For young entrepreneurs, ecommerce offers a fantastic opportunity. Fulfillment by Amazon (FBA) and Amazon arbitrage, which we will explore in more depth here, are two ways to exploit eCommerce to tremendous success. You don’t need a lot of capacity or your own website or warehouse to start establishing your own eCommerce empire with the FBA business model.
Kristin Ostrander, the Founder and CEO of Mommy Income, is here to discuss it more. She sits down with Shawn Hessinger, Executive Editor of Small Business Trends, to talk about how to start an online business with Amazon FBA.
What is Amazon Fulfillment by Amazon (FBA) and how does it work?
Amazon FBA stands for Amazon Fulfillment by Amazon. Let’s say you have a Shopify store that you’d like to shift to Amazon. What happens is that Amazon assigns you a unique label to apply to all of your things, and you send everything in one big box, or several big boxes, pallets, truckloads, or whatever.
You submit it to Amazon, which distributes it to their warehouses, so that when your Amazon prime customer wants two-day free shipping, they order from Amazon as usual. Following that, Amazon picks up your merchandise and delivers it to your consumer. As a result, they’re taking care of all of your customer’s orders instead of you.
What’s the first step?
The first step is deciding how and what you want to sell. If you already have a brand or product and even sell it in stores. You may bring it to Amazon, you’ll sign up for their fulfillment program—or even just as an Amazon seller. You don’t have to use Amazon’s FBA service, but most people do because it offers you access to all Prime users.
If you decide to fulfill your orders yourself, you’ll have to store them in your warehouse or facility and then distribute them to each customer who purchases them.So that’s kind of the difference between what they call merchant to fulfill and FBA. Then, if you’re just bringing your brand to Amazon and want to do FBA, join up. Also, go to their sell on Amazon page. You can find it by typing “sell on Amazon” into Google. Then you can follow along with their step-by-step instructions.
Indeed, started selling on Amazon is simple. However, it’s not as simple as clicking a few shots on eBay, e-mailing and you’re good to go. To make sure it’s you, they ask for you to join a Zoom call. And you hold your license up to your face to ensure it’s you. So, all you have to do to get started is join up as a seller. Moreover, if you already have a product, you’re already ahead of the game. If not, you could begin by looking at the things you want to offer and working from there.
Things to Remember Before Selling on Amazon
- To get started with FBA, you’ll need to know how much money you’ll need to invest, what equipment you’ll need to buy, and so on.
- Where can you learn how to sell on Amazon without having to sift through a slew of DIY YouTube tutorials?
- How to choose an Amazon specialty item that will make you money.
- As an FBA seller, you’ll see how simple and inexpensive it is to market your products.
- How long will it take for you to receive a return on your first investment?