How to Start an Amazon FBA Business with No Money
Starting a business can be tough, especially when you’re financially strapped. But the good news is that selling on Amazon has opportunities for everyone, even those starting with zero funds. If you’re ready to put in the extra work and think creatively, you can launch a profitable Amazon FBA business without upfront costs. In this guide, I’ll walk you through four creative strategies to get started on Amazon with minimal financial investment.
Step 1: Sign Up for an Amazon Seller Account
To start selling, you’ll need an Amazon Seller Account. Amazon offers two account plans:
1. Individual Plan – No monthly fees, but you pay $0.99 per sale.
2. Professional Plan – $39.99 per month but without per-item fees.
If you’re just starting, go with the Individual Plan to avoid the monthly cost. You can upgrade to the Professional Plan anytime once you’re making steady sales.
4 Strategies to Start Selling on Amazon with No Money
The key to starting without money is to get your hands on free or low-cost inventory. Here are four proven strategies to make that happen.
- Sell Used Books
One of the best resources for free inventory is used books. Used books can be listed on Amazon without restrictions, making them a great entry point.
Steps:
• Join Facebook Groups and Browse Marketplace: Look for book clubs or listings from people looking to get rid of books. Avoid textbooks, as they have more restrictions. Focus on non-fiction books, as they tend to have better resale value.
• Scan for Profit: Use the free Amazon Seller app to scan book barcodes and check how much they sell for on Amazon.
For example, if you find a free Tom Clancy book and it’s selling for $29 on Amazon, the profit margin could look like this:
Selling Price Cost Amazon Fees Profit $29 $0 $9 $20
Once you’ve acquired your books:
• Ship to Amazon for FBA: By sending your books to Amazon for Fulfillment by Amazon (FBA), they’ll handle storage, packing, shipping, and customer service. While there’s a small cost to ship your books, you can reduce it by sending multiple books at once.
Advantages of Selling Used Books
• Lower Competition: Books, especially non-fiction, have lower competition compared to other products.
• High-Profit Margin: Since you’re acquiring inventory for free, your profit margins are significantly higher.
- Create and Sell On-Demand Products with Amazon Merch
Amazon offers a Merch on Demand service where you can sell custom-designed items like T-shirts, hoodies, and mugs without holding inventory.
Steps:
• Create Designs: You don’t need to be a designer! Search for popular designs on Pinterest or Etsy for inspiration. Look for trends in specific niches (e.g., golf, cats, movies).
• Hire a Designer: Use platforms like Upwork or Fiverr to create designs based on ideas you find. Many designers charge as little as $2-$5 per design.
• DIY with Canva: If you want to save even more, use Canva to create designs for free. Canva offers easy-to-use templates and images to create T-shirt designs.
Once your designs are ready, upload them to Merch on Demand and set your prices. Since Amazon handles everything from production to delivery, all you need to focus on is keyword optimization and letting Amazon handle the rest. This is a zero-investment strategy that allows you to earn royalties from every sale.
Steps Tools Needed Cost Research Ideas Pinterest, Etsy Free Create Designs Canva or hire designer Free or $2-$5 List Product Amazon Merch on Demand Free
- Crowdfunding Through Platforms Like Indiegogo
If you have a product idea that requires upfront manufacturing, like creating molds for a custom item, consider crowdfunding. One of my students used this method to fund a product idea that required unique tooling, which would have been costly without outside support.
How Crowdfunding Works:
• Create a Campaign: Set up a campaign on a crowdfunding site like Indiegogo. Detail your product idea, show potential backers how it solves a unique problem, and explain your production timeline.
• Pre-Sell Units: By offering pre-sales, you can raise funds to cover production costs before you even make a single unit. This lets you validate demand and build initial support for your brand.
Crowdfunding can provide you with both startup capital and an early customer base, allowing you to move forward with confidence without needing personal funds.
- Arbitrage – Selling Discounted or Clearance Items
Another way to get started on Amazon is by reselling brand-name items from clearance or discount stores. This is known as retail or online arbitrage.
Steps:
• Find Deals at Local Stores: Head to stores like Walmart, Target, or outlet malls and check the clearance sections. Look for big discounts on items that have high resale value.
• Scan Items for Profit: Use the Amazon Seller app to scan barcodes. Only buy items that are selling for at least double the price on Amazon to ensure a good profit margin.
• Expand to Online Deals: Use online marketplaces to find discounted items. This is called online arbitrage and allows you to source products without leaving home.
Important Note for Arbitrage Sellers
Before buying branded items, verify that you’re allowed to resell them without brand approval. Amazon has become stricter about brand approvals and may require an invoice from the manufacturer or distributor rather than a store receipt. You can check these restrictions in Seller Central by entering the product’s UPC.
Requirement Details Invoice Requirements Must be issued by a manufacturer, distributor, or wholesaler, not a retailer Invoice Details At least 180 days old, includes seller’s info and purchased units Product Approval Check in Seller Central before purchasing products
Summary of No-Money Amazon FBA Strategies
Strategy Cost Key Benefit Sell Used Books $0 High-profit margin with free inventory Merch on Demand $0 No inventory needed; Amazon handles everything Crowdfunding 5-10% fee on funds raised Covers upfront production costs without capital Retail Arbitrage Low-cost or free if items are found on clearance Leverages brand recognition for sales
Starting an Amazon FBA Business with Minimal Investment
Once you start making profits, consider reinvesting them to scale your business. If your earnings grow to $500-$1,000 per month, you could shift to selling private label products. This approach allows you to create a brand, build a more sustainable business, and increase your profit margins.
While it’s possible to start an Amazon business with no money, it requires a mix of hard work, creativity, and a willingness to try different strategies. If you’re ready to start, get creative with these methods and focus on building up some initial capital. Then, reinvest to take your Amazon FBA business to the next level.
