Sellers Planet
  • Home
  • Courses
  • Services
  • Software
  • Business
    • Amazon
      • Amazon PPC
      • Amazon SEO
      • Amazon Business
      • Editor’s Pick
    • Dropshipping
      • Product Sourcing
      • Shipping
      • How To’s
    • E-Commerce
      • Import
      • Google SEO
      • Google PPC
      • Social Media
      • Websites
      • Alt Marketplaces
  • Investment
  • Mindset
  • About
    • Privacy Policy
No Result
View All Result
Our YouTube
Sellers Planet
  • Home
  • Courses
  • Services
  • Software
  • Business
    • Amazon
      • Amazon PPC
      • Amazon SEO
      • Amazon Business
      • Editor’s Pick
    • Dropshipping
      • Product Sourcing
      • Shipping
      • How To’s
    • E-Commerce
      • Import
      • Google SEO
      • Google PPC
      • Social Media
      • Websites
      • Alt Marketplaces
  • Investment
  • Mindset
  • About
    • Privacy Policy
No Result
View All Result
Our YouTube
Sellers Planet
different ways to sell on amazon

different ways to sell on Amazon

Top Surprising Items Sold Online: You Won't Believe This is Actually Selling on Amazon

Grasping the Concepts of How to Add Listings on Amazon and Sell Them

Are There Different Ways to Sell on Amazon, or Does Everybody Follow the Same Blueprint?

548
SHARES
2.5k
VIEWS
Share on FacebookTwitterWhatsAppEmailLinkedInPinterest

Different Ways to Sell on Amazon: Are There Different Ways to Sell on Amazon, or Does Everybody Follow the Same Blueprint?

Blog Overview

Are you looking to sell on Amazon? If so, then this article is for you. We’ll discuss the different ways that people can sell on Amazon and how they do it. Some are easier than others, but all have their pros and cons. You’ll learn about Fulfillment by Merchant (FBM), Fulfillment by Amazon (FBA), Private Label, Wholesale, Retail Arbitrage, and more!

Table of Contents for Easy Reading

  • Different Ways to Sell on Amazon: Are There Different Ways to Sell on Amazon, or Does Everybody Follow the Same Blueprint?
    • Blog Overview
      • RelatedPosts
      • Approval for New Sellers on Amazon: How Long Does It Take?
      • Amazon Seller Permit Requirements: Things You Need To Know
      • How to Maximize Amazon Conversion
    • Different Ways to Sell on Amazon
    • Fulfilment by Merchant (FBM)
      • How Does FBM Work?
      • Benefits and Drawbacks Of Amazon FBM
    • Fulfilled by Amazon (FBA)
      • Benefits and Drawbacks Of Amazon FBA
    • Private Label
      • Benefits and Drawbacks Of Amazon Private Label
    • Retail Arbitrage
      • Benefits And Drawbacks Of Retail Arbitrage
    • Wholesale
      • Benefits And Drawbacks Of Wholesale
    • Frequently Asked Questions
      • What are the different ways to sell on Amazon?
      • Is it really worth it to sell on Amazon?
      • How do you compete with private label companies on Amazon?
    • Conclusion

By the end of this blog, you should decide which method works best for your business model or if there is a better way out there that we didn’t mention here today. Let’s dive in!

RelatedPosts

Approval for New Sellers on Amazon: How Long Does It Take?

Amazon Seller Permit Requirements: Things You Need To Know

How to Maximize Amazon Conversion

Different Ways to Sell on Amazon

Let’s start by differentiating the different ways that people sell on Amazon. 

Fulfilment by Merchant (FBM)

This is when you sell products in the traditional way that is not being fulfilled by Amazon. You’re directly sending your inventory to customers, just like any eCommerce website would do. FBM works excellent for some, but it can also be a big headache because of the amount of work involved in getting shipments ready and shipped out. The time commitment can eat away at your margins, especially if you have multiple orders to fulfil each day.

How Does FBM Work?

You list your product(s) on Amazon and give them their unique ASIN (Amazon Standard Identification Number). This helps them track individual products much more manageable. You set a selling price and a shipping price. Suppose you don’t charge for shipping, state that your product is free to ship. When somebody buys the product from Amazon, they give it to the customer just like an eCommerce website.

Benefits and Drawbacks Of Amazon FBM

The benefits are that you can make much more money selling FBM because there is no fulfilment fee. On the other hand, the downside of selling FBM is that you have to find your shipping carriers, deal with customer service issues much more often, and fulfil all orders yourself. This involves many different tasks that can eat up time spent better elsewhere.

Fulfilled by Amazon (FBA)

Unlike FBM, when somebody buys your product on Amazon, they won’t get it for at least a day or two. Instead, they will receive an email stating that their order has been received and Amazon themselves is fulfilling it. When this happens, the inventory goes to one of many Amazon warehouses, where it is then held until somebody makes an order. 

Amazon employees will then receive your shipment and fulfil the order for you, thus taking away all of the different tasks that come with FBM. When you’re selling FBA, Amazon will take care of everything from warehousing to shipping to customer service issues.

Benefits and Drawbacks Of Amazon FBA

The benefits are that there isn’t much work involved in running FBA. All you have to do is send your shipments over to Amazon and handle any problems that may arise later on down the road. This frees up a lot of time which can be spent elsewhere in your business model. The drawback is that they will cut from each sale, so you’ll earn less than if you were selling using the FBM method.

Private Label

This method of selling on Amazon revolves around creating your product and putting it up for sale. This usually means you’re going to create an original product from scratch, design a logo/brand name, and even take care of different marketing campaigns to help spread the word about your new product. It is much different than selling FBA or FBM because additional costs are associated with getting a private label company off the ground.

Benefits and Drawbacks Of Amazon Private Label

The benefits are that you have complete control over everything from manufacturing to marketing. You can design your product however you want. The drawback is the costs associated with creating a private label company. Tips to increase your chance of success, it would be best to reinvest certain earnings back into the company to make it grow faster than your competitors, who may decide not to do this.

Retail Arbitrage

Retail arbitrage is different from selling FBM, FBA, or private label because there’s no inventory involved with this. You will search for products in other stores at different prices and then buy them to resell on Amazon. This is basically like having your store that you can track everything on.

Benefits And Drawbacks Of Retail Arbitrage

The benefits are that it’s relatively simple and requires very few resources. The drawback is that you won’t earn very much money by doing it unless you have a good grasp of which items sell the best on Amazon before setting out on your journey. Some people also don’t like to work outside of their homes, so working around stores makes it difficult in that sense.    

Wholesale

Wholesale is different from other ways to sell on Amazon because there’s no direct contact with customers. Everything is done through various companies that already have their audience. This means that you won’t earn very much money unless you figure out how to increase profits by partnering with different companies or advertisers.

Benefits And Drawbacks Of Wholesale

The benefits are that you don’t have to work as hard for additional earnings because they will already be built in for each sale. The drawback is that you’ll need different partnerships and advancements to truly maximise profits, so it may take time before seeing any results. 

Of course, you would want to know when you’ll see if you’re really selling. You can read more here: Today’s Big Q: When will I Start Seeing Profit on Amazon

Frequently Asked Questions

What are the different ways to sell on Amazon?

Depending on your skillset, various resources, different experiences in the business, the different ways of selling on amazon can be broken down into FBM, FBA, Wholesale, Private Label, and Retail Arbitrage. Each one is different because they each have other cost structures. It is entirely up to you what method best suits you when starting your business on Amazon.

Is it really worth it to sell on Amazon?

It depends on different factors. The different ways to sell on Amazon are different for other people because they have various resources at their disposal.

How do you compete with private label companies on Amazon?

You either need to sell them more efficiently or increase the product’s value proposition. You can also find different ways to diversify your sales channels to make up for any losses because of the private label companies.

Conclusion

There are different ways to sell on Amazon, but they all generally involve various tasks and money-making techniques. Fulfilled by Amazon (FBA) is the most popular way of selling on Amazon because it is easy, free, and profitable. 

The private label takes a little more effort to get off the ground but offers complete control over your business model once you do. Retail arbitrage is worth considering if you’re looking for something different with different benefits. Wholesale takes a lot of time and effort but will get you the best possible margins. Regardless of which you choose, be sure to reinvest and diversify your income streams.

Previous Post

Top Surprising Items Sold Online: You Won’t Believe This is Actually Selling on Amazon

Next Post

Grasping the Concepts of How to Add Listings on Amazon and Sell Them

Recommended

how highly successful people think
Seller's Guides 2023

How Highly Successful People Think – You Can, Too

business failure stories
Seller's Guides 2023

Top 7 Shocking Business Failure Stories – History Talks

business mindset stories
Mindset

Business Mindset Stories – Top Story to Blow Your Mind

b2b marketing
Seller's Guides 2023

Complete Guide in B2B Marketing in 2023

Trending Now..

Currently Playing

How Highly Successful People Think – You Can, Too

how highly successful people think

How Highly Successful People Think – You Can, Too

Seller's Guides 2023
business failure stories

Top 7 Shocking Business Failure Stories – History Talks

Seller's Guides 2023
business mindset stories

Business Mindset Stories – Top Story to Blow Your Mind

Mindset
b2b marketing

Complete Guide in B2B Marketing in 2023

Seller's Guides 2023
how to succeed in business

How to Succeed in Business – 7 Tips That Will Bring You Success

Mindset
  • Seller’s Guides 2023
  • Alt Marketplaces
  • Amazon Business
  • Amazon SEO
  • Product Sourcing
  • Shipping
See my tools I use to build my business with RESOURCES

© 2023 @Sellers Planet - All rights reserved.

No Result
View All Result
  • Home
  • Courses
  • Services
  • Software
  • Business
    • Amazon
      • Amazon PPC
      • Amazon SEO
      • Amazon Business
      • Editor’s Pick
    • Dropshipping
      • Product Sourcing
      • Shipping
      • How To’s
    • E-Commerce
      • Import
      • Google SEO
      • Google PPC
      • Social Media
      • Websites
      • Alt Marketplaces
  • Investment
  • Mindset
  • About
    • Privacy Policy
Our YouTube

© 2023 @Sellers Planet - All rights reserved.