Fulfillment by Amazon is a simple program that the eCommerce giant has set up to help anyone sell their items on their platform. Here is a short list of what Amazon will do for you when you register for their FBA program:
- Store your products in their warehouses, scattered throughout the country;
- Pick, pack and ship products to your customers;
- Handle all refunds and returns;
- Provide amazing customer service to your happy customers.
So, if Amazon is doing all of this, then what the heck do you need to do if you are selling products using the Amazon FBA program?
Here are a few things you will be required to do:
- Manage your inventory levels, so you always have products in stock;
- Answer customer e-mails about your product;
- Drive traffic to your product page;
- Increase the conversion rate of your product page;
- Focus on expanding your empire.
It is important to note that Amazon will gladly offer their fulfillment services to both 3rd party sellers doing arbitrage as well as private label products.
Arbitrage – Basically, this is a labor intensive but highly profitable practice of purchasing products on sale from box stores, flea markets, Craigslist, etc., and selling them for a higher price on Amazon. In a week, you may sell Disney princess dolls, easy bake ovens, kitchen knives and whatever else you can get a good deal on.
Private Label - This is where you source a product from a manufacturer and apply your own personal brand to it. You are the owner of this product! You will store hundreds to thousands of this one product in the Amazon warehouses.
For the sake of FBA Empire, we deal solely with private label retailers as it is less labor intensive and offers an amazing opportunity to become financially free.
Getting back to the whole Amazon FBA process…
It may sound like it is too good to be true but it really is a great program that can help handle a large portion of your business. Much like anything else in business there are some risks, so let’s take a quick look at the negatives and positives of using Amazon FBA for your eCommerce business.