Sunday, August 24, 2014
How You Can Share in Amazon's Global Success and Make Money From Fulfillment by Amazon
Amazon is the sales marketplace that originally started out as a place to sell books. But in the last decade it's graduated to selling anything and everything... and become one of the biggest brands in our time. Not only that but it is a well known brand that allows - in fact encourages - entrepreneurs to share in their success by selling products right there on Amazon itself. Over the last couple of years Amazon have been working on another way you can generate some money in partnership with them. it is called Fulfillment by Amazon. How You Can Share in Amazon's Global success and make money from Fulfillment by Amazon Now to me Fulfillment by Amazon sounds like a really exciting way of making money in the 21st century Internet age. Because it is a business model whereby you can just focus on marketing and making sales. Then have Amazon do all the "hard" physical work of stocking, storing and shipping your products to your business friends for you. You know, Amazon are always something of a puzzle to me! They come out with the latest, cutting-edge business models and invest millions in making them successful. there's no doubt Amazon's brand image, ordering and distribution system are definitely without equal. Then they let any Tom, Dick or Harriet share them for free. Just why they would let ordinary people take advantage of all this for no up-front cost whatsoever, I don't know! It seems crazy, it doesn't seem to make sense at all, but they do it... and it is almost always a big success. So I thought it's high time we came back to Amazon and looked at exactly how Fulfillment by Amazon works, whether it is as good as it sounds... and whether it can earn cash for you. Amazon... did you know? * Amazon attracts 50 million consumers a month worldwide. * Amazon has been voted the third favourite UK retailer (after John Lewis and IKEA). * 1.3 million companies are selling on Amazon. * Amazon's business grew 18% last year... when most enteprise outfits were shrinking. So, what is Fulfillment by Amazon exactly? The basic concept of Fulfillment by Amazon, like all Amazon's concepts, is simple... although there are a lot of ins-and-outs which I'll look at later. With this service you send whatever products you want to sell (your inventory as Amazon like to call it) straight to Amazon. Whether it be books, CDs, clothing, computer accessories, toys, or whatever. They store it in their warehouse for you. Then when orders are received Amazon will pick, pack and ship the product straight to your business friends for you. You can use Fulfillment by Amazon whether you just need to sell a few things on Amazon as a sideline or want to sell thousands of products. You can use it if you are starting a new business or have an existing one that you need to change over to Fulfillment by Amazon. You can use Fulfillment by Amazon to send out things you are selling on Amazon itself or things you are selling elsewhere. This is what Amazon called Multi Channel Fulfillment. One more thing: if you start using Fulfillment by Amazon don't bother have everything fulfilled by Amazon. You can use it for some products and not others. Pros and cons So then, let's have a look at the pros and cons of Fulfillment by Amazon: Pro. You get to benefit from Amazon's reputation. Amazon is a brand that's trusted by clients worldwide. When they order something that is shipped by Amazon they know they will get it. And fast. And they know they can return it if they need to. This can create a massive difference when they are deciding whether to purchase from you. Pro. You can offer faster service. Amazon has state-of-the-art online order processing and fulfillment operations. Chances are they can get your products to your buyers faster than you can. Pro. Your products can be ranked higher on Amazon. With an Fulfillment by Amazon item your item shows up at the high point of the search more often than not. Products from non- Fulfillment by Amazon sellers are listed by total cost (product price plus shipping) but your items are listed by price only. So often you can price your items close to the lowest total price, perhaps be the first item in the billing and attract more buyers. Pro. Your clients can get free delivery. Using Fulfillment by Amazon will mean your business friends get free delivery on your products... using Super Saver Delivery or Amazon Prime. That can give you a big advantage over sellers who don't use Fulfillment by Amazon.