Amazon has become the go-to platform for many entrepreneurs and Business owners looking to add Amazon automation to their portfolios, however many struggle to connect the dots needed to master it. Whether it’s due to long working long hours, lacking the Ecommerce experience, or just not having the time to manage an Ecommerce Business like this, since you need to treat this like a real Business, handling all the orders and everything else involved.
To connect the dots, expert Amazon services can provide valuable support. Expert Amazon services are tailored to fit individual strategies and be beneficial for those looking at exit strategies and others for long-term positions. Working with expert Amazon services can help you effectively manage and scale your Amazon Business, while ensuring that you’re leveraging the best strategies for success.
Amazon has consistently proven why it continues to perform year after year. We know we keep mentioning this, but it’s a well-known fact. During the COVID-19 pandemic, Amazon saw significant growth and has continued to grow each year. A survey conducted by eMarketer shows that U.S. holiday spending is expected to top $282 billion this year, reflecting a 28% increase from last year’s $221 billion.
This is huge and highlights that, while traditional investment vehicles have recently shown a lot of volatility and uncertainty, online and Ecommerce platforms like Amazon’s Seller Central are performing extremely well and we strongly believe this trend will continue. We hope you enjoy reading about how Amazon’s Seller Central can benefit your Ecommerce strategy!
Why Choose a Managed Company Instead of Doing It Yourself?
If you had the choice to build a race car from scratch and then compete in F1, or if you could hire a professional team with decades of experience, one that knows the ins and outs and how to achieve peak performance from the start, which option do you think would deliver excellent results right from the launch?
Most would choose the experienced race team because you’re saving your precious time while leveraging their experience. They’ve done all the trials and errors, so you don’t need to. Time is of the essence, and when you’re working a 9-5, or operating a Business, every minute counts.
That’s why it makes sense to hire an experienced team, leverage their experience, and add a successful Business to your portfolio, earning every month. This is why a lot of successful people are moving away from uncertain markets and toward Amazon automation because it provides an opportunity to capitalize on the online space and make your lion’s share as well.
Online and managed companies with expertise and a strong track record are proving to be a valuable piece of the puzzle for entrepreneurs and Business owners. Without stumbling through the process, you’ll now be in a great position to start an Ecommerce Business and for you to achieve peak performance as well from the beginning. It’s much better to avoid the trial-and-error phase and hit the ground running with professional support.
To summarize in a very easy understandment in relation to the Amazon Dropshipping Business model. This involves listing hundreds or thousands of products from suppliers. When a customer makes a purchase from your store, you then buy the product from the supplier, and then the supplier ships it directly to the customer. With the Amazon Dropshipping Business model, you only make a purchase after you’ve already made a sale, so there’s no upfront inventory cost and you’re already in profit. Bonus!
Another great benefit of the Amazon Dropshipping Business model is that there are no overhead costs related to inventory. You only purchase products once they’ve been sold, which eliminates the risk of holding unsold stock.
As for returns, they do happen. While you can’t control customer behavior, you can handle returns very efficiently. If a customer returns a product, you provide the return address to the wholesaler or supplier. The supplier processes the refund, and once you receive the money from the supplier, you then refund the customer. This means you only make purchases after generating a profit and only process refunds once the supplier has refunded you. Another bonus!
Overall, the Amazon Dropshipping Business really is an excellent model, due to its low risk and the potential for quick growth without the need for upfront inventory purchases. Our team at Prime Summit Solutions uses a thorough checklist for each product, drawing on over a decade of experience in the Ecommerce space to ensure compliance with Amazon’s metrics (Tos). Simply put, this approach helps optimize our client’s store performance and supports long-term client success in the Amazon Dropshipping Business.
What Is Fulfillment by Amazon (FBA) and How Does It Work?
Let’s start by explaining the FBA model. FBA stands for Fulfillment by Amazon. In summary, this means that Amazon handles everything related to your inventory. Amazon is responsible for storing inventory, picking, packing, shipping orders, handling customer service, and managing returns. This differs from Dropshipping, where a third-party vendor manages logistics, which is also a valid approach and complies with Amazon’s terms of service.
Here’s how we manage Amazon FBA services at Prime Summit Solutions:
You’ll have a dedicated team of specialized account managers working for your Business seven days a week. This team handles all aspects of product research, including finding products that are likely to sell out within 30 days. Our Amazon FBA services ensure that every part of the fulfillment process is handled efficiently. With our Amazon FBA services, you can focus on your work-load, whilst we optimize your Business.
We’ll build you a website and set up an email for brand outreach. Our team then reaches out to brands via phone and email to secure product deals. Once we’ve secured these deals and received all agreements, we purchase the inventory, manage the logistics of shipping the products to the Amazon warehouses, and list them on your store.
One major benefit of the online FBA Business is that, since your products are stored in Amazon’s warehouses, you can often offer same-day or next-day delivery, which can hugely boost your sales. Another advantage of the online FBA Business is faster payouts. With Dropshipping, you’re typically paid every 14 days, but with FBA, you can access your funds every 3-5 days if needed, which helps maintain liquidity. The net profit margins with the online FBA Business are also generally higher compared to Dropshipping with wholesalers.
FBA is a great service for forming a strong partnership with Amazon. Amazon manages all aspects of fulfillment and earns a percentage of each sale, which can lead to improved efficiency and increased sales. FBA is highly recommended for those looking to optimize their Ecommerce operations and maximize your sales potential.
The Bottom Line
There are also services like white label and private label, which involve branding products under your own label. While these services don’t typically involve patenting, they allow you to create a unique brand identity for products manufactured by others. This can be a great exit strategy because if a product performs well, you can add more products under your brand, making your Business more attractive to potential buyers. We’ll go into more detail on this later, as it’s more relevant for the long term. It’s important to build a solid foundation with good reviews and feedback before moving into these strategies.
At Prime Summit Solutions, we can help you get started with your Ecommerce journey, whether it’s through Dropshipping, FBA, or eventually transitioning to private label or white label once your store is more established. We also offer Amazon automation services to streamline your processes and maximize efficiency. Our Amazon automation services ensure that every aspect of your online Business operates smoothly. If you’re considering these services, reach out to us through our website. An account manager will be in touch within 24 hours to schedule a free, no-obligation call with you. Our Amazon automation services are designed to support your Business growth at every stage.
FAQ
How are payments handled?
As the legal entity owner, you’ll receive all payments directly from Amazon. Since everything is registered under your name, Amazon will pay all earnings directly into your bank account.
What are the profit margins for Dropshipping versus FBA?
With Dropshipping, the profit margins typically range between 10-20%. For Fulfillment By Amazon (FBA), the margins are generally between 15-30%. These margins can vary based on several factors, but this is clean profit paid directly into your bank account every month.
How do I receive financial reports?
We send a detailed monthly report at the end of every month. This report includes the cost of each product sale from the supplier, the supplier we purchased the product from, the listing price on Amazon, the amount Amazon paid you, any taxes etc. This report is useful for your accountant at tax time and can help save you money by reducing the need for additional accounting services.
Do you offer any guarantees for return on investment?
Yes, we offer a legal money-back guarantee. If you don’t achieve a full return on your investment within a specified period, you’ll receive a full refund, while keeping all the profits earned along the way. This guarantee is part of our legally binding agreement, which motivates our team to perform consistently and meet targets to ensure your store’s success.
What’s the next steps?
The next step is to reach out to us through our website. After you fill out your details in the contact form, one of our account managers will get in touch with you. They’ll schedule a phone call to discuss everything with you and answer any questions you might have.