How to Become an Amazon Seller with Little Capital

Selling on Amazon can be very profitable. A lot of people do this full time, and lead very comfortable lives. You probably already know this, which is why you want to become an Amazon seller. However, you think capital might be a challenge. Well that brings us to the question, how do you become an Amazon seller with little capital? This question begs another one, what exactly is little capital? Is it $1000 or $500? We know the word “little” here, is relative. What’s little to a fellow who makes $5000 a month might not be little to another who makes $1000 a month.

Whether little to you is $500 or $100 you can become an Amazon seller. What if little to you is $0.00? Not to worry, at the end of this article you’d have learnt how to sell on Amazon for free. I know it might sound too good to be true, keep reading to see exactly how easy it is to become an Amazon seller with little capital.

How to Sell On Amazon for Beginners

Basically, the places you’ll incur costs as a beginner on Amazon are in getting your inventory, (that is, products you’ll be selling on Amazon), selling on Amazon fees and then registering to be an FBA seller. What we are trying to achieve here is to how to eliminate these costs. Eliminating the cost of inventory is very easy. All you need do is to source inventory from around you. Just look for objects you do not need in your house, check if they are selling on Amazon, and then sell. The way to check if they’re selling on Amazon is to check if that product got a review recently. So you can do this for those items you don’t need anymore. Keep the money together, you can then buy inventory which you’ll sell on Amazon.

The next fee that to should eliminate is the FBA fees. So there are two ways to register for Amazon FBA. You can either register as an Amazon professional seller, where you’d be charged $40 on registration. The other way is to register to be an Amazon individual seller. With this plan you’d be charged $0.99 for every single product you sell on Amazon. So, if you’d be selling more than 40 items a month, you should register as a professional seller. Since you’re are just testing the waters, the Amazon individual seller would be ideal for you.

How to Become an FBA Seller

FBA simply means fulfilled by Amazon, this model was started by Amazon few years ago. Basically what it entails is that Amazon helps you ship your products to your customers, for a fee. With this model, the hassle of shipping and doing customer care is eliminated. All you need do is source for the products, package them and ship to an Amazon fulfilment centre closest to you. If you are also thinking of how to sell on Amazon prime, it’s same way. Only Amazon FBA sellers are eligible to take part in Amazon Prime. Amazon takes care of the goods getting to your customers.

Now that we know the advantage of be an Amazon FBA seller, how do you become an FBA seller? First you need to register to be an Amazon seller.
Log on to to create an Amazon seller account. When prompted, choose the Amazon individual seller option as earlier stated. Next click “inventory” to add your products, after you’ve added your products and details regarding the products, such as its condition and price, next would be to convert your products to FBA products. On your home seller page, click on the “manage inventory” option. Next, click the “Actions” button, then click on “change to fulfilled by Amazon” option. So from now on, your inventory will be fulfilled by Amazon.

Inventory by Retail Arbitrage

We’ve seen how to sell on Amazon for free, now we are going to see how to become an Amazon seller with little capital. Compared to other methods for sourcing for inventory, retail arbitrage is the cheapest to start.

The idea behind this is to buy low, extremely low actually, and then sell high. Go into stores doing clearance sales, or some kind of promo. Just make sure the goods are available to be bought at a very low price, so you can flip it for profit on Amazon. The question is how to know which product will be profitable or not. Well that’s where the Amazon seller app comes in. it is a very important weapon in the arsenal of anyone who sources for inventory using retail arbitrage. With the app you can scan the bar code of any product you’re going to buy. It shows you very important information about the product you are about to buy.

First you get to see a pictorial representation of the product, how much it costs on Amazon, (i.e. both the highest selling price and the lowest selling price. How much profit you’d be making after Amazon has taken commission, ranking of the product and so many more. If you are to do retail arbitrage successfully, then you need to have the Amazon seller app or its equivalent. The app is free to use, you can get it on Google Play Store or on the App store.

You can also do this online, you can check online stores like Walmart and others, see goods that are being sold at giveaway prices, compare them on Amazon, and then see how much profit you can make. Unlike when you are doing the Private Label Model, there’s no minimum quantity you have to order. You can buy one item or a thousand items. The more you buy though, the more profit you can make.

Another way to find very cheap inventory is using the Trendosaur software. Trendosaur helps you scan millions of stores and products all over the world to help you identify low cost, high profit products that you can list on your store using the dropshipping method


The time to start is now, you don’t have to wait until you have that $2000, to become an Amazon seller. If money has been your excuse, I guess you no longer have any excuse, start small, and then gradually scale your business.

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