Whether you are looking to create a business that can replace your full-time income or you are simply looking for something to earn extra on the side, Amazon FBA presents an incredible opportunity. In this article, we will be going over some of the reasons you should consider starting an Amazon FBA business.
Reasons To Consider Starting An Amazon FBA Business:
1. Low Overhead.
Unlike just about any other business, you will be able to start a complete Amazon FBA business with little to no overhead. In fact, professional sellers only have to pay $39.99 per month to maintain a pro merchant account. This is really the only fixed overhead cost associated with running an Amazon business. You simply cannot find another business model that offers such low overhead and upfront costs.
2. No Customer Service.
Amazon takes control over the fulfillment of the products that you are selling. Along with this, they even handle any customer service interactions related to the sale. Because of this, it is one of the best businesses that you can invest in because it allows you to focus on growing your business. Instead of getting bogged down in the details, you will be able to focus on various aspects that can effectively grow your business. If you were to sell on virtually any other marketplace, not only would you be responsible for the fulfillment aspect, but you will also be responsible for the customer service and handling customer interactions.
3. Amazon Drives Traffic.
More so than anything, Amazon presents such an incredible opportunity for sellers that are looking to gain sales because Amazon drives so much traffic. Because the Amazon marketplace is the biggest marketplace in the world, you are going to gain access to millions of customers by simply listing your products on it. Also, having your products shipped by Amazon directly can increase your sales conversions of the traffic you do get from Amazon. You simply couldn’t drive the kind of organic traffic that you would be able to get directly from Amazon with other stores or marketplaces.
4. Discounted Shipping.
If you were to sell and ship items on your own on various other marketplaces, you would be responsible for the storage and shipping of said products. Whereas, Amazon charges a minimal fee for storage and they provide you with serious discounts on your shipping. Because Amazon has such economies of scale, you are able to leverage their contracts with major shipping carriers which can cut down the total cost of your shipping to a fraction of what you would pay on your own. Getting discounted shipping can really help drive down your total costs and maximize your per-item profit margin.
Overall, there are so many reasons to consider getting into the Amazon FBA business. Not only is the overhead extremely low, but the barrier to entry is just as low. Because of this, you can begin making money almost immediately after you begin selling on Amazon which cannot be said for a lot of other business opportunities.