Amazon FBA and other ecommerce, good or bad?

[David Flanagan]

I am considering becoming an amazon FBA and partaking in other forms of ecommerce such as ordering products in bulk and selling on ebay. Does anyone have any experience/advice in partaking in such business opportunities. I know they are not fastlane, but is this a good side hustle?

 

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[Stephen96]

I am considering becoming an amazon FBA and partaking in other forms of ecommerce such as ordering products in bulk and selling on ebay. Does anyone have any experience/advice in partaking in such business opportunities. I know they are not fastlane, but is this a good side hustle?

I’d consider doing your research, many people do it, they all put there eggs in one basket, then the eggs break leaving you in the red. Many different opportunities for you to tailor with, be creative. Don’t follow the same train everyone else is getting on, or it will burn. Millions of different ideas out in this world to make you money. Read, research, don’t ride the hype to only drown.

 

[David Flanagan]

I’d consider doing your research, many people do it, they all put there eggs in one basket, then the eggs break leaving you in the red. Many different opportunities for you to tailor with, be creative. Don’t follow the same train everyone else is getting on, or it will burn. Millions of different ideas out in this world to make you money. Read, research, don’t ride the hype to only drown.

Thanks, do you have any other ideas for side hustles to make quick money?

 

[parabolic]

It can be good. There are countless variables. I would recommend searching the forum for the term "FBA" and/or "eBay" and you'll be able to see many other threads about this topic.

 

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[David Flanagan]

It can be good. There are countless variables. I would recommend searching the forum for the term "FBA" and/or "eBay" and you'll be able to see many other threads about this topic.

Thanks for the advice, I will do that.

 

[ZackerySprague]

I have little experience with eCommerce, but I would focus on finding a product that helps the marketmind and receive feedback.

I wouldn't just use Amazon FBA as the only source due to the control aspect of it, it technically would be a job-proxy, or having someone having entirely control whether I make money or not.

I would use it as a channel for distribution to serve my products to hundreds, if not, thousands. I would create a business system using Shopify and look for 3PL's or Fulfillment companies such as fulfillment.com or dollarfulfillment as additional distribution channels to serve marketmind.

I would also create an email list as well to help me control my traffic and increase the evaluation of my company. Cool tip you can use instagram to find ecommerce companies and use a tool like Spyfu.com to review their traffic or Koala Inspector in chrome to find their best selling products and more data. The email list is there so that you can control your traffic and not only using paid. When someone goes through the normal funnel process as seen below

Facebook Ad -> Product Store Page -> Add To Cart -> Checkout -> Purchase. The customer can drop off here entirely, you would want to catch an email address at least.

Also within the email list seoarate the list from the freebiers from the buyer's. The goal would be to convert the freebiers to purchasers and promoting new products or discounts to the buyer's list.

I hope this helps. Also you will probably need a lot of capital and such expect to burn through your marketing budget with the potential to not gaining anything in return except for data on whether or not your market wants the product you are providing.

The idea would be to utilize the wealth equation explained in TMF Wealth = Net Profit x Asset Value.

A) Net Profit = Unit's Sold (Scale) x Unit Profit (magnitude)
B) Units Sold = The Total TAM or potential of people you call sell to. So say you had 10,000 visitors to your store that could be the potential you could sell it
C. Unit Profit = The total amount of profit you'd make per unit of your product. So say you sold a product at $25 dollars, but you made $10 dollars each product that sold.

The goal would be to increase the number of visitors and conversions made at your store or distribution channels. But also trying to us advertising as the initial inertia to get the engine oiled to create a productocracy so that advertising may no longer be needed.

Try to be different than the normal go to alibaba, order product, and then sell on Amazon. Not saying you won't have any success. I just hope this increases your odds of success.

Theirs a few good books on this as well:

1. Ecommerce Engine.
2. Product Entrepreneur by Chris Clearman. (He runs a company called Matador Outdoor Equipment).
3. Ecommerce Evolved by Tanner Larson (Definitely recommend).
4. 12 months to 1 million by Ryan Daniel Moran (Had a $10-15million dollar exit by selling a major stake of his company called SheerStrength.com that he ran alongside with a guy called Matt Clark.

 

[David Flanagan]

I have little experience with eCommerce, but I would focus on finding a product that helps the marketmind and receive feedback.

I wouldn't just use Amazon FBA as the only source due to the control aspect of it, it technically would be a job-proxy, or having someone having entirely control whether I make money or not.

I would use it as a channel for distribution to serve my products to hundreds, if not, thousands. I would create a business system using Shopify and look for 3PL's or Fulfillment companies such as fulfillment.com or dollarfulfillment as additional distribution channels to serve marketmind.

I would also create an email list as well to help me control my traffic and increase the evaluation of my company. Cool tip you can use instagram to find ecommerce companies and use a tool like Spyfu.com to review their traffic or Koala Inspector in chrome to find their best selling products and more data. The email list is there so that you can control your traffic and not only using paid. When someone goes through the normal funnel process as seen below

Facebook Ad -> Product Store Page -> Add To Cart -> Checkout -> Purchase. The customer can drop off here entirely, you would want to catch an email address at least.

Also within the email list seoarate the list from the freebiers from the buyer's. The goal would be to convert the freebiers to purchasers and promoting new products or discounts to the buyer's list.

I hope this helps. Also you will probably need a lot of capital and such expect to burn through your marketing budget with the potential to not gaining anything in return except for data on whether or not your market wants the product you are providing.

The idea would be to utilize the wealth equation explained in TMF Wealth = Net Profit x Asset Value.

A) Net Profit = Unit's Sold (Scale) x Unit Profit (magnitude)
B) Units Sold = The Total TAM or potential of people you call sell to. So say you had 10,000 visitors to your store that could be the potential you could sell it
C. Unit Profit = The total amount of profit you'd make per unit of your product. So say you sold a product at $25 dollars, but you made $10 dollars each product that sold.

The goal would be to increase the number of visitors and conversions made at your store or distribution channels. But also trying to us advertising as the initial inertia to get the engine oiled to create a productocracy so that advertising may no longer be needed.

Try to be different than the normal go to alibaba, order product, and then sell on Amazon. Not saying you won't have any success. I just hope this increases your odds of success.

Theirs a few good books on this as well:

1. Ecommerce Engine.
2. Product Entrepreneur by Chris Clearman. (He runs a company called Matador Outdoor Equipment).
3. Ecommerce Evolved by Tanner Larson (Definitely recommend).
4. 12 months to 1 million by Ryan Daniel Moran (Had a $10-15million dollar exit by selling a major stake of his company called SheerStrength.com that he ran alongside with a guy called Matt Clark.

Wow, thats a lot of information. Thanks. I have a few questions though.

Are you suggesting that I create/invent my own unique product and sell that via ecommerce? That makes since but wouldn't that take years to invent, design, engineer, prototype, test, develop, and mass produce my product? Wouldn't there also be immense costs of manufacturing my product?

Also, I am confused as to why I would use 3PL's and fulfillment companies if this were to happen. Wouldn't it be easier just to package and ship the products myself if I am manufacturing them?

Lastly, were you recommending being different from the normal by going to alibaba, ordering products, and selling them on Amazon or were you recommending not do that because that is not different from the normal?

Thanks again, I am a beginner and am still learning all this stuff.

 

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[BlokeInProgress]

Are you suggesting that I create/invent my own unique product and sell that via ecommerce?

You should test first your product if you're going that way. There's heaps of competition in Amazon FBA doing Retail Arbitrage, Online Arbitrage, Wholesale and now what they call Replishments (groceries, etc...). Most products in Amazon is gated and may require approval from Amazon first before you can sell. If you want to learn the ropes maybe try RA, go to your local shops and scan discounted products (using the Amazon app), this will tell you whether you can/cant see the product and how much it sells. Buy a couple of products and test which sells and maybe stock more of it.

Also, I am confused as to why I would use 3PL's and fulfillment companies if this were to happen. Wouldn't it be easier just to package and ship the products myself if I am manufacturing them?

You have to send your items to Amazon warehouse if you want Amazon fulfilling your orders or you can ship them yourself (following the Amazon shipping standards). Fulfillment companies are there to box and ship your items to Amazon Warehouse if you choose Amazon Fulfillment, they already know what the standards are - also they store your items and ship to customer as well (in case you dont have space for your items e.g. garage is full).

Lastly, were you recommending being different from the normal by going to alibaba, ordering products, and selling them on Amazon or were you recommending not do that because that is not different from the normal?

@Walter Hay has a great book about sourcing products.

 

[David Flanagan]

You should test first your product if you're going that way. There's heaps of competition in Amazon FBA doing Retail Arbitrage, Online Arbitrage, Wholesale and now what they call Replishments (groceries, etc...). Most products in Amazon is gated and may require approval from Amazon first before you can sell. If you want to learn the ropes maybe try RA, go to your local shops and scan discounted products (using the Amazon app), this will tell you whether you can/cant see the product and how much it sells. Buy a couple of products and test which sells and maybe stock more of it.

You have to send your items to Amazon warehouse if you want Amazon fulfilling your orders or you can ship them yourself (following the Amazon shipping standards). Fulfillment companies are there to box and ship your items to Amazon Warehouse if you choose Amazon Fulfillment, they already know what the standards are - also they store your items and ship to customer as well (in case you dont have space for your items e.g. garage is full).


@Walter Hay has a great book about sourcing products.

Thanks, I will definitely make sure to look into some of that stuff and check out that book!

 

[Walter Hay]

You should test first your product if you're going that way. There's heaps of competition in Amazon FBA doing Retail Arbitrage, Online Arbitrage, Wholesale and now what they call Replishments (groceries, etc...). Most products in Amazon is gated and may require approval from Amazon first before you can sell. If you want to learn the ropes maybe try RA, go to your local shops and scan discounted products (using the Amazon app), this will tell you whether you can/cant see the product and how much it sells. Buy a couple of products and test which sells and maybe stock more of it.

You have to send your items to Amazon warehouse if you want Amazon fulfilling your orders or you can ship them yourself (following the Amazon shipping standards). Fulfillment companies are there to box and ship your items to Amazon Warehouse if you choose Amazon Fulfillment, they already know what the standards are - also they store your items and ship to customer as well (in case you dont have space for your items e.g. garage is full).


@Walter Hay has a great book about sourcing products.

There is a recent thread dealing with this subject.

[IMG alt="Walter Hay"]https://www.thefastlaneforum.com/community/data/avatars/s/26/26072.jpg?1410996725[/IMG]

Launching and Ranking a product on Amazon [Execution Thread]​

Walter​

 

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