Ok, so you have decided to sell on FBA. Congratulations on realizing the opportunity of this lifetime. Once you are up and running, you will soon breeze through the ranks of a novice online seller operating out of their spare bedroom, to a well-oiled retail business browsing listings for warehouse space. It goes quick. It goes quick for many reasons but the big one is that most of the stumbling blocks that small start-ups historically endured, are drastically minimized or even obsolete. I'm talking about things like inventory and data management, logistics, marketing, branding, website development, and market analysis-to name a mere few. The Amazon FBA software compiles these and so many other tools at the immediate disposal of the business owner. Gone are the days of immense growing pains and failure-ridden stories of would-be retailers and entrepreneurs alike. It's almost as if we landed on the moon again!
With FBA, these hurtles are wrestled and conquered by some of the smartest people onboard the Amazon freight train-non of which you employ however. What does all this equate to? It allows you to sell your products to millions of Amazon customers while leveraging their world-class fulfillment network. It allows you the opportunity to focus on other vital aspects of your business, namely, those aspects that allow you to grow and scale. Another huge advantage FBA sellers can leverage is the Prime customer. All FBA sellers' products are Prime eligible, mainly because Amazon is already fulfilling these products themselves. As you know, that Prime badge can make product sales explosive, especially when concerning Subscribe and Save, seasonal traffic, holidays, and other special events or promotions. This is a turn-key feature when selling through FBA.
The biggest hurdle remains sourcing. Talk to any FBA seller and their eyes will thin out as they voice on-going frustration with finding quality product on a consistent basis. I'm referring to products that are desired by the Amazon customer base and sourced well below wholesale pricing. This is a tough gig. Mainstream wholesalers are not cheap and margins are typically so razor-thin that the FBA model is not even close to being worthy of tying up investment capital, especially when just starting out in this rodeo. A quick stroll around the wholesale block will, at best, yield several companies selling the most obscure, closed-out, products that have been unlucky enough to survive a long liquidated history of one company pawning it off to the next. Very seldom is any of it even close to being Amazon quality. I'm not talking about the condition of the product here, but rather the "sales" condition. After all, someone has to "want to buy it." This is what sell-through is all about. This is one of the first lessons an FBA seller will learn.
As an FBA reseller, sourcing is tough and becoming even tougher. As the amazon platform continues to grow, more and more wholesale companies are demanding more from the wholesale dollar. In other words, if someone doesn't want to pay their price, someone else will. And they are right! When you combine all this with the increasing fee structure of FBA, it becomes a very strict formula when considering the buy or no-buy decision. Where do resellers turn to? It's imperative that a reputable wholesaler who understands this be sought out. This will aid in price stabilization, product quality consistency, customer guidance, and supply chain efficiency for the online seller. It's about profit and the bottom line! This is how businesses think. And when you understand this, the better off you will be.