Fulfillment By Amazon – A Game Changer

The Amazon marketplaces have several key factors that make them very attractive to foreign sellers:

  • FBA: Or Fulfillment by Amazon. This allowed foreign sellers to send their inventory to Amazon warehouses and let Amazon fulfillment centers to manage customer orders. Incidentally, products that are registered as FBA enjoy higher visibility and ranking because they sell more than their counterparts – fulfilled by merchants. Reason? They also automatically qualify to the Prime membership program.
  • Prime: Amazon Prime Membership Program captures more than 80M members in the US alone, and they are still growing exponentially. Although the $99/year membership program gives a lot of perks to its members, the main attraction is its free expedited shipping that allows members to get their goods within 2 days of purchase. This entices subscribers to do even their basic grocery shopping. And with shopping events like Prime Day, Black Friday, Cyber Monday, etc., sellers with FBA products enjoy huge lifts in their sales.
  • World-wide Presence: There are more and more Amazon marketplaces outside US, refer to the graph above. This gives sellers tremendous leverage in scaling their business with very little or no structural change in their company. Amazon makes it easy for sellers to sell in their other marketplaces. Lately, they even provide account managers to help US sellers to branch out to their next largest marketplace – Europe (UK, France, Germany, Spain & Italy).

So, the combination of these 3 factors gives entrepreneurs anywhere in the world to start a very profitable business selling at the Amazon marketplaces.

Here’s a 2.5-minute video explaining what FBA means and how it can help your business.

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  • July 8, 2017