Amazon "FBA" (Fulfillment by Amazon) is a service offered by Amazon, whereby you are able to stock your own products in Amazon's warehouse network.
The reason you'd want to do this is predominately due to the way in which you're able to make a significant amount of money by being associated with Amazon – having their audience & social clout behind your brand.
Whilst you do not need to be part of the FBA program to sell products on the Amazon platform, it's quickly been identified as the most efficient and scalable way to achieve profit through a digital business which actually does not need a huge amount of overhead to get started.
This article is going to examine the way in which you are able to take advantage of the "FBA" program – as well as "Amazon" generally – to make significant profits by selling products to consumers and businesses alike.
How To "Make Money" With It
The art of making money comes down to a simple process – earn more than you spend. This is as true for business as it is in the "personal" realm.
The problem for most people is they end up spending more than they earn; or end up with all sorts of other issues which not only detracts from their focus, but ends up draining their resources.
Indeed, one of the biggest problems facing small business owners has actually been what's known as "barrier to entry" – which is basically how much resources are required to take advantage of an opportunity.
For example, to create effective software, you generally need at least 10 years of prior experience, with a particular expertise developing out of it.
On top of this, you also need market demand and the ability to provide a valuable product regardless of the various market conditions existing at the time.
Amazon – and retail in general – needs none of this. You only need a product which fulfills market demand, allowing users to find it and purchase as required. Whilst you could do this with your own e-commerce outlet, the weight of Amazon's brand & its associated trust is by far more important in helping secure the effective means by which you're able to attract real buyers.
Is FBA Really Necessary?
Ultimately, FBA is only a "method" through which you're able to stock products on Amazon & have them take care of all the delivery.
Most people do not need to use the "FBA" route; they can just sell their own products and ship them from their home / office. You can still do this without actually sending packages to Amazon to send out on your behalf.
The most important thing I would recommend is the "FBA" stuff is mainly focused on the way in which a product owner is able to basically delegate all of the packing / shipping of a product to Amazon – allowing them to focus on getting it spotted / promoted.