0.60 per unit
Returns processing: Equal to fulfillment fee

Optimizing Amazon FBA Operations

Inventory Management Best Practices

Monitor sell-through rate (sales velocity ÷ inventory)
Avoid stockouts and excess inventory
Regularly check storage fees and long-term storage fees
Consider Amazon’s restock limits when planning inventory
Use inventory forecasting tools

Product Ranking Factors

Sales velocity (recent sales history)
Conversion rate
Click-through rate (CTR)
Review count and rating
Completed purchases
Listing quality score

PPC Campaign Structure

Campaign types:
- Automatic campaigns
- Manual campaigns (Exact, Phrase, Broad)
- Product targeting campaigns
- Sponsored Brand campaigns
- Sponsored Display campaigns
PPC optimization metrics:
- ACoS (Advertising Cost of Sale)
- TACoS (Total Advertising Cost of Sale)
- CTR (Click-Through Rate)
- Conversion Rate
- Impressions

Common FBA Challenges & Solutions

Challenge	Solution
Account suspension	Maintain strict compliance; have appeal letter ready
Negative reviews	Respond professionally; address product issues quickly
Hijackers	Register your brand; use transparency codes
Inventory stockouts	Implement inventory forecasting; use buffer stock
Rising PPC costs	Optimize for relevance; focus on converting keywords
Cash flow issues	Use inventory financing; negotiate supplier terms
FBA fee increases	Regularly review profitability; adjust pricing
Competition	Differentiate with better quality/features; build brand

Best Practices & Pro Tips

Protecting Your Business

Register your brand with Amazon Brand Registry
File for trademarks early
Use Amazon Transparency program
Set up automatic notifications for listing changes
Document all supplier communications
Keep detailed records of all shipments

Scaling Your FBA Business

Expand to international marketplaces
Develop complementary products
Implement email marketing for repeat purchases
Build an off-Amazon presence (website, social media)
Consider Amazon advertising outside PPC (DSP)
Optimize financial operations (cash flow, taxes)

Tax & Legal Considerations

Collect sales tax appropriately
Understand economic nexus laws
Consider setting up an LLC or corporation
Maintain separate business accounts
Track all business expenses
Set aside money for quarterly tax payments

Resources for Further Learning

Tools & Software

Product Research: Jungle Scout, Helium 10, AMZScout
Keyword Research: Merchant Words, Keywords Everywhere
Listing Optimization: Listing Dojo, Sellics
Inventory Management: Inventory Lab, SoStocked
Accounting: QuickBooks, Xero, TaxJar

Communities & Education

Amazon Seller Forums
Reddit r/FulfillmentByAmazon
Facebook groups (Amazon FBA High Rollers, FBA Today)
Industry conferences (Prosper Show, Seller Summit)
YouTube channels (Jungle Scout, Helium 10, Private Label Journey)

Latest Trends in Amazon FBA (2025)

Voice search optimization
Video-first listings
Sustainable and eco-friendly products
Brand building beyond Amazon
AI-powered repricing and optimization
Virtual bundling options
Supply chain diversification

Remember: Success with Amazon FBA requires continuous learning, testing, and adaptation. Stay updated with Amazon’s policy changes and marketplace trends to maintain your competitive edge.