If you’re just getting started as an Amazon seller, the first thing you’re probably wondering is exactly how to sell on Amazon. What are the different methods? What’s the process? And how do you know which way is best?
There’s so much information out there that it can be hard for Amazon beginners to figure out how to start. So today, I want to share our preferred way for selling things on Amazon: private label combined with Amazon FBA. While there are other methods out there, we believe this is the very best way to sell on Amazon.
What is Amazon private label?
I’ve talked in depth about how to find a product to sell on Amazon, but the basic idea behind Amazon private label is that you find your own product and sell it under your brand name, rather than selling a brand that already exists in the marketplace.
What is Amazon FBA?
In a nutshell, FBA means “fulfilled by Amazon.” Here’s what that looks like for you as a seller and the benefits of selling on Amazon with FBA:
1) Send your product to Amazon warehouse.
This saves you so much time and money because you don’t need to worry about finding storage space for your products–they’ll be sitting in Amazon’s warehouses. You simply send your products to Amazon, and they redistribute them to all their warehouses throughout the country, ready for Amazon Prime shipping.
2) Amazon fulfills the orders.
Amazon handles the fulfillment of orders on your products, from packing and shipping to reporting and inventory management. They take care of everything to make sure that from the time the order comes through, it gets shipped out quickly and goes to the right place.
3) Amazon handles customer service, including returns.
When a customer has an issue with an order, they’ll connect with Amazon. Again, this saves you valuable time so you can handle other aspects of your business.
4) Preferred status and more visibility.
Amazon gives your FBA listings preferred status: your products will be Amazon Prime eligible, and they’ll also be listed as “fulfilled by Amazon.” Since customers can sort their searches to see only items that are prime eligible, this increases visibility on your items.
5) Get paid from Amazon.
Every two weeks, Amazon distributes the net sum of your sales minus the fulfillment and marketing fees to you.
Since the entire process is handled by Amazon, you have the potential of scaling your business very large without having a large staff. It’s possible to scale to a $1 million+ business with just a couple of people by selling through Amazon FBA.
There are other ways to sell on Amazon that are doable, and some people get their toes wet doing things like retail arbitrage. But if you want to build a stable income, offer a quality product, and potentially scale to a large size, we highly recommend leveraging the power of selling products through private label and Amazon FBA.