What is Amazon FBA?

Amazon FBA

What is Amazon FBA?

Amazon FBA is private labeling. It is similar to dropshipping but it’s not. At dropshipping, you just sell a product that is in a different location and you get paid for it. Items are shipped by the manufacturer or middleman and you don’t have to worry about that.

And what is private labeling? It is basically where you put your logo on a product and then call it your own.

How to start with Amazon FBA?

  1. The first thing that you must do with Amazon FBA is to find your profitable product on Amazon. That is a product that is in the market, a product that’s on Amazon that has demand. The product that people want to buy so it will generate revenue for you. You find profitable products by using product research tools. There are many different product research tolls. One of the best if not the best is called Jungle Scout.
  2. Once you find your profitable product, then the second thing you do is to find a supplier. That is your manufacturer to wholesale your products. The best way to contact suppliers is through a website called Alibaba, and you find a supplier that can manufacture the profitable product that you just found.
  3. Once you find a supplier that you could manufacture your products from, you send that product to an Amazon Fulfillment Center. We recommend you start with a low number of units. 250 to 300 for example.
  4. Amazon will pack, fulfill, and ship all your products for you when orders come in. So you don’t ever have to see your product. Unless when you get your sample for quality check. Amazon

Is Amazon FBA better than dropshipping?

What makes Amazon FBA so powerful is because unlike dropshipping where you have to spend money and spent time finding a niche that is doing well. With Amazon FBA you don’t have to test anything because it’s already a profitable product. You don’t have to worry about testing and you don’t have to worry about driving traffic to your store because Amazon already has all the traffic for you. You are basically just selling on their marketplace. So all you do is find products that are doing well and then put your logo on them and send them to Amazon.

Rating
Amount of work required: 2/5
Starting capital: 5/5
Potential earnings: 5/5
What is Amazon FBA?

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