How You Can Share in Amazon’s Global Success and Make Money From Fulfillment by Amazon

How You Can Share in Amazon's Global Success and Make Money From Fulfillment by Amazon

How You Can Share in Amazon’s Global Success and Make Money From Fulfillment by Amazon

Amazon is a marketplace that originally started as a place to sell books. But in the last decade it has graduated to selling anything and everything… and become one of the biggest brands in the world. Not only that, it’s a well-known brand that sells products on Amazon itself, encouraging entrepreneurs to share in their success – in fact.

Over the past few years Amazon has been working on other ways that you can make money by partnering with them.

How you can share Amazon’s global success and earn money from Fulfillment by Amazon

Now to me Fulfillment by Amazon seems like a really exciting way to make money in the 21st century internet age. Because it is a business model where you can focus only on marketing and sales. Then let Amazon do all the “hard” physical work of stocking, storing and shipping your products to your customers for you.

You know, Amazon has always been something of a puzzle to me! They come up with the latest, most sophisticated business models and invest millions to make them successful. There is no doubt that Amazon’s brand image, ordering and distribution systems are very similar.

They then let any Tom, Dick, or Harriet share for free. Why they allow common people to avail all these benefits without any up-front cost, I don’t know! It seems crazy, it doesn’t make sense at all, but they do it… and it’s almost always a huge success.

So I thought it was about time we returned to

Amazon and looked at how Fulfillment by Amazon works,

whether it’s as good as it sounds… and whether it can make you some money.

So, what exactly is Fulfillment by Amazon?

Like all Amazon concepts, the core concept of Fulfillment by Amazon is simple… although there are a lot of in-and-outs that I’ll get to later. With this service you ship the products you want to sell (your inventory as Amazon likes to call it) directly to Amazon. Be it books, CDs, clothes, computer accessories, toys or anything else. They store it in their warehouse for you. Amazon will then pick, pack and ship the product for you directly to your customers when the order is received.

This is what Amazon calls multi-channel fulfillment. One more thing: If you start using Fulfillment by Amazon, you don’t have to fulfill everything by Amazon. You may use it for some products and not for others.

Advantages – Disadvantages

So, let’s take a look at the pros and cons of Fulfillment by Amazon:

Pro. You will benefit from Amazon’s reputation. Amazon is a brand trusted by customers worldwide When they order something that’s shipped by Amazon they know they’ll get it. and fast. And they know they can give it back if they want. This can make a huge difference when they decide to buy from you.

Pro. You can provide fast service. Amazon has sophisticated online order processing and fulfillment operations. Chances are they can get your products to your customers faster than you can.

Pro. Your products can rank higher on Amazon. Your item with a Fulfillment by Amazon item doesn’t often appear at the top of searches. Non-fulfillment products by Amazon sellers are listed by total cost (product price plus shipping) but your items are listed by price only. So often you can price your items closer to the lowest total price, possibly being the first item on the list and attracting more buyers.

Pro. Your customers can get free delivery. Using Fulfillment by Amazon means your customers get free delivery of your products… using Super Saver Delivery or Amazon Prime. This can give you a big advantage over sellers who don’t use Fulfillment by Amazon.

Pro. Lower overheads. You have to do the figures but, in most cases, there can be good cost savings. With FBA you don’t need premises for storage, picking/shipping staff and associated admin. It may even mean you can lower your prices, sell more products and still make more profit.

Pro. You can be much more productive. I think this is the biggest potential benefit. When you use FBA

Author: admin

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