Top Challenges Faced by Resellers, Solved by Amazon FBA
Written by Phoenix Marcón on October 30, 2020
Being a reseller and selling products from your front room is a highly entrepreneurial endeavour and one that can undoubtedly be successful. BUT it also comes with a lot of drawbacks and limitations. That is why more and more sellers are moving to Amazon FBA (Fulfilment By Amazon).
Here are just some of the problems that this will solve for you.
Storage
One challenge for many front-room businesses is storage. If you are selling something relatively small and only putting in small bulk orders, then perhaps this won’t be an issue. But if you hope to grow your business to sell to hundreds of people daily, then you will start to run out of space fast. That leaves you with two options: invest in an expensive warehouse or use Amazon FBA.
Delivery
The other significant bottleneck for a small home business trying to grow is delivery. Even when you have roped your partner, kids, Mum and Dad, and neighbor into the packaging and sending your items, this still limits the number you can shift in a day. More to the point, this is soul-crushing work. Didn’t you start running a business so that you could enjoy what you do? Is this what you envisioned?
What’s more, is that Amazon FBA provides your buyers with the benefits of Amazon Prime – giving them an incredible experience every time.
Returns
Then there’s the issue of how to deal with returns, with damaged goods, with missing deliveries… all these things significantly add to the challenge and can certainly eat into your profits.
Too many businesses will forget this: they will calculate their profits based on COGs, keystone pricing, and other clever-sounding strategies. But they forget that sometimes people return orders.
For industries – the clothing industry in particular – this can often be crippling.
Marketing and Promotion
And after ALL of this, you are still going to need to handle marketing and promotion. You could be giving away blocks of gold, but if you don’t tell anyone that this is what you are doing, then you won’t manage to shift any units!
While Amazon does not entirely solve this problem, what it does do is to put your products onto the world’s biggest distribution platform. That counts for a lot!
Therefore, so many people avoid the reseller business, even though it might be an appealing and straightforward model on the face of it. With Amazon FBA, many of these issues are solved. All that is left then is to choose a fantastic product and to market the heck out of it!
goniums On July 25, 2020 at 2:33 pm
Thanks Phoenix. This article helped a lot.