Being a reseller and selling products from your front room is a highly entrepreneurial endeavor, and one that can certainly be successful. BUT it also comes with a lot of drawbacks and limitations. That’s why more and more sellers are moving to Fulfillment by Amazon.
Here are just some of the reseller problems that FBA 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 Fulfillment by Amazon.
Delivery
The other big 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 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 Fulfillment By Amazon 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 particular 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 doesn’t quite solve this problem, what it does do is put your products onto the world’s biggest distribution platform. That counts for a lot!
This is why so many people avoid the reseller business, even though it might be an appealing and straightforward model on the face of it. With Fulfillment By Amazon, many of these issues are solved. All that is left then, is to choose an amazing product and to market the heck out of it!
