Hi, guys in the Water House.
This week's video is about how to sell on Amazon
and most importantly, the most important task
of choosing the correct Amazon strategy that says you
and most importantly, your circumstances.
The best, the top three
most popular Amazon strategies are Amazon, F B F, BM
and Amazon Drop Shipping.
I'll explain all three and also show you the data
from Google showing which one is now the big mover
and shaker.
All three
of these Amazon strategies have their pros and cons.
Some required outlay, thousands of dollars for inventory
and others require less than a hundred dollars.
This is why it's critical to your success.
If you look, just focus on the strategy that suits you
your goals and your circumstances the best
if anybody near this channel.
My name's Neil Waterhouse.
I've been selling online for full-time for 24 years.
I'm the author million dollar eBay business
from home Creative Drop Ship Formula, and I've been selling
on Amazon around the world for 22 years.
So let's launch straight into it.
First, the pros and cons of Amazon fba, fbm
and Amazon drop shipping.
FBA is short for fulfillment by Amazon.
Fulfillment by Amazon means
that you send your inventory to an Amazon warehouse
and every time one of your items sells
Amazon packs up your item and ships it to your customer.
Amazon also with FBA, looks
after your customer support for you.
That's the good part.
The bad part for a lot
of people is you need to have enough funds to
purchase the inventory to send to Amazon
and if you want to build an Amazon business to
replace a full-time income, you'll need on average tens
of thousands of dollars to spend on inventory.
The other negative with Amazon FBA is
if one or more of your product lines does not sell
you'll either need to substantially drop the price
possibly below your cost price or, and
or have Amazon ship the products back to you
because if you just leave them in the Amazon warehouse
Amazon will start charging you a monthly fee
for all the items that are not selling.
Next is Amazon fbm.
FBM is shot for fulfillment by merchant.
In other words, fulfillment by you
or me is we are the merchants.
So with Amazon fbm
you list your items on Amazon, but when they sell
you box 'em up and ship 'em to your customers yourself.
The good parts of FBM is
because your warehousing the product yourself.
You can also list the same product on multiple platforms
like eBay, catch Kogan, your own Shopify store, et cetera.
So whenever you get an order
from any of these platforms, including Amazon
you can ship the stock straight to your buyer.
The downside of FBM compared
to FBA is that you need to warehouse thery yourself
and then every time another product sells, you
or your team have to box it up and ship it to the customer.
You can also though use a third party logistics company
known the industry as three pls to warehouse your products
for you, and the three PL will ship the products directly
to your customer.
The big downside for a lot of people with FBM
like FBA is you need enough cash upfront to
purchase inventory before it sells.
This leads to the third Amazon strategy
and that is drop shipping.
Drop shipping is now the big mover and shaker
and this is due
to technology that is now available to automatically
check your local supplier's inventory levels, as well
as low cost overseas virtual assistance from $1 per hour.
Over the last five years
we've seen a big movement to drop shipping
not just from online sellers
but also with traditional bricks and mortar stores.
The big advantage of drop shipping is
that you only purchase inventory
from your suppliers after you get a sale.
Then after your customer pays, you place the order
with your supplier and your supplier boxes the item
up and ships it direct to your customer
so you never see or touch the product.
The other big advantage of drop shipping is
that you can work from almost anywhere on this planet.
You can literally run a drop ship business
from a yacht in the middle of the ocean.
All you need is access to the internet
and with the latest generation of S phones
this is pretty much everywhere, way
from above ground because you don't hold any inventory.
The size of business is not limited
by how much cash that you have.
A drop ship business is cash flow positive
as the customer pays
before you purchase the inventory from your suppliers.
The downside of drop shipping is profit margins are
on average, one third lower than importing.
However, even if your margins are only half of what they are
with F B R fbm, you can list 10 times or a hundred times
or a thousand times more products than other people
because you're not limited by your bank account.
This is why not only online businesses have moved
to the drop ship model, but also why more and more
traditional bricks and mortar businesses every day
are moving to the drop ship model.
Dropshipping for traditional bricks and water businesses
means they don't need to lease a bigger warehouse
and hire more staff and also increase their overdraft to
purchase more inventory.
With drop shipping, you don't hold any inventory
so you don't need a warehouse, so you don't
need an overdraft, and you don't need to employ packers
and best of all, you don't need to purchase any inventory
until it's sold.
So the next step with your journey of learning how to sell
on Amazon is to choose which strategy suits you
and your circumstances the best, Amazon fba, fbm
or drop shipping on Amazon.
If your preference is Amazon fba, the next step is to
watch this video up here.
If you prefer Amazon fbm.
The next step is to watch this video down here, or
if you prefer Amazon drop shipping.
The next step is you need to watch this video up here
and I'll also put links
at the very end of this video to those videos.
If you have any questions at
All, all, please leave them in the comment section below.
Until next week, stay safe.
Li Elmore, this is your Waterhouse.