Amazon sold and delivered over 80 Billion Dollars worth of product in the last four quarters of business. Nearly half of that amount was product provided by independent businesses.
No Sourcing Just Selling
What this means is that Amazon did not source those products. It was provided by individual retailers, manufacturers, distributors, wholesalers, and even people working from home.
The majority of those sales were made through the Amazon FBA program. This is where Amazon accepts inventory into their warehouse(s) from individuals and companies.
Amazon does not buy this inventory, they just stock in in their facilities, and whenever someone makes a purchase of that product through Amazon’s website they then process the payment and ship the goods to the customer.
Should You Be Selling On Amazon?
Many companies start out just by listing their product(s) on the Amazon website. Anyone can do that and Amazon charges just $1/month for that listing. A lot of these companies make a decent amount of sales this way, but they are missing out on one big thing that Amazon provides.
Fulfillment By Amazon
Fulfillment By Amazon (or Amazon FBA) is just like it sounds. Amazon fulfills the order, they also handle customer service, returns, and more. (they’ll even do some of your product packaging for instance).
Big Benefits with Amazon Prime
The biggest benefit of having your product(s) in an Amazon warehouse is that this will qualify that product for Amazon Prime.
Amazon Prime is a service that they offer for $99/year. If you are a Prime member you get all kinds of benefits with your membership like free movies, music, etc., but you also get 2 Day Free Shipping on most everything you buy on Amazon and people love it! (I know I do)
Sell Your Products For More?
Many times you can sell your products for more money on Amazon than you are getting at retail right now.
This is probably because people are changing their buying habits. Maybe you’ve seen this in your business.
If I can order something on Amazon and have it delivered right to my home in two days instead of making a trip to town, I am often happy to pay a couple of bucks extra for that service – and I am sure many other people are as well judging by the growth of the Amazon Prime Membership Program.
So… Should You Be Selling Your Product(s) Via Amazon Prime?
There’s a lot to think about (and learn) whenever you venture into a new sales channel – that’s why we started our Amazon FBA Consulting program. We do a free (or low cost) analysis of what you have for sale and tell you how much of that product you could be selling on Amazon.
If we decide to work together we’ll then help you get your product(s) listed on Amazon, inventory into the Amazon warehouses, and then promote your products in a way that helps them rise in the Search Results on Amazon.
Obviously it helps when you show up on the first page of Amazon’s search for your product’s keywords – that’s where the money is.
We look forward to working with you.
Kurt Simula – Mad Progress Marketing