![]() |
|
Fulfillment by Amazon - Better Business Model than Shopify? - Printable Version +- Hack Forums (https://hackforums.net) +-- Forum: Money (https://hackforums.net/forumdisplay.php?fid=241) +--- Forum: Monetizing Techniques (https://hackforums.net/forumdisplay.php?fid=120) +--- Thread: Fulfillment by Amazon - Better Business Model than Shopify? (/showthread.php?tid=5910508) |
Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 21, 2018 Amazon FBA (Fulfillment by Amazon) A better business model than Shopify dropshipping? By mvmt Introduction Amazon is currently standing at the largest online retailer in the world and by the end of this year, Amazon alone will be responsible for over 50% of the entire e-commerce market in the United States. The craziest part is that they are not even close to being done growing yet. Within the past few years, Amazon has acquired several major companies such as Whole Foods, Ring, Twitch, and dozens more. With the infrastructure they have built and are still building, Amazon is very quickly taking over just about every industry they can get their hands on. What is Amazon FBA? Amazon FBA (Fulfillment by Amazon) is a service that was opened back in 2006, allowing small business owners to utilize Amazon's order fulfillment and customer service infrastructure. Today, it has evolved into one of the fastest growing business models for small businesses, entrepreneurs, and e-commerce businesses. Amazon FBA allows you to ship your products directly to Amazon's own fulfillment centers placed throughout the country and have your products listed for sale on Amazon for anyone to buy. When a customer purchases your item, Amazon will automatically pack and ship your item directly to your customer. Since you are utilizing Amazon's fulfillment centers, your item will be a "Prime" item which means free 2-day shipping anywhere in the US. Not only do they handle your inventory management, Amazon will also handle all customer service for you. Now I'm sure you are asking, how much does all this cost? While there are no upfront costs other than a Professional seller account ($39.99 per month), there are some fees that come along with selling on Amazon. Each sale is subject to: referral fees (% of the sale, usually 10-15% depending on category), fulfillment fee (based on weight), and monthly storage fees (based on size). While it may seem like a lot, the fees you incur are well worth the benefits and exposure your business is getting. For an in-depth look at Amazon's fee structure, click here. What makes Amazon better than other e-commerce business models? In my opinion (based on personal experience), Amazon FBA is a much better business model than other popular e-comm models like Shopify/eBay dropshipping, affiliate marketing, etc. Below are the main reasons I feel this way based on my experience.
Is Amazon FBA for established companies or can anyone sell? This is a fairly common assumption people make when they are first made aware of being able to sell on Amazon. They assume that they must have some large retail brand or go through an extensive approval process in order to sell on Amazon, however this is far from the truth. Amazon makes it pretty easy for just about anyone to sell on Amazon. All you need are products to sell and to live in one of the countries supported by Amazon. Miscellaneous resources and information Fulfillment by Amazon homepage Fulfillment by Amazon Revenue Calculator If you have questions on how to get started selling through Amazon FBA, feel free to shoot me a PM. I'd love to help. If you have any suggestions as to what else I can add to this thread to make it more informative, leave a post and I'll be glad to make room for it. I want to cover as much as I can about the business model. RE: Fulfillment by Amazon - Better Business Model than Shopify? - Meow - Nov 21, 2018 This is very well written an in-depth. Thanks for writing this Mvmt! RE: Fulfillment by Amazon - Better Business Model than Shopify? - Bαker - Nov 21, 2018 MVMT knows his shit with FBA, This thread is a prime image of his knowledge of wealth. Booked marked this for when I plan on moving into the FBA realm over Shopify. RE: Fulfillment by Amazon - Better Business Model than Shopify? - THE NORTH FACE - Nov 21, 2018 A great read for anyone thinking about getting into selling on Amazonš¤ RE: Fulfillment by Amazon - Better Business Model than Shopify? - Dan. - Nov 21, 2018 Quality post! Wholeheartedly agree with the subject as well.. Dropshipping is fine on Shopify/ect, but there's no reason not to do both. RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 22, 2018 I appreciate the reviews guys <3 RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 23, 2018 If anyone has suggestions on how to improve this thread, I'm open to all opinions. RE: Fulfillment by Amazon - Better Business Model than Shopify? - Junior. - Nov 23, 2018 Thank you very much for this information I was in search for it. RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 24, 2018 (Nov 23, 2018 07:26 PM)Junior. Wrote: Thank you very much for this information I was in search for it. Glad you found it helpful man :) RE: Fulfillment by Amazon - Better Business Model than Shopify? - Royac - Nov 26, 2018 Great post man! Amazon is the way to start! RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 29, 2018 (Nov 26, 2018 12:29 AM)Royac Wrote: Great post man! Thanks man I appreciate it! RE: Fulfillment by Amazon - Better Business Model than Shopify? - Zoomers - Nov 29, 2018 Thank you for this detailed post. Is it possible to dropship items ? RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Nov 29, 2018 (Nov 29, 2018 08:32 PM)wrathog Wrote: Thank you for this detailed post. Is it possible to dropship items ? Yes it is possible to dropship, however you obviously won't get the benefits of selling through FBA since you aren't holding inventory. RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Dec 4, 2018 Keeping this thread alive for those who might find it interesting. RE: Fulfillment by Amazon - Better Business Model than Shopify? - mvmt - Dec 8, 2018 If anyone has suggestions on how I can improve this thread, feel free to let me know! |