Many people dream of selling their own products on Amazon and building up a secure, additional income. At the same time, bureaucracy, product searches and fear of making the wrong decisions put them off.
This guide shows in clear steps how Amazon FBA works, what really matters and how you can minimize the risk right from the start. The content is aimed at people who are ready to implement and are not looking for a get-rich-quick-quick idea.
Why Amazon FBA is so exciting right now
Amazon's growth in Germany and your opportunity
Amazon is by far the strongest shopping platform in Germany. Well over 100,000 shoppers are active here every day, with a total of millions. Over 60% of sales do not come from Amazon itself, but from independent retailers.
For you this means:
- As a retailer, you can tap into an existing stream of customers who are ready to buy.
- You don't have to build your own website to attract visitors.
- You can run the business entirely from home.
The principle is reminiscent of a very large digital flea market, except that everything is automated. While you work, sleep or are on vacation, Amazon handles storage, shipping and most of the customer service.
From employee to online retailer
Many sellers start out without an entrepreneurial background. A typical path looks like this:
- Full-time job in a shift or office environment.
- The desire to make more of your life than 30 or 40 years in the same job.
- First researched online business, then discovered Amazon FBA.
A first product can, for example, be a niche item that does not yet exist in an optimized form. A practical example from the field:
- Purchase price per piece approx. 7.50 euros.
- Retail price on Amazon around 35 euros.
- Initial order 700 units, investment around 5,200 euros.
- After just under two months, all units have been sold, generating a turnover of just over 11,000 euros.
Result: In the first month of sales, the net profit is almost the same as the previous monthly salary in the salaried job. It is precisely at this point that many people realize how powerful this model can be.
Over time, goals such as traveling more, living a more relaxed life financially, providing better security for your family or buying your first dream car become realistic.
What you have understood after reading this guide
If you implement the content consistently, you can:
- find a product that is already selling well on Amazon and has proven demand
- Position your own, slightly improved product as a brand
- Target monthly sales of 10,000 to 30,000 euros with one article
- expand the model to several products and achieve five-digit monthly profits in the medium term
Getting there is work, but it can be clearly structured.
The Amazon FBA business model briefly explained
Amazon FBA stands for "Shipping by Amazon". Technically, this means
- You buy goods from a manufacturer or supplier, usually 100 to 500 units.
- The goods are sent to an Amazon warehouse.
- You create your product on Amazon with images, text and price.
- Customers find your product, order and Amazon ships automatically.
- Amazon takes care of warehousing, shipping, returns and basic customer service.
Your main tasks:
- Good product choice
- Sensible calculation
- Brand building
- Strong product presentation (images, video, A+ content, texts)
- Control advertisements on Amazon
- Plan repeat orders
You don't need your own warehouse or employees to get started. A laptop and a few hours a day are all you need to get started.
Requirements: Are you an implementer?
Amazon FBA works, but only for people who are willing to really work.
Important points:
- Concentration and discipline: If you can only focus for a few minutes at a time, it will be difficult.
- Realistic expectationFBA is not a get-rich-quick system.
- After 6 to 12 months, a product can replace your salary.
- It is more realistic to expect 2 to 4 years to build up assets with several products.
- Willingness to learn: You must be willing to learn software, numbers, marketing and some bureaucracy.
- Willingness to change: If you only complain but don't change anything in everyday life, you won't make any progress.
Note: Amazon FBA is not a sports car in 3 months, but rather a solid mid-range car in 1 to 2 years.
Step 1: Register your business and create a basis
No self-employed activity is possible in Germany without a trade.
Simple sole proprietorship as a secondary business
For most newcomers, a sole proprietorship is completely sufficient as a sideline.
The key points:
- Registration with the local trade office.
- Costs usually between 15 and 50 euros.
- Tick "Secondary occupation" on the form if you remain employed.
- As the purpose, enter something like:
Trade in physical products that do not require authorization via online platforms.
Advantages of being part-time self-employed:
- No additional social security contributions just because of the business registration.
- Taxes are only due when you actually make a profit.
- You can take your time to build up without immediately putting all your eggs in one basket.
Business account, tax number and EORI
For a clean start, you should:
- open a separate business account
- apply for a sales tax identification number
- later request an EORI number for import
The EORI number is your customs number. Without it, the freight forwarder cannot clear customs for you when importing your goods from non-EU countries. The application is free of charge.
With these points, you have laid your legal foundation and can start working on the product.
Step 2: Find the right product
Product selection determines success or failure. A clear system helps to avoid bad purchases.
The product pyramid: 3 criteria
You can imagine the selection as a pyramid. Three points must fit:
- Demand
- There are already several sellers in the niche on Amazon.
- At least 5 to 6 providers should each have a monthly turnover of around 10,000 euros.
- You can check this with tools such as Helium 10, which estimate sales per product.
- Opportunity for market share
- There should be many successful products in the niche, not just one dominant provider.
- Your goal is not to come first, but to be among the top 30 to 50.
- The products should be visibly different. If everything looks identical, you are sliding into a pure price war.
- Sufficient profit
- Ideal retail price between 40 and 150 euros.
- Under 30 euros, it is often difficult to have enough profit left over after fees and advertising.
- As a rough rule of thumb, the purchase price is usually around a quarter of the sales price.
If all three levels are fulfilled, the product has a good chance.
Suitable categories for beginners
There are product areas that are better suited to private labels than others. Popular and often useful:
- Pet supplies
- Sport and fitness
- Garden articles
- Baby articles
- Kitchen, household, living
- Camping and outdoor
Less suitable for the start:
- Electronics with lots of technology
- Televisions, computers, cell phones
- Fashion and shoes with strong brands and many returns
Always ask yourself the question: Would someone buy this product from an unknown brand if the presentation and reviews are right?
Product search with software
Professional sellers use analysis tools that evaluate data on Amazon.
Typical procedure:
- You enter categories and filters in the product search, for example:
- Minimum search volume per month
- Minimum turnover in the niche
- Retail price range 40 to 100 euros
- The tool spits out product ideas for you, for example:
- Wok pans with many suppliers, each with a turnover of 10,000 to 40,000 euros
- Pull-up bars with numerous sellers and high sales
- Heated ceilings with sales in the millions across the entire niche
- For exciting terms, take a look directly at Amazon:
- What do the products look like?
- How many ratings do they have?
- Where do customers complain in the reviews?
This will help you find niches in which you can start to improve.
How to set yourself apart from the competition
The key is almost always a small but noticeable improvement.
Examples:
- Curtain poles
Many products are only available in one color and fixed lengths. Successful sellers offer adjustable versions in several colors. This allows every customer to find the right combination. - Log splitter or splitting axe
Many products are technically similar. However, those with higher quality photos, clearly recognizable benefits and a strong brand are much more attractive and achieve high sales. - Grill plate
The reviews of many grill plates state that grease cannot run off and the handles get hot. An improved version with a drain hole and wooden handles looks better and solves real customer problems.
The procedure is always the same:
- Read reviews of the competition.
- Note down typical points of criticism.
- Discuss these points with the manufacturer and adjust the product slightly.
Step 3: Establish your own brand (private label)
Instead of just selling any product without a name, you can create your own brand.
Why having your own brand is so important
With a brand:
- you set your own prices
- you are less interchangeable
- you make it difficult for others to copy you 1 to 1
- you can later expand your range, for example from one firewood basket to several variants
Private label means: A manufacturer produces a product, but your logo and brand name are on the product and packaging.
Brand examples for classification
You see brands like this on Amazon all the time, even if nobody knew them before:
- Backpack brands with fictitious names
- Espresso makers from small brands that are not on the market
- Pans, blankets, sporting goods with fantasy names
It's similar in the supermarket. Many branded products with different names actually come from the same major manufacturers and are just labeled differently.
You can officially register a trademark in Germany. A logo can be created inexpensively by graphic designers.
Step 4: Find suppliers and purchase goods
The next step is to find a suitable manufacturer.
Alibaba as a manufacturer platform
Many manufacturers worldwide are listed on Alibaba. You can see the platform like a dating site, but for producers.
Procedure:
- Create accountability on Alibaba.
- Enter the product term, such as "heating blanket" for heating blankets.
- View suitable offers and select the products that best meet your requirements.
Then write to several manufacturers at the same time. A standardized message is suitable for this, for example:
- short introduction
- Product name
- List of your requirements (size, material, functions)
- Planned first order quantity, usually 300 to 500 units
- Request for prices for larger quantities, for subsequent repeat orders
- Question as to whether customers in Germany are already being supplied
- Question whether the manufacturer is represented at trade fairs
This shows that you are serious and are planning a long-term collaboration.
Order samples and check quality
Before you place a large order, you should always order sample products.
What you should look out for:
- Processing and seams
- Odor
- Material thickness
- Function and stability
- Details such as zippers, buttons, handles
If in doubt, order samples from two or three manufacturers and compare them. This will significantly reduce the risk.
Calculate profit in advance
Before you invest a single cent in a bulk order, calculate whether the product is worth it.
Typical items:
- Purchase price from the manufacturer, for example 20 to 25 % of the planned sales price
- Transportation costs to Europe
- Customs clearance, usually 2 to 5 % of the value of the goods
- Storage and shipping fees from Amazon
- Amazon sales fee, often 15%
- Advertising costs for advertisements, for example 10 to 15 % of turnover
You can write down two scenarios:
- Risk scenario: You have to sell at a slightly lower price than planned.
- Opportunity scenario: You achieve your target price.
If, in both cases, there is still a clear profit after all costs, the product is interesting. Depending on the niche, a profit of 2,000 to 5,000 euros per month is realistic with a single article.
Import and logistics
Most goods from China come to Europe by sea freight. Typical key data:
| Type of transportation | Duration | Cost ratio |
|---|
| Sea freight | 4 to 6 weeks | favorable |
| Train freight | about 2.5 weeks | more expensive than sea |
| Air freight | few days | Significantly more expensive |
In practice:
- You commission a forwarding agent to take care of transportation and customs clearance.
- It is important that you give him your EORI number.
- The goods are first sent to a warehouse or directly to an Amazon warehouse.
You don't have to carry any boxes yourself, but organize everything from your computer.
Step 5: Product page and images that sell
Once the goods are on their way, you prepare your listing. This is where you decide whether customers choose your product.
Five key points for a strong listing
- Images are more important than text
Most buyers hardly ever read description texts. They click through the picture gallery and then make their decision.
Show in your pictures:- how the product is used
- what advantages it has
- Special features and improvements compared to standard products
- Don't overload the customer
Everything is fast online. Buyers browse like they're speed dating.
Focus on the 3 to 5 most important advantages of your product and present them clearly. - Striking main image (eye-catcher)
On the search results page, the customer sees many very similar images.
Your goal: The eye should fall on your product first.
Examples:- Visible benefits like fresh lettuce in a salad spinner
- Special detail such as a wooden handle or a special color
- Image composition that stands out from the crowd
- Show benefits, not just describe them
Instead of just writing "waterproof", show a picture of water running off the product.
Before and after pictures work very well:- Cable clutter before use, tidy storage afterwards
- Wet lettuce leaf before spin-drying, dry afterwards
- untidy firewood before, clean firewood basket afterwards
- Trust through seals and awards
Test seals or test results significantly increase trust, especially for safety-relevant products such as electric blankets or bicycle helmets.
If your product has real certificates, place them visibly in the images.
Professional photos and videos pay off massively here. They increase the click rate and the purchase rate, which is directly reflected in higher sales.
Step 6: Start selling with advertising and reviews
Even the best product will hardly be found at the beginning if you do nothing for it.
Build visibility with advertisements
Amazon offers ads where you pay per click. This is often referred to as PPC.
You can place ads:
- on the search results pages, at the top or between the organic hits
- on the product pages of other articles, usually below the description
Procedure:
- You select search terms for which your product should appear.
- You set a maximum price per click, for example 0.30 or 0.80 euros.
- Amazon displays your product as soon as buyers search for these terms.
The advantage: You can achieve sales from day 1, even though your organic ranking is still weak.
The more sales you achieve via certain search terms, the better Amazon will rank your product and the higher up you will appear later, even without advertising.
Organic sales do not cost you a click fee, so they directly increase your margin.
Build ratings faster
Reviews are a strong trust factor. Many buyers sort products according to the number of stars.
The problem:
Almost nobody writes a review without any impetus. It is usual to write about one review for every 100 orders.
One effective method is to send handwritten postcards that arrive at the customer a few days after delivery. The content of the postcard could be, for example:
- Personal thanks for the purchase
- A brief note that this is a young company
- Please leave an honest review if you like the product
- Link or QR code to the rating page
Experience has shown that such cards lead to significantly more feedback than simple slips of paper in the product packaging or automated emails.
With 20 to 30 reviews, you are on a par with existing products in many niches.
The new level: selling on multiple marketplaces (APEX)
One exciting trend is the simultaneous sale on several platforms.
In addition to Amazon, platforms such as Otto, Kaufland and specialized stores are significantly expanding their marketplaces. Their share of total online retail in Germany is growing from around 17% to around 22%.
Important points:
- The basic model remains the same, regardless of whether it's Amazon, Otto or Kaufland.
- You use the same product data, images and stock levels.
- There are software solutions that mirror your Amazon range on other marketplaces and merge orders.
Advantages:
- additional sales with the same products
- less competition than on Amazon, as many retailers are only active there
- Less dependence on a single marketplace
So if you have a functioning product on Amazon, you can sell on several platforms with little additional effort.
Realistically estimate the start-up capital and time required
How much money do you need?
Most successful sellers invest between 10,000 and 25,000 euros in their business in the first 12 months. This includes:
- Sample orders
- First main order
- Import costs
- professional product images
- Advertising budget
You don't have to spend it all at once. Nevertheless, it makes sense to plan a framework.
Important thought: Many people invest several thousand euros in a cell phone, car or vacation without hesitation, but are reluctant to invest the same amount in their own company that will generate money in the long term.
Every product as a small asset
You can see every successful product as a small asset:
- A product that makes a profit of 3,000 euros a month generates 36,000 euros a year.
- With two to three such products, you can quickly reach the income level of a well-paid employee.
You only invest the work of setting up a product once. After that, the effort mainly consists of repeat orders, monitoring advertising and occasional optimization.
How much time do you need per day?
For the start:
- About 1 to 3 hours a day, often after work or at the weekend.
- A little more mental work in the product search and manufacturer communication phase, more waiting time in the import phase.
In the long term, it is quite possible to run a stable FBA business alongside a full-time job or to reduce your job later on.
Conclusion: Why it's worth getting started now
Amazon FBA combines an enormous customer reach with a comparatively easy start and clear structures. If you are prepared to familiarize yourself with product selection, calculation, brand development and marketing, you can build up a stable, scalable income within one to two years.
The path is not a walk in the park, but it can be planned:
- Create trade and basic structure.
- Select a product with real demand and sufficient margin.
- Find manufacturers, check samples, crunch the numbers.
- Build brand and listing, produce strong images.
- Start with advertising, collect ratings, improve ranking.
- Expand sales with additional products and marketplaces.
If you take these steps consistently and get support when you have questions, you have a very good chance of building a profitable e-commerce company that is not tied to a permanent job or a boss.