Ecommerce businesses and online marketplaces are growing rapidly in the USA and all over the world and taking over retail businesses. While it sounds terrible for people who are working at these places or business owners, it also has some positive effects. Instead it's better to follow the fashion instead of being left behind.There will always be innovative ideas for new products and services so why not come up with a product that everyone may fall in love with. If you are thinking that it costs too much money to get your idea into real life, I will suggest to rethink this. The World is getting smaller and having so much competition in almost every industry is helping people receive cheaper and more quality services or products. There are thousands of people who are making a living off of selling online while working at home and so many others creating additional income by selling online as a part-time job.
Have you thought or asked these questions to yourself?
1- I have an idea but I don't know how much it would cost or I don't know who to contact?
2- Even if I have some capital to get my products manufactured, I can't afford to sign a lease and open a store or a warehouse?
3- I haven't done this before and seems very hard.
If you are thinking what I mentioned above, you should explore your opportunities. Especially if you believe that you have a great idea! Believe it or not your idea can be more valuable than some established businesses.
Even though there are tons of different places where you can sell your products, when it comes to volume and especially if you are a starter company, then there is one way to start selling online. Sell on Amazon!
According to data compiled by Forrester Research, Amazon.com generated about 60% of total U.S. online sales growth in 2015, far outpacing the marketplace competition.
Can you imagine how many items were purchased from third party Amazon sellers only on Cyber Monday 2016? 28 Million! This is a huge increase comparing to the previous year which was 23 million. If this many products are being sold in one day from third party sellers, do you still believe you have no chance to get your slice from that pie?
If you have a product idea, you can always Google to find manufacturers related to your category. For the last 10 years Alibaba has become like Amazon for manufacturers. You can read my other article to learn about how to source products from Alibaba.
Okay now you are about to manufacture your products but how are you going to receive your shipment, store and ship your items?
That's where Amazon's magic service for online retailers will help you. Fulfillment by Amazon for short FBA. Amazon FBA service will store your items, pick, pack, and ship your orders directly to your customers and will also provide customer service for any question related to shipping and returning. So basically, Amazon is handling all of the headache and leaving you plenty of time for sourcing and marketing.
What if I don't have a place to accept shipments or prepare the items to ship them to Amazon?
If you are planning to start selling at home or already running your business in a small office, then look no further. There are a number of reputable, FBA prep and ship services specifically designed for Amazon FBA merchants. Amazon drives the quality traffic with millions of buyers. According to recent research 44% of Americans are directly going to Amazon.com for searching the product they need. That's almost 1 out of 2 people. Amazon also takes pride in the fact that they offer an excellent customer experience which is one of the primary reasons clients buy from Amazon time and time again. The risk of sending your product straight to the buyer can easily outweigh your business potential for savings. Actually, what you may consider to be saving in prep fees, could be what you spend in refunds to buyers or in reputation. Not only will Amazon offer your items as Amazon Prime, it will also save you tons of money in shipping fees, customer service,and potential refunds for delivery issues since Amazon will be responsible for all of these.Using Amazon FBA and outsourcing shipment receiving and prep services has become one way to go for most businesses. Merchants can use FBA prep services to enhance their company’s productivity, while at the same time limiting unnecessary business expenses. This allows a business to focus on product purchasing, marketing, and expansion. FBA sellers play their part in ensuring your products arrive at the warehouse in 100% excellent condition. It also includes the retail packaging and the product itself. This is by understanding that having your product get to the buyer and surpassing the buyer's expectations is key to receiving 5-Star feedback as well as growing reputation and your business. In fact, Amazon will destroy or return (your choice) items that don't meet their packaging & labeling specifications. Here is how It works. First, you source your products from your suppliers. Second, you have them ship to the FBA prep provider's warehouse. Third, you provide the service provider with your FBA shipment information. Once your items are received, they will check your shipment to verify quantity and condition. They will create multipacks or bundles, label and pack the products in order to suit Amazon's stringent specifications. This ensures that the risk of sending misrepresented or faulty products into your marketplace is eliminated. Lastly, once the shipment is processed and ready for shipment directly to Amazon's warehouses, an invoice will be sent to you. This invoice will need to be settled before your shipment is released to Amazon.
Will outsourcing help me to save money?
Of course YES!
Here is a simple calculation that I can think of at the moment.
Renting a 800-1200 sqf warehouse will cost you anywhere between $750-1400 depending on your location.
Warehouse Insurance $50 to $100. Utility Costs $80 to $150
Imagine you only need one person working for you. You will pay salary, workers compensation, payroll etc One person will cost you at least $1700 assuming you are not hiring a good quality workforce .
Shipping: Amazon will ship your products way cheaper than you can imagine. For example if you are living on the East Coast and your item is 2 lb, you will pay $8-$10 and Amazon will only charge you $4-4.50 and it will also be considered an Amazon Prime item.
The List can go on and on. Upfront cost starting online businesses without using Amazon FBA and outsourcing prep services may cost you thousands of dollars and won't actually pay you back because it will cost you more.
Conclusion: 1- Create something that people need