Course outline
Module 1
Module 1: Getting Started with Amazon FBA
Getting Started with Amazon FBA
Knowledge check
Q1. What does FBA stand for in the context of Amazon selling?
- A. Fulfilled By Amazon ✓
- B. Fast Business Account
- C. Free Brand Advertising
- D. Final Buyer Approval
Why: FBA stands for Fulfilled By Amazon, a program where sellers send their inventory to Amazon warehouses, and Amazon handles storage, packing, shipping, and customer service for those products.
Q2. Which of the following is a primary responsibility the seller keeps when using FBA?
- A. Packing and shipping each customer order
- B. Handling customer returns at the warehouse
- C. Sourcing and purchasing the product inventory ✓
- D. Operating the warehouse storage facilities
Why: Under FBA, the seller remains responsible for sourcing, manufacturing, or purchasing the products they sell. Amazon takes over fulfillment tasks such as storage, picking, packing, and shipping.
Q3. What is the Amazon Standard Identification Number (ASIN)?
- A. A unique seller account password
- B. A shipping carrier tracking code
- C. A unique identifier Amazon assigns to each product listing ✓
- D. A tax registration number for sellers
Why: The ASIN is a 10-character alphanumeric code Amazon uses to uniquely identify each product in its catalog. Sellers use it to match their items to existing listings.
Q4. Which type of Amazon seller account is generally recommended for high-volume sellers who want to use FBA?
- A. Individual account
- B. Professional account ✓
- C. Trial account
- D. Guest account
Why: The Professional seller account has a monthly subscription fee but removes per-item selling fees and provides access to advanced features like FBA, bulk listing tools, and API access, making it suited to higher-volume sellers.
Q5. What is a key benefit of using FBA for Prime eligibility?
- A. Sellers automatically receive Amazon Prime membership fees
- B. FBA products can qualify for Prime's fast, free shipping, which can attract more buyers ✓
- C. Prime members can only buy from sellers who ship themselves
- D. Prime eligibility removes all Amazon selling fees
Why: Products fulfilled by Amazon are eligible for the Prime badge and Prime shipping benefits, which often increases visibility in search results and helps convert shoppers who prioritize fast delivery.
Module 2
Module 2: Product Research and Niche Selection
Product Research and Niche Selection
Knowledge check
Q1. When beginning product research for Amazon FBA, which metric best indicates consistent customer demand for a product?
- A. The number of seller listings for the product
- B. Monthly search volume and sales rank trends over time ✓
- C. The product's original manufacturing cost
- D. The number of five-star reviews on a single listing
Why: Monthly search volume and sales rank trends show how many shoppers are looking for and buying a product over time. Consistent demand across months is a stronger signal than a single snapshot, while seller count and reviews on one listing do not directly measure demand.
Q2. What does a high Best Sellers Rank (BSR) number, such as 500,000, generally indicate about a product?
- A. The product is among the top sellers in its category
- B. The product sells relatively few units compared to top-ranked items ✓
- C. The product has the highest profit margin in its category
- D. The product is exclusive to Amazon and cannot be sold elsewhere
Why: BSR ranks products by sales within a category, where a lower number means better sales. A rank of 500,000 indicates the product sells far less frequently than items ranked in the hundreds or thousands.
Q3. Which of the following is a beginner-friendly niche characteristic that FBA sellers often look for?
- A. A market dominated by a few large brands with heavy advertising budgets
- B. Products that are lightweight, small, and not easily broken ✓
- C. Items that require special licenses or certifications to sell
- D. Products with extremely seasonal demand that sell only one month a year
Why: Lightweight, compact, and durable products lower shipping and storage fees through FBA and reduce the risk of damage. Markets dominated by big brands, heavy licensing requirements, and extreme seasonality all add risk for beginners.
Q4. Why is it important to check competition levels, such as the number of sellers and reviews on top listings, during niche selection?
- A. High competition guarantees a quick and easy sale
- B. It helps estimate how difficult it will be to win sales and whether a new seller can realistically compete ✓
- C. Amazon only allows new sellers to list products in low-competition niches
- D. Competition levels determine the exact shipping cost of a product
Why: Assessing competition helps a new seller judge whether they can realistically earn sales against established listings with many reviews and sellers. Strong competition is not a guarantee of sales, and Amazon does not restrict niches based on competition.
Q5. What is the main purpose of calculating estimated profit margin before choosing a product to sell on Amazon FBA?
- A. To determine how many reviews the product will receive
- B. To confirm that the product will remain profitable after accounting for costs such as the purchase price, Amazon fees, and shipping ✓
- C. To set the product's official Amazon category
- D. To decide which language the listing should be written in
Why: Profit margin analysis accounts for all costs, including product cost, Amazon referral and FBA fees, and inbound shipping, to confirm the product will earn money. Skipping this step can lead to selling items at a loss.
Module 3
Module 3: Sourcing Products and Suppliers
Sourcing Products and Suppliers
Knowledge check
Q1. What is the primary benefit of working with a supplier that offers private labeling for an Amazon FBA business?
- A. It allows you to sell generic products that customers cannot distinguish from competitors
- B. It lets you put your own brand name and packaging on a product you did not manufacture yourself ✓
- C. It eliminates the need to pay for inventory until the product sells
- D. It guarantees that Amazon will feature your listing in search results
Why: Private labeling means a manufacturer produces a product that you brand as your own. This helps build brand recognition and differentiates your listing from identical products sold by other sellers.
Q2. Which platform is most commonly used by beginners to find wholesale and manufacturing suppliers for Amazon FBA products?
- A. Google Analytics
- B. Alibaba ✓
- C. Shopify
- D. LinkedIn
Why: Alibaba is a large B2B marketplace connecting sellers with manufacturers and wholesalers, especially in China, making it a common starting point for FBA sourcing. Shopify is an e-commerce platform for building your own store, not a sourcing tool.
Q3. Before ordering a large batch of products from a new supplier, what is the most important step to take?
- A. Pay the full amount upfront to secure a lower price
- B. Order a sample to check quality, packaging, and accuracy of the product ✓
- C. Immediately create Amazon listings with professional photos
- D. Skip verification and rely on the supplier's online reviews
Why: Ordering samples lets you verify product quality, materials, packaging, and whether the item matches the description before committing significant capital. This reduces the risk of costly defects or returns.
Q4. What does MOQ stand for when communicating with suppliers?
- A. Maximum Order Quantity
- B. Minimum Order Quantity ✓
- C. Monthly Output Quota
- D. Manufacturer Overhead Quotient
Why: MOQ stands for Minimum Order Quantity, the smallest number of units a supplier will sell in a single order. Understanding MOQ is essential for budgeting and determining whether a supplier fits your startup capital.
Q5. Why is it important to check whether a product is restricted or requires approval before sourcing it for Amazon FBA?
- A. Restricted products always sell faster and earn higher profits
- B. Some categories require approval or documentation, and selling unapproved items can lead to listing removal or account suspension ✓
- C. Amazon only allows restricted products to be shipped by the seller
- D. Restrictions only apply to products shipped from outside the United States
Why: Amazon restricts or gates certain categories such as grocery, health, and some electronics. Sellers must obtain approval or provide compliance documents, and listing unrestricted-but-regulated items can result in suspension of the seller account.
Module 4
Module 4: Understanding Amazon Fees and Profitability
Understanding Amazon Fees and Profitability
Knowledge check
Q1. Which of the following is typically the largest recurring fee an Amazon FBA seller pays on a sale?
- A. Inbound shipping fee
- B. Referral fee ✓
- C. Storage fee
- D. Account subscription fee
Why: The referral fee is a percentage of the total sale price (commonly around 8% to 15% depending on category) and is usually the largest recurring fee on each item sold.
Q2. What is the main purpose of the Amazon FBA fulfillment fee?
- A. To cover Amazon's cost of picking, packing, and shipping orders to customers ✓
- B. To pay for product listing photos
- C. To fund advertising campaigns on Amazon
- D. To cover the cost of seller account verification
Why: The fulfillment fee compensates Amazon for picking, packing, shipping, and handling customer service for each order fulfilled through FBA.
Q3. Why is the monthly inventory storage fee higher during certain months of the year?
- A. Amazon charges more for storage during holiday season when warehouse space is in high demand ✓
- B. Amazon raises storage rates to discourage sellers from listing products
- C. The fee depends on the seller's total sales volume
- D. Storage fees are fixed and never change throughout the year
Why: Amazon increases storage fees during peak periods (typically October through December) because warehouse space is more constrained and demand is higher.
Q4. A seller sells a product for $40 with a 15% referral fee and a $6 fulfillment fee. What is the seller's profit before cost of goods sold?
- A. $34.00
- B. $28.00 ✓
- C. $6.00
- D. $40.00
Why: The referral fee is 15% of $40, which is $6. Subtracting the referral fee ($6) and the fulfillment fee ($6) from $40 leaves $28 before accounting for the cost of goods sold.
Q5. Which factor should a new FBA seller consider most carefully when calculating profitability?
- A. Only the product's selling price
- B. Only the cost of goods sold
- C. All Amazon fees, shipping costs, and cost of goods combined ✓
- D. Only the number of product reviews
Why: Accurate profitability requires accounting for every cost, including referral fees, fulfillment fees, storage fees, inbound shipping, and the cost of goods, not just the selling price or a single expense.
Module 5
Module 5: Creating Compelling Product Listings
Creating Compelling Product Listings
Knowledge check
Q1. Which element of an Amazon product listing is typically displayed first and carries the most weight for shoppers scanning search results?
- A. Product bullet points
- B. Product title ✓
- C. Customer reviews summary
- D. Backend search terms
Why: The product title appears first in search results and on the product page, so it is the most visible element. A clear, keyword-rich title helps shoppers quickly understand the product and helps Amazon's search algorithm match the listing to relevant queries.
Q2. What is the recommended number of images for an Amazon product listing to give shoppers a complete view of the product?
- A. 1 image
- B. 3 images
- C. At least 5 to 7 images ✓
- D. Exactly 10 images
Why: Amazon allows up to nine images, and sellers are encouraged to use at least five to seven to show the main product, multiple angles, scale, packaging, and use cases. More images help shoppers evaluate the product without needing to guess, which supports conversions.
Q3. Which of the following should be avoided in the main product image on Amazon?
- A. A white or plain background
- B. The product filling at least 85% of the frame
- C. Promotional text, watermarks, or borders ✓
- D. Showing the product from a straight-on angle
Why: Amazon's image guidelines require the main image to show the product clearly on a pure white background, without text, logos, watermarks, borders, or extra graphics. Other images may include lifestyle or infographic elements, but the main image must comply with these rules.
Q4. What is the primary purpose of bullet points in an Amazon product listing?
- A. To list the seller's shipping policies
- B. To highlight key features and benefits in a scannable format ✓
- C. To insert legal disclaimers for the brand
- D. To display the product's sales ranking
Why: Bullet points let shoppers quickly scan the most important features, specifications, and benefits of a product. Well-written bullets focus on what the customer gains and answer common questions, making the listing easier to read and more persuasive.
Q5. Which practice best describes effective use of backend search terms in an Amazon listing?
- A. Repeating the brand name dozens of times
- B. Adding relevant keywords and synonyms that shoppers might use but that do not fit naturally in the visible text ✓
- C. Including competitor brand names to attract their customers
- D. Filling the field with full sentences describing the product's story
Why: Backend search terms are hidden from shoppers but indexed by Amazon's search engine, so they are ideal for relevant synonyms, alternate spellings, and related keywords that do not fit the visible title or bullets. Using competitor brand names violates Amazon policy, and keyword stuffing or sentences reduce effectiveness.
Module 6
Module 6: Shipping, Inventory, and Fulfillment
Shipping, Inventory, and Fulfillment
Knowledge check
Q1. What does FBA stand for in Amazon's fulfillment program?
- A. Fulfilled By Amazon ✓
- B. Fulfillment By Associates
- C. Freight Based Allocation
- D. Framework for Bulk Acquisition
Why: FBA stands for Fulfilled By Amazon. Under this program, sellers send inventory to Amazon's fulfillment centers, and Amazon stores, picks, packs, and ships orders to customers, handling customer service and returns as well.
Q2. Which shipping method does Amazon require for inventory sent to its fulfillment centers in a small parcel shipment?
- A. Sellers may ship using any carrier without a label
- B. Sellers must print and attach an Amazon-generated shipping label to each box ✓
- C. Sellers should leave boxes unlabeled so Amazon can sort them
- D. Sellers must ship only by ocean freight
Why: Amazon requires sellers to print and affix its shipment labels to each box in small parcel shipments. These labels let Amazon's receiving system match each box to the correct inbound shipment and seller account.
Q3. What is the main purpose of the Inventory Performance Index (IPI) in FBA?
- A. To set the retail price of products automatically
- B. To measure how efficiently a seller manages inventory, which affects storage limits and fees ✓
- C. To track customer review scores
- D. To calculate income tax owed by the seller
Why: The IPI scores how well a seller manages inventory in Amazon's warehouses. A higher score can grant higher storage capacity, while a low score can restrict how much inventory a seller may send in.
Q4. Which fee applies when inventory stays in an Amazon fulfillment center longer than a set period?
- A. Referral fee
- B. Long-term storage fee ✓
- C. Returns processing fee
- D. Inbound placement fee
Why: Amazon charges long-term storage fees for inventory that remains in its fulfillment centers beyond a specified age threshold. Sellers are encouraged to monitor inventory age to avoid these charges and to remove slow-moving stock.
Q5. What is a key benefit of using FBA for Prime-eligible products?
- A. Sellers must handle all customer returns themselves
- B. Products can qualify for Prime shipping benefits, which often increases visibility and conversion ✓
- C. Sellers can avoid paying any fees entirely
- D. Shipping times are always longer than seller-fulfilled orders
Why: FBA inventory is eligible for Prime, giving customers fast and free shipping benefits. This typically improves the buy box chances and conversion rates, which is a major advantage of the program.
Module 7
Module 7: Marketing, Reviews, and Scaling Your Business
Marketing, Reviews, and Scaling Your Business
Knowledge check
Q1. Which Amazon feature allows sellers to run pay-per-click advertisements that appear in search results and on product detail pages?
- A. Amazon Vine
- B. Sponsored Products ✓
- C. Lightning Deals
- D. Subscribe & Save
Why: Sponsored Products is Amazon's core pay-per-click advertising format, showing ads in search results and on product detail pages to increase visibility for individual listings.
Q2. What is the primary purpose of Amazon Vine?
- A. To let sellers offer discounts to Prime members only
- B. To provide free products to trusted Amazon reviewers in exchange for honest reviews ✓
- C. To bundle multiple products into a single listing
- D. To automatically translate product listings into other languages
Why: Amazon Vine invites trusted reviewers to receive free products from brands and sellers, helping new products gather early, credible reviews.
Q3. According to Amazon's policies, which of the following is NOT allowed when seeking product reviews?
- A. Sending a follow-up message asking for feedback through Buyer-Seller Messaging
- B. Offering a refund or gift card in exchange for a positive review ✓
- C. Including a product insert card that invites customers to share their experience
- D. Enrolling in the Amazon Vine program
Why: Amazon prohibits incentivizing reviews, including offering refunds, gift cards, or other compensation in exchange for positive feedback, as this violates review manipulation policies.
Q4. What does the Amazon Best Seller Rank (BSR) indicate?
- A. The total revenue a product has generated since listing
- B. The number of reviews a product has received
- C. A product's sales performance relative to other products in its category ✓
- D. The profit margin of a product after Amazon fees
Why: BSR reflects how a product's recent sales compare to other items in the same category; a lower number means stronger sales performance.
Q5. Which strategy is most commonly used when scaling an FBA business to a new product line?
- A. Launching many unrelated products at once without testing demand
- B. Researching demand, testing with a small inventory order, and expanding once sales data confirms performance ✓
- C. Removing all advertising to reduce costs immediately
- D. Switching to fulfilling all orders yourself to save on FBA fees
Why: A measured approach of validating demand and testing with limited inventory reduces risk and lets sellers scale based on real sales data.