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Introduction: Understanding the Program
Anyone who has ever tried to sell anything online, whether it is through their own personal website, or by making use of major e-commerce platforms such as eBay or Shopify, can attest to the fact that often the most frustrating and generally unpleasant component of any transaction is the packing, shipping, and fulfillment of the orders. Quite honestly, this is the most labor-intensive portion of any online selling operation; with the time it can require limiting the amount of orders that can be filled, and ultimately eating into potential profits.
So what if you could completely remove this time-consuming step from the process, freeing up more opportunities to focus on actually increasing sales and accumulating greater cash flow? Well, Amazon may just have found a way to make that happen for you. In the past few years, this e-commerce giant has introduced a great little program that allows you to sell any number of items including: media, books, and household products, among other in demand consumer goods, without all the hassle of fulfilling the orders yourself.
In this book, well explore how this program, referred to as Amazons Fulfillment by Amazon program (FBA), can get you one step closer to making your home-based or small business goals a reality. Explore the following chapters to gain a greater understanding of the Amazon business model, and how it can offer you the flexibility and freedom to achieve your goals.
Chapter 1: A Brief History of Amazon
Founded by Jeff Bezos in 1994, Amazon is an American e-commerce company based in Seattle, Washington. Currently the largest internet-based retailer in the United States, Amazon possesses some truly humble beginnings. With its very first headquarters located in Bezos garage, it soon began to expand when Bezos realized that his books were selling to buyers all across the United States. He knew then that there was an opportunity to expand his market. Inspired by the potential, Bezos created a website that offered a wider range of items and accessibility than a bricks and mortar bookstore could. Once book selling was well established, he soon diversified, adding CDs, computer software, DVDs, toys, household items, and other goods into the mix. Within a relatively small span of time, large retailers such as Old Navy, Target, and Toys R Us were signing on to sell their merchandise using the Amazon platform. This allowed an even greater opportunity for Amazon to expand its offerings, and open up even more product categories. With over thirty different product categories, and over thirty-six million products listed (not even counting the books), there is an absolutely tremendous opportunity to reach buyers and start making sales on Amazon. So how can you tap into this?
Quite easily actually! More and more home-based and small business owners are focusing an increasing amount of both their time and resources tapping into the expanding FBA market. Whether you are considering producing your own items, or simply purchasing items to re-sell, there is a significant amount of potential waiting to be developed. Regardless of your financial goals, background, and experience, this book can help you make Amazons FBA system work for you!
Chapter 2: So, What Exactly is Fulfillment By Amazon (FBA)?
Put quite simply, the Fulfillment by Amazon model revolves around the production or acquisition of a product that can then be sold using Amazons online sales website. While you narrow down which products youd like to sell and set your pricing, Amazon will take care of the storage and distribution of your product, as well as the customer service component. This leaves you with more free time to focus on achieving your actual goals increasing sales and making more money!
Keep in mind that FBA is not a brand new program, and it boasts an impressive track record of success. Amazon has been building warehouses and distribution centers throughout the United States to ensure that all customers receive orders quickly and inexpensively, and in some cases even for free. As a result of this expansion and efficiency, many sellers, both small and large, have been making use of the FBA program for years, embracing its capabilities and enjoying a steady stream of profit.
With FBA, you as the seller have the opportunity to take advantage of the extensive Amazon facilities, effectively outsourcing the packing, shipping, and fulfillment part of your business. Touted as the future of online retail for home-based and small business sellers, FBA is a fantastic way to lessen or even eliminate your headaches and hassles as a reseller, allowing you to focus on improving and ultimately growing your business.
Within the following chapters, well explore the ins and outs of Amazons FBA program, allowing you to decide if its the right choice for your business model. With a little motivation, some newly acquired knowledge, and the tools in this book, youll be that much closer to having the business youve always wanted.
Chapter 3: Laying the Groundwork
Like many worthwhile undertakings, the Amazon FBA program is one that can bring you great success only if you take the time to educate yourself on the ins and outs of how it functions. Like any program, there are pros and cons, and well explore both categories in later chapters. Regardless, it is important that you lay the groundwork before you sign up for any program, and that you use whatever tools are available to you to evaluate whether the service is right for you and your business goals. Educating yourself and becoming FBA literate is going to keep you moving forward, and help you avoid any unwelcome surprises. Before jumping in with both feet, it is important to find the answers to any pressing questions that you may have. Some things you might consider in the initial groundwork phase include:
Researching Potential Items
One of the fundamental things you should explore before you begin to delve into the FBA program, is understanding which products will successfully sell on Amazon. You need to be able to identify the products that consumers want, so that you can compare and contrast with your potential items, seeing how they measure up, and evaluating if youre able to achieve that level of success for yourself.
One way to explore this is by checking the top-selling Amazon product listing. Things to establish a potentially well-selling product include:
- A high volume of consistent sales
- A price that is acceptable to both sellers and buyers
- A solid number of satisfied reviews
While you do want to identify the items that people are purchasing frequently, you also want to establish that a solid profit can be made from the sales, and that people overall are satisfied with the purchase. Once youve balanced these criteria, youve found your selling sweet spot.