How to Start Amazon FBA in 2026: A Step-by-Step Guide for Beginners

Everyone says Amazon FBA is "saturated."

They're wrong—but they're also not completely crazy.

Here's the truth: 25% of Amazon sellers earn over $100,000 per year. Third-party sellers generated $42.5 billion in Q3 2025 alone—a 12% jump from last year.

And 62% of everything sold on Amazon now comes from independent sellers like you. Not Amazon. You.

But the days of throwing a random product on Amazon and watching money roll in? Gone.

In 2026, you need a system. Research. Data. And a plan.

This guide gives you that plan—step by step. We'll cover exactly how 58% of new sellers become profitable within their first year—and how to make sure you're in that group.

If you're still fuzzy on what FBA actually is, start with our What is Amazon FBA? explainer first. Then come back here when you're ready to take action.

Is Amazon FBA Still Worth It in 2026?

Let's address the elephant in the room.

Amazon is a $2 trillion company. Over half of all U.S. e-commerce sales happen on Amazon. And despite what the skeptics say, the platform is still growing.

Here's what the data actually shows:

The opportunity isn't dead. It's just different—and more competitive.

In 2020, you could find a random product on Alibaba, slap a logo on it, and profit. In 2026, you need:

• Data-driven product selection (not gut feelings)
• Quality differentiation (not just rebranding)
• Launch capital ($3,000-$5,000 for Private Label)
• Patience (3-6 months to profitability)

If you're looking for a get-rich-quick scheme, FBA isn't it. But if you're willing to treat this like a real business? The upside is massive.

Here's how seller income breaks down:

The top 13% earn over $250K per year. And the number of million-dollar sellers grew 37.5% in just three years—from 40,000 to 55,000+.

The 3 Amazon FBA Business Models

Before you research products, you need to pick a model. Each has different capital requirements, risk levels, and profit margins.

1. Private Label (Build a Brand)

You create your own branded products by sourcing from manufacturers.

How it works:

1. Find a product with demand but weak competitors
2. Source it from a manufacturer (usually Alibaba)
3. Improve it (better design, materials, or features)
4. Add your logo and branding
5. Sell it as your own product on Amazon

Startup cost: $2,500 - $5,000 (can stretch to $10K for premium launches)

Profit margins: 25-40%

Time to first sale: 2-4 months

Best for: Long-term brand builders

This is the model 82% of successful Amazon sellers use. You own the listing. You control the price. And if you build something valuable, you can sell the business for 2-4x annual profit.

2. Wholesale

You buy products from established brands in bulk and resell them on Amazon.

How it works:

1. Open wholesale accounts with brands or distributors
2. Buy products at 40-50% off retail
3. Send inventory to FBA
4. Sell on existing Amazon listings

Startup cost: $1,000 - $3,000

Profit margins: 10-20%

Time to first sale: 2-4 weeks

Best for: Faster cash flow, less creative work

The downside? You're competing with other sellers on the same listing. Margins are thinner. And you don't own the brand.

3. Retail Arbitrage

You buy discounted products from retail stores and resell them on Amazon.

How it works:

1. Scan clearance items at Walmart, Target, Ross, etc.
2. Check if they sell for more on Amazon
3. Buy the ones with good margins
4. Ship to FBA and profit

Startup cost: $500 - $1,000

Profit margins: 15-30%

Time to first sale: 1-2 weeks

Best for: Learning the platform, minimal risk

This is the "treasure hunter" model. Great for learning, but hard to scale. You're trading time for money—and one IP complaint can suspend your account.

Which Model Should You Choose?

Step 1: Find Your First Product

This is where 90% of new sellers fail.

They pick products based on what they like—not what the market wants. They ignore competition. They skip the math.

Don't be that person.

The Validation Mindset

A good product isn't one you think is "cool." It's one that:

1. Has proven demand — People are already searching for it
2. Has weak competition — Top sellers have <500 reviews
3. Has healthy margins — You can profit after ALL fees
4. Is easy to ship — Small, light, not fragile

Key Metrics to Analyze

When evaluating a product, look at these numbers:

Using Launch Fast for Product Research

Instead of guessing, use data.

The Launch Fast Product Scorecard grades products on a 100-point scale across four pillars:

• Demand — Is there enough search volume?
• Competition — Can you realistically rank?
• Differentiation — Is there room to improve?
• Profitability — Will you actually make money?

Products scoring B+ or higher are worth investigating. Anything below a C? Move on.

Step 2: Source Products & Find Suppliers

You've found a product with potential. Now you need someone to make it.

Finding Suppliers on Alibaba

Alibaba is the go-to platform for Private Label sourcing. Here's how to use it:

1. Search your product — Look for suppliers with "Trade Assurance" and "Verified Supplier" badges
2. Contact 5-10 suppliers — Don't go with the first one
3. Request quotes — Ask for MOQ (minimum order quantity), unit price, and sample cost
4. Order samples — Never bulk order without testing samples first
5. Negotiate — Prices are almost always negotiable after your first order

Red Flags to Watch For

• No Trade Assurance — You have no protection if things go wrong
• Too-good-to-be-true prices — Usually means quality issues
• Poor communication — If they're slow now, imagine during a crisis
• No product photos — They might be a middleman, not a factory

Vetting Your Supplier

Before you send thousands of dollars overseas, verify:

• Factory audits — Ask for inspection reports
• Client references — Request contacts from their other buyers
• Sample quality — Order from 3+ suppliers and compare
• Communication speed — Test their response time before committing

Use the Launch Fast Supplier CRM to track conversations, sample scores, and supplier notes in one place—no more messy spreadsheets.

Step 3: Set Up Your Amazon Seller Account

Time to make it official.

Individual vs. Professional Account

If you're following this guide, go Professional. It unlocks advertising, bulk listing tools, and Buy Box eligibility.

How to Create Your Account

1. Go to sellercentral.amazon.com
2. Click "Sign Up"
3. Choose "Professional" plan
4. Enter your business information:

• Legal name and address
• Phone number (for verification)
• Credit card (for fees)
• Bank account (for payouts)
• Tax identity (SSN or EIN)

Documents You'll Need

• Government-issued ID (driver's license or passport)
• Bank statement or credit card statement
• Proof of address (utility bill works)

Amazon will verify your identity with a video call. It takes 2-5 business days to get approved.

Step 4: Create Your First Product Listing

Your listing is your storefront. A bad listing = no sales.

The Anatomy of a High-Converting Listing

1. Title — Include your main keyword. Be specific. (80-200 characters)
2. Images — 7+ images: main photo, lifestyle shots, infographics, size charts
3. Bullet Points — 5 benefit-focused bullets with keywords woven in
4. Description / A+ Content — Tell your brand story, address objections
5. Backend Keywords — Hidden keywords Amazon uses for search matching

Keyword Research

Don't guess what customers search. Use data.

The Launch Fast Keyword Research Tool shows you:

• Exact search volume for any keyword
• Related keywords you're missing
• Competitor keywords you can steal
• Keyword gaps where competition is weak

Target 5-10 high-volume keywords in your title and bullets. Add long-tail variations in your backend.

Product Photography

You have 0.5 seconds to grab attention. Your main image needs to be perfect.

• White background (Amazon requirement)
• Fill 85%+ of the frame
• High resolution (2000 x 2000 pixels minimum)
• Show scale — Include a hand or object for size reference

Hire a professional photographer. It costs $200-$500 and pays for itself immediately.

Step 5: Launch & Get Your First Sales

Your product is live. Now what?

The Honeymoon Period

Amazon gives new listings a temporary boost in search rankings. This is your window to generate sales velocity and reviews.

You have roughly 2-4 weeks to prove your product deserves to rank. If you waste this period, you'll be fighting an uphill battle.

Launch Strategy

1. Run PPC Ads from Day 1 — Start with auto campaigns to discover keywords, then add manual campaigns for top performers
2. Offer a Launch Discount — 15-20% off creates urgency
3. Drive External Traffic — Social media, email lists, influencer posts
4. Follow Up for Reviews — Use Amazon's "Request a Review" button (it's free and compliant)

Budget for Launch

Don't launch without a marketing budget. Organic sales come after you prove demand with paid traffic.

Tracking Your Rank

How do you know if it's working?

Use the Launch Fast Rank Tracker to monitor your product's organic position for your target keywords—daily. If you're moving up, keep spending. If you're stuck, adjust your keywords or listing.

Common Mistakes to Avoid

The 42% of sellers who fail in their first year almost always make the same mistakes. The typical cost of these errors? $3,000 to $30,000 in losses.

Here are the top killers:

1. Skipping Product Research

"My friend said this would sell" is not research. Sellers who skip keyword research and demand validation before manufacturing lose thousands before realizing no one wants their product. Proper validation happens before you order inventory—not after it arrives at Amazon.

2. Ignoring Fees (Especially the New Ones)

Amazon takes 30-40% of your sale price between referral fees, FBA fees, and storage. And in 2025/2026, new inbound placement fees add $0.23-$1.58 per unit if you don't use Amazon's partnered carriers.

Here's the 2025/2026 fee reality:

Always use a profitability calculator before ordering inventory.

3. Ordering Too Much Inventory

Start with 200-500 units. Test the market. Then scale. Don't order 2,000 units and pray.

4. Choosing Cheap Suppliers

That $0.50 savings per unit? It'll cost you $5,000 in returns and bad reviews. Quality wins.

5. Launching Without a Budget

No PPC = no visibility = no sales = dead product. Budget $500+ for launch marketing.

6. Giving Up Too Early

Most products take 3-6 months to become profitable. Month one is about learning, not earning.

FAQ: Starting Amazon FBA

How much does it cost to start Amazon FBA?

For Private Label, budget $2,500-$5,000 minimum (up to $10,000 for a premium launch):

Most experienced sellers recommend having at least $5,000 for a smoother launch with room for unexpected costs.

Can I start Amazon FBA with no money?

Technically, you can start Retail Arbitrage with a few hundred dollars. But for Private Label (the path to real income), you need capital. Consider saving for 3-6 months, or start with a smaller category where inventory costs less.

How long does it take to make money on FBA?

58% of Amazon sellers become profitable within their first 12 months. The faster ones—those who focus on product validation, customer ratings, and winning the Buy Box—often hit profitability in 3-4 months.

Typical timeline:

• Month 1-2: Learning, launching, burning cash on PPC
• Month 3-4: Optimizing listings, finding profitable keywords
• Month 5-6: Breaking even or early profit
• Month 7+: Scaling and reinvesting

Is Amazon FBA passive income?

Not at first. The first 6 months require active work: product research, supplier negotiations, listing optimization, PPC management. After you have systems in place, it can become mostly passive—but never fully hands-off.

Do I need an LLC to sell on Amazon?

No, you can start as a sole proprietor. But once you're making consistent sales ($1,000+/month), form an LLC for liability protection. It costs $50-$500 depending on your state.

Start Building Your Amazon Business

You now have the roadmap.

The difference between people who talk about starting an Amazon business and those who build one? Execution.

Here's your action plan:

1. Pick your business model — Private Label for long-term, Arbitrage to learn
2. Find a validated product — Use data, not gut feelings
3. Source quality suppliers — Samples first, bulk second
4. Set up your account — Go Professional from day one
5. Create a killer listing — Keywords, images, and copy that convert
6. Launch with a budget — PPC + promotion from the start
7. Track and optimize — Rank tracking, keyword gaps, margin analysis

Ready to skip the guesswork?

Sign up for Launch Fast and get access to the complete toolkit—Product Scorecard, Supplier CRM, Keyword Research, and Rank Tracking—all in one dashboard.

Your first $100K year starts with your first product. Let's find it.