Entrance ticket to ecommerce: trading methods on Amazon for those who decide to join the "celebration" right now

There may not be a country for love, but there seems to be a country (or even a continent) for retail.

It's called Amazon and you can easily get lost in it.

Want to taste the commercial dream it has to offer?

Get to know two models for joining with reduced risk.

For sure, passive income is not.

Ditza Kern

07/26/2022

Tuesday, July 26, 2022, 09:34 Updated: 10:03

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Expert opinion and the Facebook group of the marketing channel in Vala (photo: photo processing, Yaron Other)

The current economic crisis has brought back to the table what used to be called, simply "work from home" (the words "passive income" even our keyboard is ashamed to recycle, so we enclosed them in brackets).

However, with the variety of online trading methods that exist today, even the intelligent among us may make a mistake or miss, and those without experience may discover that the money was never really waiting on the floor, at least not the big money.

If we try to examine sane options, excluding unknown suppliers and platforms that do not always come with a guarantee of authenticity and reliability - the first place we turn to is the temple, aka Amazon.

The e-commerce giant founded and still led by Jeff Bezos dominates over 45% of the global e-commerce market.

In 2021 alone, its revenues totaled approximately $386 billion, making you the third largest company in the world in terms of revenue.

With more than 12 million products and hundreds of thousands of merchants, is it any wonder that people from almost every segment and sector want to join the platform and share in its success?

But joining Amazon's marketplace is no small matter.

There are several routes, each of which is branched in its own way, and can be more or less profitable depending on the nature of the products you chose to promote.

So in order not to bore you, in this article I chose to focus on two main channels where you can profit from the success of the global trade giant:

Dropshipping on Amazon in the FBM model

The FBM - Fulfillment by Merchant route means that the delivery of the products is done by the supplier - that is, by you - but with a slight change and working with a dropshipping model, you can take the whole story one step further and completely avoid holding inventory.

If you've heard the term dropshipping before, you're already halfway to understanding this trading method that Amazon offers merchants.

Instead of buying goods in advance, all you have to do is find suppliers who offer equal deals, and offer the same products on Amazon plus the markup you want to receive for your efforts.

You will order the products you have chosen to sell from the supplier directly to the customer's home only after you have received the order, thus removing the risk of buying stock in advance.

So far it sounds great, but with this method you will have to create your product pages (lists) from scratch and promote them yourself, of course, through sponsored ads.

Setting up a product page on Amazon requires deep thinking, and collecting ratings and opinions means that you will have to provide first-class service for the customers who will buy from you.

Every little mistake will cost you a review, and if you accumulate negative reviews, the chance that you will be able to sell anything tends to zero.

Additionally, since these types of pages are not prioritized in Amazon search, you will need to invest in paid promotion within the platform to make sure people see your products.

Advantages:

• Minimal investment and zero risk

• No need to keep inventory

Disadvantages:

• Losses are possible if your provider has changed the offer

• Packages arrive at the customer with the branding of other companies, which may confuse your customers

Summary for DEM people:

Designed for those who have a lot (a lot!) of time and patience.

It's a job that may be around the clock.

Oh, and you're not building a brand.

This means fighting every day for your liter of meat.

you decide

No, it's not a Brinks robbery, it's just Amazon (Photo: Unsplash)

Arbitrage on Amazon in the FBA model

This is a slightly newer method in which the entire logistics side is managed by Amazon (FBA = fulfillment by Amazon). Here, too, your profit line is based on the markup you will be able to create when you find deals worth more than what is available on Amazon, but unlike dropshipping, here you buy the inventory and send it to Amazon's warehouses in advance. When a customer places an order, Amazon will pull the products from the inventory you sent them and deliver them to the customer.

There are various tools on the market that will help you find good deals outside of Amazon, which you can market using the FBA method. The biggest advantage of this method is the ability to dress up product pages that already exist on Amazon, which naturally get priority in search. This will save you the need to collect reviews and pay for sponsored promotion within the platform, but for that you will have to find the exact product sold on Amazon - not like, not similar, but exactly the same product.

Of course, you are not the only one who thought of this method, and as sellers using the FBA method, you will have to compete for the listing with other merchants, but since the method allows you to buy a small inventory, what is likely to happen is that there will be a rotation between the sellers, and when one seller finishes his inventory, the sales will go to the next seller.

One of the most important steps in this method is to use a buffer - someone in the destination country to whom you can send your inventory before it reaches Amazon's warehouses.

In such an ash, his role will be to strip your inventory of any sign that indicates that the products were bought elsewhere: logos, barcodes, and other unrelated packaging must come off before the products arrive at Amazon warehouses, so as not to cause mistakes.

Remember that Amazon warehouses are incredibly computerized and if there are mistakes, chances are you will have no one to talk to.

Therefore, it is important to bring the products to Amazon exactly as it asks, even if it costs you a dollar or two more.

Advantages:

• Fast delivery to the customer

• Option to dress up existing product pages including reviews

• You can start with a small stock - minimum 10 units

Disadvantages:

• Requires an initial investment with no guarantee that your inventory will sell

• Some products require special approvals

• Additional cost to Amazon for storage and shipping

Summary for DEM people:

We wouldn't really call this model "income supplementation" either.

It's business for everything.

with continuous preoccupation.

If you feel like it, it can even be fun, but no one guarantees that you will bring home a living in the short term.

In conclusion

It is important to understand that there is no "easy money", at least not in such oceans.

If you decide to choose to enter one of the models, you will have to start reading in depth articles, and especially posts and comments from those who have tried, and finally rub and try yourself, time after time, category after category.

The tasting that I chose to bring you from the variety of options that Amazon offers to merchants can help you choose which of the two methods may suit you, if at all, and then complete knowledge.

There are other options that I haven't touched on, but if anything from this tasting speaks to you, I trust you and the network, that you will know how to find your way and fight for your place as successful traders on the world's largest e-commerce platform.

is a reporter on the Walla! channel.

Marketing and digital

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