Amazon is the sales marketplace that originally started out as a place to sell books. But in the last decade it’s graduated to selling anything and everything… and become one of the biggest brands in the world. Not only that but it’s a famous brand that allows – in fact encourages – entrepreneurs to share in their success by selling products right there on Amazon itself.
Over the last couple of years Amazon have been working on another way you can make money in partnership with them. It’s called Fulfillment by Amazon.
How You Can Share in Amazon’s Global Success and Make Money from Fulfillment by Amazon
Now to me Fulfillment by Amazon sounds like a really exciting way of making money in the 21st century Internet age. Because it is a business model whereby you can just focus on marketing and making sales. Then have Amazon do all the “hard” physical work of stocking, storing and shipping your products to your customers for you.
You know, Amazon are always something of a puzzle to me! They come out with the latest, cutting-edge business models and invest millions in making them successful. There’s no doubt Amazon’s brand image, ordering and distribution systems are absolutely without equal.
Then they let any Tom, Dick or Harriet share them for free. Just why they would let ordinary people take advantage of all this for no up-front cost whatsoever, I don’t know! It seems crazy, it doesn’t seem to make sense at all, but they do it… and it’s almost always a big success.
So I thought it’s high time we came back to Amazon and looked at exactly how Fulfillment by Amazon works, whether it is as good as it sounds… and whether it can make some money for you.
Amazon… did you know?
* Amazon attracts 50 million consumers a month worldwide.
* Amazon has been voted the third favourite UK retailer (after John Lewis and IKEA).
* 1.3 million businesses are selling on Amazon.
* Amazon’s business grew 18% last year… when most businesses were shrinking.
So, what is Fulfillment by Amazon exactly?
The basic concept of Fulfillment by Amazon, like all Amazon’s concepts, is simple… although there are a lot of ins-and-outs which I’ll look at later. With this service you send whatever products you want to sell (your inventory as Amazon like to call it) directly to Amazon. Whether it be books, CDs, clothing, computer accessories, toys, or whatever. They store it in their warehouse for you. Then when orders are received Amazon will pick, pack and ship the product directly to your customers for you.
You can use Fulfillment by Amazon whether you just want to sell a few things on Amazon as a sideline or want to sell thousands of products. You can use it if you are starting a new business or have an existing one that you want to change over to Fulfillment by Amazon.
You can use Fulfillment by Amazon to send out things you are selling on Amazon itself or things you are selling elsewhere. This is what Amazon called Multi Channel Fulfillment. One more thing: if you start using Fulfillment by Amazon you don’t have to have everything fulfilled by Amazon. You can use it for some products and not others.
Pros and cons
So then, let’s have a look at the pros and cons of Fulfillment by Amazon:
Pro. You get to benefit from Amazon’s reputation. Amazon is a brand that’s trusted by customers worldwide. When they order something that is shipped by Amazon they know they will get it. And fast. And they know they can return it if they want to. This can make a massive difference when they are deciding whether to buy from you. Should you adored this short article as well as you wish to obtain more information concerning how to sell on amazon prime generously pay a visit to the web site.
Pro. You can offer faster service. Amazon has state-of-the-art online order processing and fulfillment operations. Chances are they can get your products to your buyers faster than you can.
Pro. Your products can be ranked higher on Amazon. With an Fulfillment by Amazon item your item shows up at the top of the search more often than not. Products from non- Fulfillment by Amazon sellers are listed by total cost (product price plus shipping) but your items are listed by price only. So often you can price your items close to the lowest total price, maybe be the first item in the list and attract more buyers.