How to Start an Amazon FBA Business in 2025: A Step-by-Step Guide

Introduction

Amazon FBA (Fulfilment by Amazon) is still one of the best ways to make money online in 2025. But is it still worth starting? Short answer: yes. If you play it smart, use the right tools, and focus on automation, you can build a profitable business that runs with minimal effort.

This guide walks you through everything you need to know to launch an Amazon FBA business in 2025. Whether you're just getting started or looking to switch things up, we’ll cover account setup, product sourcing, and the key steps to making sales.

What is Amazon FBA and How Does It Work?

Amazon FBA is a fulfilment service that lets you store your products in Amazon’s warehouses while they handle picking, packing, shipping, and even customer service on your behalf. Instead of shipping products directly to customers, you send your inventory to Amazon, and they take care of the rest. This means you don’t have to worry about running your own warehouse or dealing with returns and customer inquiries. It’s a great way to scale a business while keeping operations hands-off.

Why Choose Amazon FBA?

Amazon FBA simplifies e-commerce by allowing you to focus on growing your business rather than handling logistics. Whether you're a beginner or an experienced seller, FBA gives you access to Amazon's massive customer base, making it easier to reach more buyers. With fast shipping and trusted fulfilment, your products are more likely to convert, helping you scale efficiently without needing your own warehouse or shipping team.

• Less work, more sales – Amazon’s fulfilment process allows you to focus on growing your business instead of logistics.

• Prime eligibility – Products stored in Amazon’s fulfilment centres qualify for Prime shipping, increasing conversion rates.

• More storage – You don’t have to keep stock at home or rent a warehouse, reducing overhead costs.

• Customer service included – Amazon manages inquiries, returns, and refunds, saving you time and hassle.

Step-by-Step Guide to Starting Amazon FBA in 2025

Step 1: Set Up Your Amazon Seller Account

Before you can sell on Amazon, you need to create a seller account. The process is straightforward but requires proper setup to avoid issues down the line.

1. Visit Amazon Seller Central and click “Sign Up.”

2. Choose between an Individual (pay per sale) or Professional (£25+vat/month) account.

3. Enter your business details, bank account, tax ID, and identification documents.

4. Complete Amazon’s identity verification process to activate your account.

Pro Tip: A Professional seller account is recommended if you plan to sell more than 40 items per month, as it helps save on per-sale fees.

Step 2: Understand the Costs & Fees

Amazon FBA isn’t free, and knowing your costs upfront will prevent unexpected expenses that could eat into your profits. The main fees include:

• Referral fees – A percentage of each sale (usually between 8-15%), depending on the product category.

• Fulfillment fees – Charges for storing, packing, and shipping products via Amazon.

• Storage fees – Monthly fees for keeping inventory in Amazon’s warehouses. Long-term storage fees apply if items sit for too long.

Using Amazon’s FBA Fee Calculator before purchasing stock helps determine profitability and prevents costly mistakes.

Step 3: Pick a Selling Model

There are several ways to sell on Amazon, and choosing the right model depends on your budget, experience, and risk tolerance:

• Retail Arbitrage – Buying discounted products from local stores and reselling them.

• Online Arbitrage – Sourcing discounted items from online stores and flipping them on Amazon.

• Wholesale – Buying bulk quantities from suppliers and selling individual units.

• Private Label – Manufacturing your own branded products for long-term profitability.

Best for beginners: Retail Arbitrage (RA) and Online Arbitrage (OA) require the least investment and are the easiest entry points into Amazon FBA.

Step 4: Find Profitable Products to Sell

Picking the right products is crucial for success. Avoid making blind purchases by doing proper research. Here’s how to find winning products:

• Sales rank matters – A lower Best Seller Rank (BSR) means a product sells faster.

• Use Keepa – Analyse historical price and sales trends to avoid poor investments.

• Try BuyBotPro & SellerAmp – These tools help you quickly analyse a product’s profit potential.

• Check restrictions – Some brands and products require approval before selling.

Step 5: Source & Buy Inventory

Once you’ve identified a profitable product, you need to source it at a price that allows for good margins. Common sourcing methods include:

• Retail clearance sales (Retail Arbitrage) – Big box stores, outlet malls, and local shops.

• Online marketplaces (Online Arbitrage) – Discount sites, flash sales, and cashback deals.

• Wholesalers & distributors – Establish accounts with suppliers for bulk purchasing.

• Manufacturers (Private Label) – Create custom-branded products through Alibaba or other suppliers.

Step 6: List & Send Your Products to Amazon

Your products won’t sell if they’re not listed on Amazon. Here’s how to get them live:

1. Search for an existing listing and add your products to it.

2. Price your product competitively, using tools like Profit Protector Pro to automate repricing.

3. Label and package your products properly or use an FBA prep service.

4. Ship your inventory to Amazon’s fulfilment centre.

Pro Tip: Winning the "Buy Box" (Amazon’s default seller option) significantly increases your sales. Competitive pricing and good seller metrics help secure it.

Step 7: Automate & Scale Your Business

Once your store is making consistent sales, it’s time to focus on scaling:

• Use repricing software – Helps keep prices competitive without manual adjustments.

• Monitor stock & profits – Track sales trends and inventory levels with management tools.

• Automate bookkeeping – Services like A2X and Xero simplify accounting.

• Hire a Virtual Assistant (VA) – Outsource sourcing, admin tasks, and customer inquiries.

Scaling Tip: Instead of spending your profits, reinvest them into more inventory and higher-margin products.

Common Pitfalls to Avoid

1. Ignoring Keepa charts – Never buy stock without analysing historical sales trends.

2. Selling restricted products – Amazon has strict rules on gated categories.

3. Underestimating fees – Always factor in referral, fulfilment, and storage fees.

4. Failing to automate – Managing everything manually slows down your growth.

5. Not separating business finances – Use a dedicated business bank account for better tracking.

What’s Next? Scaling Beyond Your First Sale

Once you’ve made your first sale, your focus should shift toward growth. Here’s what to do next:

• Reinvest profits into more inventory to scale up.

• Explore Wholesale or Private Label for better long-term margins.

• Stay updated on Amazon’s policies to avoid issues.

• Join an FBA community like FBA Navigators to network and learn from experienced sellers.

Join the FBA Navigators Community – Connect with experienced Amazon sellers, access expert mentorship, and get exclusive resources to scale your FBA business. Join here and start navigating your way to success! 🚀

Final Thoughts

Starting an Amazon FBA business in 2025 is still a great opportunity, but success comes from understanding the process, using the right tools, and avoiding costly mistakes. Follow this guide, stay consistent, and build a business that generates long-term profit.