Tips for starting an Amazon Business in 2020 and grow in no time



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With so many people laid off or having work hours reduced, many people are looking for alternatives to make money. Starting an online business that can be run from home has become one of the first thoughts that many adults, especially Millennials, have looked to for an option today.

Whether they are making and shipping the products themselves or
going by the dropshipping method, Amazon has become a major tool with at-home entrepreneurs. Websites with tools like IO Scout Sales Estimator help aspiring Amazon business owners to begin selling their products and having their business grow in no time.

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Table of Contents

Do your research

Before you can do anything on Amazon, it is important to first understand how selling on Amazon works, and how and where exactly do you begin. It’s important to understand and research the product you want to sell before you start purchasing from the manufacturer and make sure that you can sell the product on Amazon.

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You need to research your audience. Having a real understanding of who your consumer is, and why they need the product you’re trying to sell will help you choose the quality in what you are selling.

Research is important because you also need to know your competition, remember thousands of people have a business on Amazon so you need to know how you will stand out. Most importantly, you have to research and make sure that you know what fees you have to pay, and what are the guidelines or limitations. You don’t want to fail and end up in debt before you start because you weren’t aware of the risks involved.

Getting started

So what do you need to get started selling on Amazon? Is it scary? Is it easier than people make it seem? Am I in over my head? It can be a smooth experience if all steps are taken care of thoroughly. The first thing you have to do is set up your Amazon account.

When you sign up you have to make probably the most important decision for this whole process. That is, do you want to be an individual seller, selling only about 40 items per month without using the advertising platform, but not having to pay an advertising fee, or do you want to be a professional seller, selling unlimited items with the advertising platform but you have to pay monthly referral fees and closing costs?

If you plan on selling products from your own personal company, the individual seller is the route to take but if you want to sell more than 40 items a month, or you want to sell a private product that’s not already listed on Amazon, then applying for the professional seller is best.

Retail Arbitrage vs. Online Arbitrage

There are several different types of Amazon business you can have. A couple of them are retail arbitrage and online arbitrage. Several Amazon businesses said that retail arbitrage is probably one of the easier ways to start your business. It works by going to retail stores such as Big Lots or TJ Maxx and buying a bunch of discounted products.

You would then go and sell those same products on your Amazon store slightly higher. Then once you make a sale you receive the profits. Although it may seem easy, there are some things you have to be sure to keep up with it. For instance, invoices and receipts from the manufacture would be a challenge to come by since you probably will only have the receipt from the store.

You have to have proof of sale from the manufacturer to sell the item on Amazon. Some products are restricted from resale and also your profits may be lower if you purchase from wholesale stores.

Online Arbitrage is similar, here you purchase your products from online stores. The same risks apply. A way to eliminate many of those risks is by purchasing items in bulk from a manufacturer and then selling the items on Amazon.

The thing that many sellers like about wholesale buying is that they can buy the items cheap resulting in higher profits.

Fulfillment by Amazon (FBA)

Another way that people start a business on Amazon is the FBA route. This is a program that any type of Amazon seller can use allowing sellers to send their items to the Amazon warehouse.

This way Amazon can be responsible for filling all of the orders. The seller, of course, would have to pay a fee, and then Amazon will ship the

The advantage of this process is that when customers see that your product is coming from an Amazon warehouse, their trust goes up, making them more likely to purchase from your business again.

Marketing your business through social media

In the year 2020, technology allows us to have information just about anywhere. We can literally carry it with us. With social media at our fingertips, it’s easier now more than ever to get your brand noticeable, even if it’s just a small audience.

As an Amazon business owner, you have to do more than just put your products on the site. In order to compete in sales, you have to create marketing strategies using social media and you can even pay for social media advertisements.

If you want to go the organic route, it’s important to know SEO techniques and how to write copy in your social media. You can use your blog or other people’s blog that’s related to your brand by utilizing and paying
for affiliate marketing.

However you choose to do it, it’s another part of starting an Amazon business that you have to consider.


In today’s society, there are many more opportunities available to become an entrepreneur. In 2020, technology and the internet provide so many new ways to start that business online. Starting an Amazon business is one option where you can find success.

The company gives you multiple ways to choose which direction works for
you. It is up to you to do your research and not go in thinking all you have to do is upload products and sell them.

There are some risks you have to consider when deciding which type of seller you choose to be. Understand that like any other start-up
business, the process comes with some struggles. All in all, selling on Amazon is a learning experience and with time and patience, it can be a lucrative source of extra or full-time income.

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