What is Amazon FBA? | Simply Explained in 8 Minutes

[ad_1] So let's first look at how amazon fba actually works so let's say i want to make some money by selling products on amazon well the first thing i need to do is to find a product that would be actually good to sell on amazon and i'm going to show you Exactly how to do that in the product research phase then once i found my product i'm gonna go and look for a manufacturer a supplier for this specific product who can make that product for me because we're not gonna create the products ourselves once i found a good Manufacturer i'm going to order a specific amount of products from that specific supplier then the supplier is going to create the products they're going to manufacture the products for us and once those products are manufactured we're gonna tell our supplier to send those products into an amazon warehouse called amazon Fulfillment center then once our products arrive in the amazon warehouse we can create a listing for our product on amazon and then people can actually find our product on amazon and go ahead and buy it once they buy our product amazon will take care of the rest they Will ship the product to the customer they will take care of the returns and also of the customer support once our product is listed and it's getting sales on amazon all we need to do is to make sure to continue ordering new products from our supplier tell the supplier to Send them in the warehouses so we don't run out of stock and we can continue selling the products on amazon so fba stands for fulfillment by amazon because once somebody goes to our listing and buys our product amazon is going to be responsible to fulfill that specific Order and ship that product to the customer there's also something called fbm which stands for fulfillment by merchant if you go with the fbm model then once somebody orders your product on amazon you as the seller are going to be responsible for shipping that product to the customer so you're going to be Responsible for the fulfillment now for this video we're going to focus on fba so fulfillment by amazon now let's go over the four main business models how you can sell on amazon the first one is wholesale if you do a wholesaling then you're basically buying a lot of Products in bulk from established brands and you're reselling them on amazon to make a profit the second one is retail arbitrage if you do this business model then you're just going out and find discounted products from retailers and you're listing them on amazon to sell Them for a profit you can also do drop shipping if you're going to be drop shipping you're going to create a listing for a specific product on amazon and then once somebody buys that product you're going to tell your supplier for that product to sell it directly to the Customer and then the fourth business model is private labeling this is going to be the business model that you're going to learn how to do in this specific video so with private labeling what we're basically doing is we're going to go out and look for products that are already selling on amazon and Then we're going to sell the exact same product or a better version of it with our own logo and branding and because we're selling a high quality and branded product we're able to sell it for a very high price point also giving us a very good profit margin and making us a lot Of money here you can see some examples of private label products take for example this head shaver right here this is probably manufactured somewhere in china for like 30 but because this is branded and there's actually a logo on the product they're able to sell it for a hundred and ten Dollars giving them a very high profit margin and they're probably also making a lot of money and it's basically the same thing with these resistance bands or this water bottle now what are some advantages and disadvantages to start an amazon fba business the by far biggest advantage of starting an amazon business Is that you're going to be able to leverage the brand and infrastructure off amazon amazon is the biggest e-commerce platform on the planet and they already have millions of customers buying from amazon every single day and you're going to be able to access those customers if you put your product on Amazon you'll also be able to take advantage of the infrastructure of amazon meaning you don't need to rent a warehouse and ship the products to the customers yourself amazon is going to do all that for you they're also going to manage a lot of the customer support and Handle their returns and your products are going to get to the customer as quickly as possible with prime shipping now another advantage in terms of this specific business model is that once it's running it can be very passive so once your product is listed and it continually gets clicks in the amazon Search engine then all you need to do is make sure to send more products from your supplier to the amazon warehouses and everything else will basically run on autopilot so it's really kind of a passive business once it's actually running and that's also why amazon fba is a great business Model to start as a side hustle and then once it grows big enough you can do this full time and grow a million dollar brand another great thing about this business model is that you're going to have location independence all you need to run this business is a computer and An internet connection so as you can see there's a lot of advantages of starting an amazon fba business and leveraging the amazon fba platform however you're also going to need to play by amazon's rules if you want to sell on their platform because eventually it is their platform and it's also their customers So this could definitely be considered a disadvantage of selling on amazon that you're basically going to be dependent on this specific platform you're also gonna need to pay fees for every sale that you make directly to amazon and it's also very hard to build a customer list from people who actually buy your Product because amazon really wants to keep all the data for themselves now with all that being said i do think that amazon fba is one of the best business models you can start right now especially if you are a beginner and now let's go over some of the most asked Questions about amazon fba the first one is how much money do i need to start this business and a good range would be two thousand to five thousand dollars as a starting budget because in order to sell on amazon you're gonna need to order a specific amount of units Of your product and sell that to the warehouse before you can make your first sale and you're gonna have to pay that upfront to the supplier also you're gonna have to pay for shipping those products into the amazon warehouse that's why i need a starting budget of two thousand to five thousand dollars Obviously the more the better if you have less than two thousand dollars then it's better to make some more money and start the business the right way once you have enough money how long will it take to make money so usually it takes three to six months to make your first Sale on amazon with your new product reason being is because you're gonna need to take some time to find a good product then you need to find a supplier for that product and once you have found a supplier for a good product to sell that supplier obviously needs some time To manufacture those products once they're manufactured you need to send them to a warehouse which depending on your shipping method can also take like a month and that's why it takes a couple of months to get your first sale on amazon but obviously the more time you spend on Your business in the beginning the quicker you'll be able to get it running how much money can i make with amazon fba so actually there's really no cap of how much money you can make obviously it depends on what product you're selling your profit margin how many products you're selling and how Big your brand eventually is but as a beginner i would shoot for somewhere in between three thousand and ten thousand dollars per month in profit then can i do this from anywhere yes we already talked about this and is amazon fba already too saturated the answer is no obviously there are Some niches where the saturation is quite high and it's going to be very difficult to get in that market as a beginner however there still are a lot of markets where you can still get in where it's not too saturated and honestly if you have a good listing a High quality product and good branding it's not that difficult to outperform all the other products that are already selling on amazon and that's what you're gonna learn exactly in this video how to find a great product how to brand that product and how to create an amazing Listing where the customers are going to choose your product over all the other ones [ad_2] #Amazon #FBA #Simply #Explained #Minutes For More Interesting Article Visit : 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