START HERE – Fulfillment by Amazon (FBA)
Amazon Business Models
FBA is Amazon’s most popular business model. You just send your products to Amazon’s warehouse, and Amazon manages everything else.
* They store your products
* Package and ship the products
* Handle customer service and returns
Because of this, sellers can easily reach global markets, and product value and sales grow much faster. This is the best choice for new sellers.
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Fulfillment by Merchant (FBM)
In the FBM model, Amazon only provides the platform, while order management, shipping, and customer service must be handled by you.
* Suitable for those who want to use their own warehouse
* Ideal for selling products locally or in specific areas
* Helps reduce shipping costs
FBM is a good option for these sellers. Usually, profit margins are higher in this model because you don’t have to pay Amazon’s service fees.
Private Label (PL)
Private Label is the most profitable business model. Here, you create your own brand and sell products on Amazon.
* Source products from manufacturers
* Use your own brand name and packaging
* Market your brand to build customer value
Over time, your brand gains a unique identity on Amazon. Although starting PL requires more investment, it is a long-term and high-profit model.
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