New To Amazon FBA? Here Is A Quick Introduction For Your Success
I am sure we are all know of Amazon and their Multi-billion Dollar empire of $175 billion right? But what you may not know up till now is that a good percentage of that comes from their fulfillment selling services known as Amazon FBA. ( Fulfillment By Amazon). Hence for the purpose of this post, I will go right ahead to give you a quick introduction to Amazon FBA.
Amazon FBA as you have already heard means “Fulfillment By Amazon”. What it means is that you can basically send your inventory to Amazon and they will take care of storing it, picking and packing it for you and also shipping it out to your buyers on Amazon where ever they are.
Now there is one way of looking at it but in reality, there are many layers to getting the grasp on Amazon FBA. If you have been to couple of other blogs online before mine today you may notice that lots of folks has been looking at it from one perspective which can be confusing to valuable readers like you.
In other to be successful with Amazon FBA, you need to focus on one sub-niche within the entire Amazon FBA. You have to be good at one or try and get good at executing one so you can scale it up for big profit. Therefore you need to understand the sub-niches within the big niche called Amazon FBA selling online.
Sub-Niches Within Amazon FBA
These sub-niches includes:
- Private Label and Amazon FBA
- Wholesale Sourcing and Amazon FBA
- Treasure Hunting and Amazon FBA
- Retail Arbitrage and Amazon FBA
Each of these are quite distinctive from one another in approach and if you try to mix the three approaches at once, you will find it difficult to scale in any of them. I did and I learned a bitter lesson.
Private Label and Amazon FBA
Private labeling as the name implies with the Amazon FBA is the idea of legally finding a manufacturer of a particular product of your interest and then ask then to put your label or logo on the product as your brand, order such product and then send it directly to Amazon FBA center for onward handling, picking, delivering and customer services for a minimal fees.
Also it is your responsibility to ensure that such product does not infringe on any trade mark right or patent right.
This topic alone is a whole niche on its own and private labeling happen to be the most lucrative and result oriented with quick return on capital invested. Meaning if done right, you can be very successful within a short period of time.
It is less time consuming and less capital out lay and can be timely with super lead time advantage as your manufactured good can be air cargo-ed in no time to your location.
Hence Private Labeling is a popular choice among successful Amazon FBA participant. Read Honest Few for more details about private labeling. And you can grab this beginners guide below and get started on the right track.
Wholesale Sourcing And Amazon FBA
This approach is more like treasure hunting but in direct relation with whole sellers or multi-store sellers like Wall-Mart, Asda, and the rest that are well known to you.
The idea is basically to approach store managers and find out if there is overstock, understood or out-stock and ask for possible deal on price. This approach require great deal of relationship and communication skill in a semi-formal way.
Meaning you have to be nice with them even though some store managers can be big headed with minor issue. These whole sellers at times may have this stocks pilled up and if you are lucky enough, you may just be the one that will help them sell it off fast.
The challenges with this approach are:
- Be ready to ask humbly and even beg at times
- Be ready to be nice even when you are confronted with hash attitude
- Be ready to make regular trips
- Be ready to create space to stock up goods before sending to Amazon FBA center
The benefits includes:
- You can build good relationship quickly
- If you are nice to the store/whole sellers managers, they can send you update about good deals
- If you are nice, they can give you better discount even before black Fridays for example
- If you have large stock of a fast moving products, you can make a killing very quickly.
The above benefits boils down to being nice. In fact most times you have to be nice and humble or even ask with due respect. Example of been nice is to make sure that you keep the area of the store you’ve rummaged clean after you done searching for your products. Little things like that can go a long way. A good further read on this is Debra of Thrifting for Profit.
Retail Arbitrage and Amazon FBA
Retail Arbitrage sourcing is in itself a whole new level which requires some ardent and specific skills in other to succeed in it. It is basically the same with whole sale sourcing but this time you will be going into more one on one contacts with large store owners or managers, you will need more trips to the store and basically need to peal your eyes open for any good deals.
I came across a guest post on online selling experiment which was well written by John of fbamaster.com that i know you will enjoy quit well because the post threw a whole new light on Retail Arbitrage.
Also if you are looking to take the full benefit of Retail Arbitrage in your hand and start sourcing for best selling product, then Online Arbitrage sourcing is the right ebook for you as seen below :-
Treasure Hunting and Amazon FBA
This is basically similar to the approaches above but with little bit more twist to it. The twist here is referring to the term “treasure hunting” and by that it may mean the ability to improve on an existing best selling item on Amazon and sell it with the FBA program.
With this approach you need to be ready to think out side the box. You need to think creatively on how to improve on an existing product so you can get more sells. It doesn’t has to be a complete product modification as that can be expensive. It can be a minor packaging improvement, creative detailing and descriptions on your listing and or even a new usability that hasn’t been known by the users of such product. A good proponent of this approach is Katharyne of Treasure Hunters.
With that brings us to conclusion today on a quick introduction to Amazon FBA. I am sure after reading this, you should be able to tell the difference between private label, whole sell sourcing, Treasure hunting and Retail Arbitrage with Amazon FBA.
You can lay your hand on this powerful step by step guide below and start learning how to make money with Amazon FBA:-
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