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How to Earn More with Amazon by Knowing Core Selling Concepts

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How to Earn More with Amazon by Knowing Core Selling Concepts

amazon First of all, let me make this clear, this is not about Amazon’s affiliate what I am going to talk in this post nor is this in any way related to Amazon Associate Program. This is the basic selling method what Amazon provides to its sellers.

Many of us have tried our luck, before, in generating revenue from Amazon by several ways. Many of us also had success, though, some simply did quit. This failure might be due to ignorance of Amazon procedures or failing to understand the core selling concepts of Amazon. I am not telling that Amazon affiliate program is not worth it. But in this post I am trying to focus on how to profit more from Amazon through concepts other than Amazon Associate Program.

What Amazon offers other than affiliate program?

Does Amazon offer other revenue generating programs other than Amazon affiliate program? Answer is, Yes. Have you ever heard terms like fulfilment by Amazon, dropshipping etc? Well, I will explain you gradually.

Think yourself as a seller. You have goods in stock and want to sell. But you don’t have an e-commerce site nor do you intend to spend money and time for one. Moreover you don’t have money to invest in advertising. In that case, you sell your stuff through Amazon, by becoming one of Amazon’s seller.

Now you get a ready-made e-commerce platform, marketing or traffic that is pre-generated and free (Amazon have millions of subscribers). All you have to do is list your product and wait while it sells. You can decide your own profits unlike the affiliate programs. Yes, you got it right. This is not anything new. Many sellers are already earning thousands using this technique. But what about those who quit? And what if you don’t have any goods in stock to sell?

Classification of Amazon selling concept

Let me broadly classify this Amazon core selling concept into 2 categories- ‘buying from Amazon concept’ and ‘selling from Amazon concept’.

1-Buying from Amazon concept

Imagine you don’t own any product or you don’t have any stock. So what do you do? Here’s a way. You can still sell products of others already listed in Amazon. For this you have to open a seller account in some site other than Amazon for example say eBay. You list the Amazon’s product in eBay with your profit margin added to price. When your item sells, you buy it from Amazon paying Amazon the price of the listing, leaving behind your profit, that remains with you. You then mention the shipping address of your eBay customer while checking out at Amazon so that the item would be delivered directly to your customer.

Since you practically don’t own any goods and actually buy it from Amazon hence, the name-buying from Amazon concept. This is one way to profit from Amazon if you don’t have a e-commerce website or products of your own.

2-Selling from Amazon concept

If you have your own stuff to sell or have invested in your own stock then it’s a completely different scenario. You don’t need to buy anything from Amazon. You only sell to your customer. In this case, however, you need not go to other sites to sell. You can sell on amazon itself signing up as Amazon’s seller. Amazon gives a shipping service to sellers those who opt for it, known as Fulfillment by Amazon or simply FBA. This is a typical service in which you can store all your stock in Amazon’s warehouse also called Amazon Fulfillment Centers. When your product sells, Amazon pack the item from the warehouse for you and ships them instantly. They handle all packing, delivery and customer service for you right after the sale confirmation. Sounds interesting? So it is.

This step eliminates any delay in delivery of goods to customers as Amazon has blazing fast delivery service. It builds trust between customers and sellers and helps Amazon to be the most loved brand worldwide.

If you don’t know this, I may add here that if you already have a e-commerce store, with your own stock, and want Amazon to ship for you then it can be done as well. The Fulfillment by Amazon also ship for sellers and e-commerce owners who are not using Amazon platform to sell their goods. All you need is to send all your stock to Amazon Fulfillment Center, pay their monthly rent and that’s all. When you get a sale, just inform them and Amazon delivers the product to your customer’s address. Learn more about Amazon’s FBA program.

So we talked about the two broad classifications of Amazon selling concept which is more graphically illustrated in the picture.

amazonsconcept1

How Fulfillment by Amazon is different from Dropshipping

People often mistake Fulfillment by Amazon to ‘Dropshipping’. Dropshipping is a totally different concept. Dropshipping is a process in e-commerce in which seller don’t need to keep any products in stock. Instead the seller partners with a wholesaler who have his own stock and also ships for you. You promote the wholesaler product with your profit margin.

Now you must be wondering which category ‘Dropshipping’ falls out of the two I mentioned above. Well, it does not fall to any. As you can see in fulfillment we have assumed we owned our goods and sent to Amazon warehouse and to the contrast, in dropshipping we don’t have our own goods.

Amazon doesn’t provide Dropshipping. It only provides Fulfillment.

Having known all these things you can now boost your own selling business with the e-commerce giant Amazon. If you find this article interesting, do share it on Facebook and Google plus.

This is a guest post by Yashobant Naha. If you like to share an original idea here at ShoutMeLoud, read about how you can become a Shouter.

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    { 8 comments… add one }

    • sagar

      yesterday i learned a totally new concepts about amazon from shoutmeloud, thanks harsh to allow this great guest writer Yashobant Naha to post on your blog and thanks Yashobant Naha to share an awesome post.

      Reply
      • yash.naha

        Thanks Sagar. Amazon is amazing indeed. I will bring in more relevant topics in future. Stay tuned.

        Reply
    • Anchit Shethia

      Practically does not work.

      People will buy from you in eBay. They will get a Bill of Amazon + Lesser amount in it.

      They will give you negetive review on eBay and your account is shut forever :)

      Reply
      • naha.yash

        Thanks Anchit for sighting the issue. See if that is the case, a simple solution is you send them a final bill to their email mentioning you as the eBay seller. You can add a note-“Due to unavailability of stock we are sending you the product from Amazon. Please find our final bill and disregard the Amazon bill”. What I am going to tell is in business you have to add a little creativity.

        Reply
    • Shounak

      Hi Yash,
      I do have an e-commerce website, and the Idea of FBA sounds interesting. I will surely look into this option, but I have a question here is this facility of FBA also provided by Amazon India?

      Reply
      • naha.yash

        Yes, Amazon India also provides the service. Please find ‘Fulfilment by Amazon’ at the footer of amazon.in

        Reply
    • Vishal Srivastava

      In the first case Amazon will deliver the product with his own bill which will be lesser than the amount you procured from your buyer. I think it will create a negative image in the minds of your buyers.

      Reply
      • naha.yash

        Thanks Vishal for bringing the issue to light. But there is always a solution. In this case your customer buys from eBay so he should get a bill from eBay Seller i.e. you. You have to send a bill with the actual amount to the customer by email or by post mentioning- “This is the final bill for your transaction. Please disregard any intermediate bills”.

        Reply

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