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FBA or Fulfillment by Amazon is a rapidly growing business model for generating income online that I have spent some considerable time researching recently. I started with the usual blitz of the forums and then enrolled on a Udemy course.

This is a great introduction and provides more than enough content to get you started. Amazon itself provides good informational (but basic) videos but because they are promotional in nature, they don't cover all the angles and present a very idealized view of the processes.

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Fulfillment by Amazon (FBA) is a service offered by Amazon at a very affordable price for those wishing to build a business based on buying physical products at the lowest price possible and selling at a high enough price to pay the purchase price for the product plus any costs and make a profit. This is sometimes known as arbitrage and has been the basis of retailing since time began but with the opportunities now provided by the internet it has now become accessible to everyone.

A potential disadvantage to the arbitrage business model though is that you will eventually want to scale it up if you wish to generate enough income to replace the day job and this is where it could become a little problematic. Scaling up means more inventory, finding storage for the increasing stock levels (warehousing), hiring staff to physically manage the products unpacking (inventory coming in), labeling, packing (products going out), shipping, handling returns, dealing with customers etc.

But there is another way, and this is where Fulfillment by Amazon comes in. It will do it all for you! They provide the warehousing, handling, picking labeling, packing and shipping to the customer. Leaving you to research the products you wish to sell, source the products, ship them to Amazon and list them on Amazon.Best of all is that with this business model you can start small and grow bigger. FBA is very affordable and you won't need a big capital outlay to get going. Many people start by literally buying just a few products from a discount store, thrift shop or garage sale and grow from there. Of course if you want to start bigger, you can. Just remember to always test your markets first demand, pricing, competition, supply etc.

There are thousands of international suppliers and many of them will sell you a handful of items which will enable you to test the market. Once you've found a product that has demand and is profitable, you can order them in bulk and get them shipped directly to Amazon.

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Posted in Transportation/Automotive Post Date 11/18/2016


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