How To Make $10,000 Plus Per Month With Amazon FBA
Amazon FBA (Fulfilment By Amazon) is a business opportunity provided by Amazon to encourage
business-owners to list their products in its marketplace. The model works by Amazon providing
users with the ability to send their products to its warehouse, and having them "fulfilled" by
the retail giant (it sends them out) upon successful purchase.
The reason why Amazon would do this is partly to get free niche products which are both
unique and valuable (you own the products - they just ship them for you), and partly to make
use of their massive infrastructure (which they would be paying for anyway).
It also adds to their offering as a business, as it gives them an even more diverse array
of products to add to their portfolio (which is pretty much their core competitive advantage).
The important thing to consider about the "FBA" model is that it is indicative of the
new "digital" business culture that seems to have become even more prevalent after the 2008
crash. Rather than keeping large amounts of stock, overheads and a large team... companies
have taken to the Internet and social media to find buyers and create lean enterprises.
Gone are the days when distributors determined the fate of products. Now, new businesses,
entrepreneurs and everyday people are able to create $10,000 plus a month income streams without
even having to own any land. All the infrastructure, marketing and fulfilment is handled by a
completely independent company (Amazon) - to which you just do the work of sourcing a successful product.
To determine if you'd like to gain advantage from this method of investment, I've created
this tutorial to explain the process of utilizing Amazon FBA. Rather than trying to get by
on scraps from a local market, the new "digital" realm with all its promise is one of the best
ways to get your foot in the door of the new world of enterprise.
How It Works
All businesses work in the same way - buy/build a product, offer the product to a market and
any "profit" you're able to make can either be used to live off, or reinvest into more/better
products. The problem for most people is two-fold: 1. they have no product 2. they have no access
to a market.
Whilst both are legitimate problems - which would have been a significant drawback in a
time without the "digital" medium - times have moved on to the point that barriers-to-entry
are so low that you only really need to be able to invest several $1,000 to have the opportunity
of selling to a global audience.
And despite the fact that the "Amazon" opportunity has existed for almost 10 years now
(anyone can list products in its marketplace), the "FBA" model (which is truly hands-off) has
only started to become popular in the past 24 months-or-so.
If you didn't go to business school, to briefly explain how to run a "successful" business,
you basically need to be able provide a product/service to a large audience. You'd typically
aim for around 30 percent net profit margin (after COGS and advertising costs). How you do this
is up to you - the key is to buy low, sell high.
Now, just because the "digital" realm is large doesn't mean it's devoid of the way in which
"markets" typically work. Competition is obviously a major force, as is the idea that because
something is "easy", it can be replicated relatively simply by others (leading to an erosion
of your profits).
Selling on Amazon typically works by providing access to products which people either don't
have access to locally, or are able to obtain locally but with major restrictions (such as
color/size issues), or with problems in reliability of supply. In other words, whilst the
Amazon marketplace is vast - don't think you can outwit supply/demand.
The real trick with "digital" businesses is to provide access to unique products (typically
made by yourself or your company) which are only available through you. These products have
to be focused on providing a solution that most people have no idea about, and thus makes the
proposition of buying it through the Internet legitimate.
Obviously, creating a "unique" product is 1,000 times easier said-than-done - the trick with
it is to work on solutions to your own problems. Work towards sharpening a skillset, which
you're able to apply to a wider audience, from which you'll be able to identify "products"
which can be created and offered as a means to simplify/solve problems you've experienced yourself.