How to Sell Your Product with Fulfillment by Amazon
Amazon’s Fulfillment by Amazon program (FBA) is a model that continues to grow in popularity. The model is similar to a traditional Ecommerce business but Amazon does the hard work for you. Using this model you are able to store you products at an Amazon warehouse and they pick, pack, and ship the items for you. This allows small businesses to bypass managing a warehouse space and just focus on sales and marketing. Additionally, Amazon will now allow a business to build its brand, website and marketing campaigns through private labeling.
If this sounds like a deal, you’re right. So here is our guide on how to use the FBA model by Amazon.
Selling Products with Fulfillment by Amazon
I’m going to go out on a limb and assume your distribution network and customer base is not quite at the level Amazon’s is. Don’t worry, in time you could get there too. So what the FBA model allows you to do, is leverage Amazon’s network and basically outsource your logistics and order fulfillment to them. This creates a huge opportunity for entrepreneurs.
Some business owners would say that logistics and order filling is the most complex part of selling online. With FBA, businesses are able to focus more on customer acquisition, opportunity and production rather than logistical challenges. It also allows businesses to manage inventory more efficiently. With FBA all you need to do is ship your products to Amazon and they do the rest. They store your inventory for you so you don’t need to be constantly managing your stock or product listings.
Getting Started with the Amazon Fulfillment Model
If selling through Amazon’s FBA model sounds right up your alley then you will need an account to get started. The process is pretty straight forward. Go to Amazon’s website and at the bottom of the page you will see a link that says “Sell on Amazon” under a header that says “make Money with Us”. Clink that link and you are on your way.
Continue your sign up process here and either proceed as an “individual” or “professional”. Selling as an individual allows you to avoid the monthly fee. However if you are trying to build your business through Amazon over a long period of time then you should go with the $39.99/month professional subscription.
Amazon Fulfillment & Private Labeling
If you are building a business through the FBA model then most suggest using a private label. This allows you to apply a brand or label on your products being sold through Amazon. Most businesses do want their product to be branded so this is generally the most popular route.
This is the part that Amazon can not do for you. It is important to research your competition on Amazon and find your unique opportunities. Similar to selling your product elsewhere, you will need an ideal target market and a plan to reach that audience. Additionally, you will also need capital and the ability to stock your product. Yes, Amazon takes care of storing, packaging and shipping, but you will still need capital to order a quantity of products that will cover your projected sales. So similar to selling a product yourself, you will need capital and a reliable supplier to get your products to market.
Private labeling also gives you the flexibility to build a brand and a website around your product. This allows for greater flexibility of your brand. You are able to market your product through mediums other than Amazon and create a marketing plan that will lead you to success.
Using Amazon Fulfillment to Jump-Start Growth
- Stick with it
Getting your product in front of your ideal audience will not happen overnight no matter where you sell it. Amazon is no different. It can take time for your marketing plan and brand to develop and make sales.
- Use a Marketing Plan
In many ways selling on Amazon is no different than selling from your own Ecommerce store. You will still need a well-crafted marketing plan to draw customers in. Amazon just allows you more time to focus on that by taking care of the logistics.
- Increase Offerings
The more products you sell, the less you will have to rely on one product for your success. Part of growth is the ability to expand your market and offer products that appeal to more consumers.
Some Risks & Benefits of Using Amazon Fulfillment
Selling on Amazon is not always easy. Amazon has created a vast marketplace where sellers compete fiercely to sell their product. Unless your product is completely unique then there is more than likely someone selling something similar. This does not mean you should abandon your idea. It simply means you need to compete well enough through pricing and marketing to outsell your competition. Product research is key in determining how and what your competition is doing to sell their products and how you can do better.
Additionally, you may have to be analytical and have a good plan for growth. Paying close attention to the Amazon marketplace analytics can help you determine who is buying your products and how you can cater to that market. You should also keep a close eye on your competition to see how their sales are in comparison with your own. Growth can be slow through Amazon but being analytical and examining your market can help you.
With that being said, selling Amazon can help you grow your business by letting you take advantage of their immense distribution and logistical network. Doing this allows more time for you to focus on your brand and marketing. However it still takes time and effort to beat your competition and run a successful company. It is a great way to sell your products and can help your business get on its feet with less hassle.