Amazon FBA – Understanding the relationship between time and money

Selling through online platforms has become one of the trends today and it will continue and seize to exist until there will be another better way of selling but as of now, this is the greatest thing you can ever imagine. With just a few clicks and ticks and you are done.

 

There are a lot of online shops or what they call as e-commerce business where they are licensed to conduct the business online. Amazon is one of the top e-commerce shops in the world as of today. And it has been gaining a lot of sales compared to the brick and mortar stores. Amazon is an online shop which produces a wide variety of products and services. It is considered one of the top online selling stores in the world today.

You can find anything on Amazon, be it the most needed product for the most unnecessary product you can easily find. Amazon does not only sell their products but as well supporting other small businesses by letting them sell their products as well. Over the past years of Amazon reign, there have been many jobs offered to people who are lucky enough to have a stable career in the said company.  Amazon is a company made by builders and sellers and inventors. If you belong to one of those mentioned, then maybe you got the right skills for Amazon. This company is not a product-based company that does not have a high-quality standard but this company maintains a name that their products will sustain and last for years.

One of the challenges an online seller always does come across is the delivery method and time of delivery. This is not just some challenge you can always find a solution to. This is more of an undying problem. And it is not in the seller’s hands why the delivery is such a shame. The problem is that of the delivery agency. But do not always put hands on the agency because most of the time it is because of the weather. But here is the catch, regardless of the reason for the delivery delay, people will understand if the agency and the seller will always keep the buyer updated and that is why Amazon, as the world’s top seller have planned and come up with the solution which they named it as Amazon’s Fulfillment by Amazon.

Amazon’s FBA is a service available to you when you sell on Amazon. With FBA, you can store your products in Amazon’s fulfillment centers, and they will be the one to pick, pack, ship, and provide customer service for the buyers. FBA starts working after you send your products to Amazon. They will be the one to store your product, whenever a customer orders your product then FBA will pick and pack your product thus ship and provides support after.

“You sell it, we ship it”. Amazon has created one of the most advanced fulfillment networks in the world, and your business can benefit from our expertise. With Fulfillment by Amazon (FBA) you store your products in Amazon’s fulfillment centers, and we pick, pack, ship, and provide customer service for these products. Best of all, FBA can help you scale your business and reach more customers, in a 2014 survey, 71% of FBA respondents reported that their unit sales increased on Amazon.com more than 20% since joining FBA.” Amazon’s description on FBA. Time and money are the two major factors to improve in Amazon FBA. But you can never have time and effort back, instead, you will earn much more money than you used to.


Pros and Cons of FBA

 

Pros

  1. FBA is less labor intensive
  1. It is possible to get started with little prior experience in e-commerce
  1. No hassle in shipping and returns. Amazon FBA puts your products into Amazon’s simple returns process. You don’t have to deal with the customer anymore, all of that is done through Amazon, and they handle all of the logistics, too.

Cons

  1. It will definitely cost you higher. You need more of a cash investment.
  1. Amazon FBA is more of a closed shop, there is less information and transparency out there when looking for information.

In the first part of your business, you will have much more time than money. And at the start of running an FBA business, the more you work, the more money you can make. And as your business grows, you will notice that you will be spending much more time than before. As this becomes a problem, you will now have to decide to make the work all by yourself or hire somebody to help you out. If you choose to work on your own, you will have less time for personal relationships. Plus you get to have much less time to rest, which is a vital part for your critical thinking.

But in the business, for long-term ones, money is not the issue anymore. The source of growth can now be from trading your money for more time. The less you work, the more money you can make. If you can find someone else to do the job for you, then, in the long run, you will be the own CEO of your company. If you are an FBA seller then probably you already know how to outsource. Outsourcing is a huge component of growing an FBA business to a full-time income, another way to buy more time. You have done outsourcing you might not know it, here are those things that you have done outsourcing:

  • Storage
  • Fulfilling orders
  • Customer service
  • Handling returns
  • Driving traffic

And here are the ways to do outsourcing:

  • Finding new wholesale accounts
  • Developing relationships with suppliers
  • Training new sources for books, RA, garage sales, or other places you find inventory
  • Training virtual assistants (VAs) to handle administration or sourcing tasks
  • Developing multiple streams of income

According to Warren BuffetIf you don’t find a way to make money while you sleep, you will work until you die.”

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