Starting an Amazon FBA (Fulfillment by Amazon) business can be a great way to earn extra income or turn it into a full-time business. And luckily, starting one isn’t difficult.

With FBA, you get access to Amazon’s worldwide customer base and insanely efficient fulfillment system, which lets you focus on finding and sourcing profitable products. FBA businesses start by shipping products directly to Amazon fulfillment centers. This happens regularly throughout the year as the business owner sources products to sell.

Then, the products are listed on Amazon for sale with the “Fulfilled by Amazon” badge. When someone buys the product, Amazon picks, packages, and ships your products directly to the consumer. FBA business owners don’t have to worry about the logistics of product fulfillment.

While Amazon takes a fee for everything you sell, sourcing the right products and selling them on Amazon has the potential to generate substantial income for creative business owners.

Here is how to create your own Amazon FBA business.

How To Start an Amazon FBA Business in 6 Steps

Step 1: Choose a Product To Sell

The first step in starting an Amazon FBA business is to choose a product to sell. Arguably, this is the most important step because it directly impacts your profit after the sale.

Ideally, you want to find a product in high demand but with low competition and a healthy profit margin. Many tools are available to help you research products, such as Jungle Scout, Helium 10, or Viral Launch. These tools allow you to see the demand for a product, the competition, and the average price.

When choosing a product, don’t forget to consider the product’s weight and size, as these will affect your shipping costs and storage fees. Additionally, you’ll want to ensure the product is easy to source and has a reliable supplier to sell more of those products in the future. This may involve doing some research and reaching out to manufacturers or wholesalers.

Step 2: Set up an Amazon Seller Account

Once you’ve chosen a product to sell, you must set up an Amazon Seller Account. There are two types of accounts: Individual and Professional. The Individual account charges no monthly fee but includes a per-item cost for each sale. The Professional account has a monthly fee but offers many additional features, such as bulk listing and reporting tools. According to Jungle Scout, Professional accounts are generally worth it if you sell more than 40 items a month.

To create an Amazon Seller Account, you must provide personal information, such as your name, email address, and phone number. You’ll also need to provide business details, such as its name, address, and tax identification number (or EIN).

Step 3: Create a Product Listing

Once you’ve set up your Amazon Seller Account, the next step is to create a product listing for your item. A product listing includes the product title, description, images, and pricing. You’ll also need to select the category and subcategory for your product.

There are strategies that wealthy FBA owners use when creating product listings.

When creating your product listing, make sure to include detailed and accurate information about your product. If the size of your product matters to customers, make sure to include product dimensions. A diagram with clearly labeled dimensions is a great way to do this.

This extra step will help customers find your product and understand what they buy. Additionally, remember to include high-quality images showing your product from multiple angles.

Step 4: Ship Your Products to Amazon

Once your product listing is live, ship your products to an Amazon Fulfillment Center. Amazon will store your products, and when an order is placed, it will handle your shipping and customer service.

Create a shipping plan in your Seller Central account to ship your products to Amazon. This plan will include information about the products you are shipping, the quantity, and the shipping address. Once you’ve created your shipping plan, you will print out shipping labels and send your products to the Amazon Fulfillment Center.

Step 5: Manage Your Inventory

As your products sell, it quickly becomes important to manage your inventory to ensure that you have enough products in stock. Amazon provides tools to help you monitor your inventory levels and set up automatic reorder notifications.

Additionally, remember to pay attention to your inventory storage fees. Amazon charges a fee for storing your products in their fulfillment centers, which increases if your products remain in a fulfillment center for longer periods. To avoid excess storage fees, make sure to manage your inventory levels carefully and only order what you expect to sell in a reasonable amount of time.

Step 6: Monitor Your Sales and Reviews

Finally (and this is the fun part), monitor your sales and customer reviews to see how your products perform. You can use Amazon’s reporting tools to track your sales and reviews and address any negative comments immediately. Many customers make buying decisions based on reviews, so keeping your product reviews high will help you make more sales.

This post originally appeared on Wealth of Geeks.