In this post I’m going to cover what I’ve found to be the best advantages of being an Amazon seller, using their Fulfillment by Amazon service. These 7 factors are based upon my experiences as an Amazon seller, plus knowing dozens of Amazon sellers personally.
These benefits aren’t to be taken lightly. Never before has there been such a massive opportunity to create wealth online through becoming an Amazon seller. So much so, that I believe creating an Amazon business to be the best opportunity that’ll arise within the next 10 years.
1. No product handling
You don’t need to ever pack an order again. As an eBay seller (who started selling on eBay AFTER starting his Amazon business), there’s a sheer time cost involved in packing. I take up to 2 hours per day to pack orders, before making the daily pilgrimage to the Post Office. On the other hand, Amazon does my fulfillment for me.
Amazon will pack your product on the shelves when they arrive at the warehouse. Then, when orders come through, they’ll pick and pack those orders into their own boxes and send it out to the customer. There’s a minimal fee that comes with this, and Amazon prefers sellers who use their warehouses with higher product rankings.
2. No warehousing or logistics
When starting a traditional importing business, you’d have to invest into warehousing, forklifts, leases, fitouts, pallet racking, bubble wrap and a host of other expenses. See the photo above, and consider the massive costs involved with traditional logistics. From trucks, to warehouses, forklifts and your biggest cost…staff. With Amazon, that’s taken care of for you for a minimal cost.
3. Customer service management
Amazon handles most of the customer service for you. Most buyers actually believe Amazon is simply the seller of the product, and will contact Amazon themselves. It’s wise to perform some occasional engagement, especially if it’s a specific question regarding the product and its use.
4. No website required
Amazon has the buyer traffic, so there’s no need to spend money and time building your own website. If people are going on to Amazon, they want to buy. It’s not a research tool. That’s Google. People are searching for a product, and you can advertise yours directly on there, whether organically or through PPC marketing.
75% of households in the US have bought on Amazon before. That’s more than 300 million people, and these are often repeat-buyers too. People know, like and trust Amazon’s easy of use as a marketplace.
5. Payment and returns management
Amazon’s payment gateway is the most secure and reliable in the world. Plus, most buyers have their credit card information saved. They are buyers, and they’re ready to go! Plus, any returned products will be handled by Amazon’s warehouse team for you automatically. When customers land on your website, they don’t know you. They don’t trust you. It’s simply harder to convert a stranger to a paying customer through going solo. People trust Amazon.
6. Growth through easy of scale
Never before has the opportunity to scale an online business been so easy. Amazon provides sellers with the perfect platform to create a business that could make $10k per month, $100k per month or even crack the holy grail of 7 figures monthly. Even with minimal staff and minimal start-up capital. It does take time, but it’s certainly possible to scale up easily through reinvesting of start-up capital.
7. Easy expansion into other Amazon marketplace
Amazon has its own platforms in Europe (UK), Australia and Canada, with worldwide domination plans. I highly recommend launching on the US platform, and eventually scaling towards these smaller markets which are growing in size every month.
There’s a misconception that the US marketplace is saturated. Very much far from the truth, and it is the ideal starting place. Amazon literally can’t get enough products in at the moment, and welcome 3rd party sellers like ourselves on their platform. This isn’t hype, just the hard facts from Amazon themselves.
My thoughts as a seller
Selling on Amazon is an excellent choice, even for beginners. To create a business with much lower capital than a traditional importing or logistics business. There’s a range of courses on the marketplace, most are great whilst some really need to lift their game. I highly recommend courses, as opposed to the ‘learn by error’ strategy, given the many steps, plus occasional pitfalls and challenges that lay ahead. You also don’t want to risk the capital you have, on making mistakes a long the way. Use the knowledge of someone that has been down the path before.
There is work involved here, plus you need start-up capital. Yes – you can enjoy most passive income only AFTER doing the upfront work. Just like when researching investment properties. You’ll do hundreds of hours of work, and eventually you’ll enjoy sitting in the shade in a few years from now. Do something today that your future self will thank you for. I’m glad that I did a course and started my Amazon business a few years ago, as today I have the freedom and lifestyle that I otherwise couldn’t have had.
I hope this post featuring the advantages of being an Amazon seller has been of value to you. For those with pending questions, you are most welcome to comment below and I’ll get in touch ASAP with a reply.
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