If you’re looking to sell products online, Amazon is definitely a great place to start. In fact, there are two ways to sell on Amazon – FBA and FBM. In this blog post, I’ll be discussing my experience with Amazon FBA in the UK, and how it compares to FBM.
First things first, let’s talk about what Amazon FBA actually is. FBA stands for “Fulfillment by Amazon”. Essentially, it’s a service that Amazon offers to sellers, where they can store their products in Amazon’s warehouses. When a customer orders a product, Amazon will pick, pack, and ship the item directly to the customer on behalf of the seller. This means that the seller doesn’t have to worry about any of the logistical challenges of fulfilling orders.
On the other hand, FBM stands for “Fulfillment by Merchant”. This means that the seller is responsible for fulfilling all orders themselves. This includes storing inventory, packaging products, and shipping orders. While FBM can be a good option for some sellers, it can be more time-consuming and challenging to manage than FBA.
Setting up an Amazon FBA account does take some time and effort, but it’s a fairly simple process. You just need to be patient and follow the steps provided by Amazon. One important thing to note is that there are two types of accounts – Individual and Professional. With an Individual account, you pay a fee for each item sold, whereas with a Professional account, you pay a monthly fee but have access to more features and tools.
Once you’ve set up your account, the next step is to source your products. There are a few ways to do this, including online arbitrage, retail arbitrage, and wholesale. With online arbitrage, you can purchase products from online retailers at a discounted price and then resell them on Amazon. With retail arbitrage, you can find discounted products in physical stores and resell them on Amazon. With wholesale, you can source products directly from manufacturers and create your own brand, but this requires more effort and a completely new listing on Amazon.
Here are some advantages and disadvantages of each sourcing method:
Online Arbitrage
- Advantages: Wide variety of products, easy to compare prices, can be done from home.
- Disadvantages: High competition, potential for fraudulent sellers, need to factor in shipping costs.
Retail Arbitrage
- Advantages: Opportunity to find unique products, ability to inspect products in person, can be done quickly.
- Disadvantages: Limited stock, need to physically travel to stores, potential for damaged products.
Wholesale
- Advantages: Potential for higher profits, ability to create your own brand, less competition.
- Disadvantages: Need to invest in inventory upfront, more complex process, requires branding and marketing efforts.
If you’re interested in seeing my full steps for online or retail arbitrage, be sure to check out the video linked at the top of this post. Additionally, if you want to see my profit/loss numbers, the video covers that as well.
In conclusion, Amazon FBA in the UK is a great opportunity for anyone looking to sell products online. While it does take some time to set up and get approved, the process is straightforward and the benefits are well worth it. Whether you choose to source your products through online arbitrage, retail arbitrage, or wholesale, there are plenty of opportunities to make a profit and grow your business.
