Want to be the next Shark Tank millionaire, but unsure how? Four words: Start an FBA business. In this post, we’ll:
- Outline the Fulfillment by Amazon (FBA) program;
- Explain why the time is now to start an FBA business and how they’re helping to revive local economies; and
- Review a few legal points all new FBA sellers should consider.
At the end, we’ll hook you up with further reading links.
Comfortable? Ready to start? Great! Let’s do this.
What Is Fulfillment by Amazon (FBA)?
Billed as a “pick, pack, and ship” service, FBA members ship inventories to Amazon warehouses instead of their homes, offices, or private warehouses. What’s the benefit of sending directly to Amazon? You don’t have to worry about the logistical and administrative headaches associated with inventory and shipping.
When an order comes in, Amazon picks the item from the shelf, packs it, and then ships it. On their end, sellers get notifications, updated inventory reports, and, of course, proceeds from sales (minus FBA fees).
Customer isn’t satisfied? No problem, Amazon also handles the return process.
Why Is It A Great Time To Start An FBA Business?
Amazon has always cared about invention and long-term thinking — and its FBA program embodies these core values. Since its inception, the operation has grown exponentially and stands to become a major — and sustainable — economic niche.
Marketplace sages predict that, within a matter of years, online retail will be the new investment banking. In other words, ecommerce is where the money is (or, at least, where the money is going).
Check out these stats for 2016:
- FBA sellers shipped over 2 billion items.
- Amazon sellers, from over 130 countries, fulfilled orders for customers in 185 countries.
- The number of FBA sellers that reached $100,000 in sales grew by 30 percent.
People Buy Online
Customers conquered their online shopping fears. Internet retailers are taking over. In the U.S. alone, experts expect the industry to reach $485 billion by 2021 — not to mention overseas opportunities.
So, if you want to be America’s next rags-to-riches story, go where the shoppers are — online.
FBA Growth = Local Growth
Not only are FBA sellers killing it online, but their efforts are spilling offline. According to analysts, over the past few years, Fulfillment by Amazon entrepreneurs have created approximately 600,000 small business jobs in their local communities.
Extra Credit Reading & Help
Are you leaping into the FBA Ocean? If you do give it a whirl, arm yourself with knowledge. To help out, we’ve compiled some links.
- A Legal Guide To FBA Businesses – This is an overview of legal issues frequently faced by FBA sellers.
- E-Commerce News & Tips Blog – Click for the latest happenings affecting online sellers and marketers.
- Fulfillment by Amazon Legal FAQ – An extended legal Q & A for people who want to start an FBA business.
- Amazon’s Review Policy – Reviews are a big part of ecommerce; it’s important to understand the platform’s stance on reviews before jumping in.
- “Organic” Labeling and Online Marketing — A short explanation about the dangers of using “All Natural” in product marketing.
- Introduction to Native Advertising Rules — A summary of the Federal Trade Commission’s native advertising rules.
- 5 Tips For Shaking Counterfeiters – Product knockoffs are a frustrating part of online selling. Here are some target avoidance tips.
Get Answers To Your FBA Business Questions
Got questions about starting an FBA business or other online retail venture? Give us a call. Our team has assisted hundreds — if not thousands — of entrepreneurs and startups with various Internet law and online business matters, from minor governance issues to complex litigation support.
To learn more about Kelly / Warner, head over to the “About Us” section. Interested in reading more about e-commerce case studies and business tips? Digitally ambulate your way over to the e-commerce resource section.