WHAT IS FULFILLMENT BY AMAZON (FBA)?
Fulfillment by Amazon is a service offered by Amazon as a means for third-party sellers to automate their order fulfillment and shipping services. With FBA, you send your products to Amazon's fulfillment centers and they will take care of picking, packing, shipping, and providing customer service for those products.
FBA Pros:
- Sellers are able to reduce costs because they aren't leasing warehouse space
- Easy access to Amazon Prime customers
- Fulfillment and distribution services are managed by Amazon reducing overhead
FBA Cons:
- Amazon services may be cost-prohibitive
- Lack of control
- Packaging requirements
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WHAT IS FULFILLMENT BY MERCHANT (FBM)?
Fulfillment by Merchant is when the seller is in control of his entire handling and shipping process. Instead of paying a service fee and shipping inventory to Amazon to handle, the seller uses his or her own resources and sends the items directly to the buyer. By choosing FBM, a seller takes complete control of the entire process, from purchasing, to shipping and receiving
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WHAT IS DROPSHIPPING?
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.
WHAT IS THE WHOLESALE BUSINESS MODEL?
Simply, the wholesale business model is when you buy bulk branded products from another manufacturer to resell to your customers.
HOW WHOLESALE WORKS ON AMAZON
There are some high-level steps that include becoming an active seller, finding the products to sell, creating a relationship with the brand’s manufacturer, finding the right price, promoting the products, and managing the inventory, shipping, returns and customer service