Playbook #053: Amazon FBA (Fulfilled by Amazon)

🖼️ The Big Picture

We talk a lot here at Wealth Factory about 1) the importance of owning your own business, 2) how investing in your own business is often the most powerful thing you can do, and 3) why acquiring a business is one of the greatest opportunities available in the coming years. If this excites you, then Amazon FBA (Fulfillment by Amazon) is a route you should definitely consider.

Think of it like your own online Ecommerce “physical product” store, except Amazon handles payment processing and fulfillment (they pack, ship, and accept returns for your products). And of course, you’re listed on Amazon, which means you can be found by their very well trained customers.

There are multiple ways to start your own FBA business:

1. You can “private label” an existing product from a company like Alibaba and sell them in small quantities (or large for bigger discounts).
2. You can manufacture and sell your own products.
3. Some people successfully use arbitrage by buying products in bulk and selling them on Amazon at small markups.
4. You could also consider acquiring an existing FBA business. In recent years, it’s become a lot harder to start from scratch and compete with 5-year old brands. Buying a business gives you a leg up, because you don’t have to figure out challenges like:

• Which products will sell well
• How to use SEO and get customer reviews to rank high on Amazon
• Using paid advertising to drive more sales
• Sourcing products and figuring out manufacturing
• Developing brands
• And a lot more

As far as businesses go, there's an opportunity to run this somewhat passively once it’s going well.

And while some marketers will tell you it’s “easy money” because Amazon handles a lot of challenges for you, it’s still highly competitive… and there have been plenty of products that have failed. This can be a great game to play, but you still need to play it well.

And if you like the business model, but don’t want to be involved in operations? There are also private investments that pay out passive investors up to 20% annual returns. Of course, these come with all the normal risks of private investments, so do your homework.

If your Investor DNA involves a business background (or you have a desire to own your own business), Amazon FBA could be a very exciting opportunity for you.

🔢 By The Numbers

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