Amazon is one of the largest e-commerce marketplaces, offering multitude of opportunities for merchants to cash in some good bucks. And the Amazon FBA program is one of the many opportunities Amazon offers for private label vendors. It’s a gold mine to make money without handling the hassle of shipping.
Amazon says about FBA in its simplest terms: you sell it, then we ship it.
What is Amazon FBA?
FBA stands for Fulfillment by Amazon. It’s a process in which the fulfillment of your orders is done by Amazon in exchange for a monthly fee.
When working with FBA, your investment mostly varies depending on your product. You can either manage your own business of your own products or hire a Virtual Assistant (VA) to hunt, source and launch external products for you, and then handle your account on a monthly basis.
In the latter, your success/failure ratio depends upon your VA’s experience (if you have one) and your product’s survival chances in the market.
For start-ups or part-time businesses, the facility of handling all the orders, deliveries, storage, customers’ queries, and all other related responsibilities is very feasible.
All the seller needs to do is pay the monthly fee and keep their product stocked at amazon. Everything else is done by amazon, ensuring efficient packaging, safe storage, timely deliveries, and 24/7 customer care.
After a certain time, you can flip your business; another benefit which makes FBA superior to other business models. Flipping is an offer made to another party to purchase your currently-running business; amazon’s international market makes it very easy.