How to Become an Amazon FBA Seller

TL;DR 

• Amazon Australia is growing fast, attracting millions of buyers, making it a great place to sell.

• FBA (Fulfillment by Amazon) takes care of storage, packing, shipping, and customer service, saving you time.

• There are two plans to choose from: Individual (for small sales) and Professional (for more sales and extra tools).

• Understand FBA fees like storage and shipping costs to price your products right.

• Create strong product listings with clear titles, bullet points, good images, and keywords.

• Avoid mistakes like poor inventory management and missed customer feedback, and get expert help to grow your business.

Selling on Amazon FBA in Australia is a great way to grow your business. Amazon is growing fast and reaching millions of customers every month. Whether you’re new to selling or want to expand, FBA makes it easy by handling storage, packing, and shipping.

In this guide, we’ll show you how to become an Amazon FBA seller in Australia, from setting up your account to choosing products, managing inventory, and creating strong listings. Let’s get started!

Why sell on Amazon Australia using FBA?

Amazon Australia has grown rapidly since it started in 2017, attracting over 26 million buyers every month. More Australians are shopping online, and with over 65% of people buying products online, it's clear that eCommerce is booming. 

Prime memberships also grew by 30% last year, showing how much people value fast, free shipping.

The convenience of quick delivery has made Amazon the top choice for many shoppers in Australia. With more people relying on online shopping, now is the perfect time for you to join this growing marketplace.

Additionally, Amazon has expanded its fulfillment network, with warehouses in Melbourne, Sydney, Brisbane, Perth, Canberra, and Adelaide. The company continues to invest in expanding these facilities, ensuring fast and efficient delivery to customers across Australia.

Who can become an Amazon FBA seller in Australia?

If you have a registered business (ABN), a bank account, and ID verification, you can start selling on Amazon Australia. This includes:

• People starting a new brand

• Retailers expanding online

• Anyone wanting to try e-commerce

Benefits of FBA

• It saves time & effort – You don’t have to manage packaging, shipping, and returns.

• Fast delivery & prime eligibility – Your products are eligible for Amazon Prime’s fast shipping, attracting more customers to purchase your product as compared to others.

• Scale your business – Easily expand your product categories without worrying about logistics.

• Increase your conversion rates –Customers trust Amazon more in the fulfillment of Amazon products than third-party seller shipments.

How does the FBA work?

• List your products: Choose a category, write a clear title, and upload high-quality images.

• Sign up for FBA: Select Fulfillment by Amazon when listing your product.

• Prepare your inventory: Label and pack products according to Amazon’s rules.

• Send inventory to Amazon: Ship your stock to an Amazon warehouse.

• Amazon stores and ships: Amazon stores and delivers your products.

• Amazon handles customer service: They manage returns, refunds, and questions.

• Get paid: Amazon deposits your earnings after deducting fees.

Difference between FBA (Fulfillment by Amazon) and FBM

Choosing how to fulfill your orders is important for managing your Amazon business. Below is a simple comparison of Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) to help you decide.

Which One Should You Choose?

• FBA is best if you want fast shipping, Prime benefits, and less work on logistics.

• FBM is better if you want lower costs, more control, and don’t mind handling shipping.

Here, you can choose our expert Amazon professionals who can handle your account, advertising optimization, clean up, and review management. 

FBA costs and fees in Australia

Using FBA comes with different fees, so it's important to know what to expect when pricing your products.

Fulfillment fees

Amazon charges per unit, based on size and weight. Example fees:

• Small items (under 500g): Around $3–$7 per unit.

• Large items (over 10kg): Can be over $20 per unit.

Storage fees

• Monthly fee: Charged per cubic meter and varies by season.

• Long-term fee: Extra charges apply for inventory stored for more than a year.

 Referral fees

• Amazon takes a percentage of each sale, usually between 6% and 15%, depending on the category.

Other possible costs

• Removal fees: If you request Amazon to return unsold stock.

• Disposal fees: If you want Amazon to get rid of extra inventory.

• Stock overage fees: If you store more than your allowed limit.

By understanding these costs, you can price your products better and maximize profits when selling on Amazon Australia.

How to become an Amazon FBA Seller

#1  Sign up for your Amazon Seller Central Australia

• Visit Amazon Seller Central and click 'sign up'.

• Enter your business details, including your Australian business number (ABN), email, and contact information.

• Verify your identity by providing a passport or driver’s license and completing Amazon’s verification process.

• Link your bank account to receive payments and enter your tax information.

• Set up your seller profile, including your store name and policies.

• Start listing products by adding images, descriptions, and pricing information.

#2 Choose the right selling plan 

• Individual Plan: Great for beginners or those selling only a few items. No monthly fee, but you pay $0.99 per sale. Ideal for testing products or selling occasionally.

• Professional Plan: Costs $49.95 per month but removes the per-sale fee. You get extra tools like bulk listing, reports, and Amazon advertising. Best for businesses planning to sell a lot.

Tip: If you're just starting, the Individual plan lets you test the market with little cost. If you plan to sell regularly, upgrading to the Professional plan will save you money and offer more tools to grow.

#3 Find the right products to sell on Amazon AU

Market research and demand analysis

• Using tools like Helium 10 and Jungle Scout can help you find profitable products. 

• Best-selling categories: Look at what products are popular and selling well.

• Competitor pricing: See what similar products cost and price yours competitively.

• Profit margins: Aim for at least a 30-40% profit margin after Amazon fees.

• Seasonal trends: Some products sell better during certain times of the year.

• Customer demand: Read customer reviews to find out what people like and dislike about similar products.

Amazon’s restricted categories in Australia

Some products require approval before selling on Amazon, while others are not allowed at all. Common restricted categories include:

• Supplements: Must meet health and safety rules and may need approval.

• Medical devices: Items like thermometers or blood pressure monitors need approval.

• Hazardous materials: Products with lithium batteries or flammable substances need special handling.

• Branded products: Some brands only allow approved sellers to list their items.

Understand product size, weight, and how it affects FBA fees

• Choose small, lightweight products to save on shipping fees.

• Use Amazon’s FBA calculator to check costs before choosing a product.

• Follow Amazon’s packaging rules to avoid extra fees.

• Avoid large or bulky packaging to reduce shipping costs.

Picking the right products will help you make more profit while keeping costs low on Amazon Australia.

#4 List your products for FBA

Create a high-converting product listing

• Title: Keep it clear and concise, incorporating key details like the product name, size, and major benefits. Ensure it's easy to read.

• Images: Use high-quality, clear photos from different angles. Including lifestyle images showing the product in use helps customers visualize its value.

• Bullet points: Highlight essential features and benefits. Focus on how your product solves problems or improves the customer’s life.

• Description: Write a short, engaging paragraph that explains the product's benefits, ensuring it’s easily understood.

• Amazon A+ Content (for Pro Sellers): Use this feature to add extra images, comparison charts, or detailed descriptions to make your listing more appealing.

These elements work together to ensure your product stands out, attracts clicks, and increases your chances of conversion.

#5 Send inventory to Amazon FBA warehouses

Prepare and label products for FBA

• Follow Amazon’s packaging and labeling rules to ensure smooth processing.

• Use Amazon’s barcode system (FNSKU) to track inventory correctly.

Shipping inventory to Amazon fulfillment centers in Australia

• Use Amazon’s partnered carriers for lower shipping costs.

• Make sure all products have scannable barcodes to avoid delays.

Understand Amazon’s storage fees

• Monthly storage fees are based on cubic meter usage.

• Long-term storage fees apply to items stored for over 365 days.

#6  Manage your Amazon FBA business

Track orders and inventory levels

• Use Amazon’s inventory dashboard to track stock levels and avoid overselling.

• Set reorder alerts to ensure you restock products before running out. Low inventory can lead to lost sales and lower rankings.

• Monitor fulfillment times and delivery performance to maintain a positive customer experience.

Handling customer service (For FBA sellers)

• Amazon manages customer inquiries, returns, and refunds for FBA sellers, reducing workload.

• Sellers must stay updated on Amazon’s policies and maintain good Account Health by ensuring timely responses to any seller performance issues.

Run  Amazon PPC optimization to boost sales

• Sponsored products: Appear in search results and help promote individual listings.

• Sponsored brands: Promote your brand and direct customers to your storefront.

• Sponsored display: Retarget shoppers who have viewed your products, increasing conversions.

#7 Scale your Amazon FBA business in Australia

Expand  your Amazon business

• Use Amazon Brand Analytics to find complementary products that match your current offerings.

• Research trending and high-demand products to grow your brand.

Selling Internationally with Amazon Global Selling

• Expand to Amazon USA, UK, and Europe to reach more customers.

• Use FBA international fulfillment to simplify shipping and logistics.

Automate processes for efficiency

• Use inventory management tools like Sellbrite or InventoryLab to track stock and automate reordering.

• Set up automated feedback requests using FeedbackWhiz to increase reviews and improve rankings.

Common mistakes to avoid as an FBA Seller

• Not researching the right products

• Ignoring Amazon’s FBA guidelines

• Poor inventory management

• Neglecting product listing optimization

• Setting uncompetitive pricing

• Not monitoring PPC ad performance

• Ignoring customer feedback and reviews

• Failing to track Amazon fees

• Depending only on Amazon for traffic

• Not staying updated on Amazon policy changes

Final thoughts

Selling on Amazon FBA in Australia is a great way to grow your business. By choosing the right products, optimizing listings, managing inventory, and using Amazon ads, you can increase sales. But success also means staying updated on rules, tracking fees, and avoiding common mistakes.

If you need help, our experienced Amazon consultants can guide you with product selection, FBA setup, advertising, and business growth. Get expert support and start building a successful Amazon store today.