Can You Increase Sales With Amazon FBA?

Ecommerce is an excellent opportunity for small business owners. One way to use e-commerce with great success is through Fulfillment by Amazon (FBA) and the use of Amazon arbitration, which we’ll explain in more detail here.

With the FBA business model, you don’t need to spend a lot of space or have your own website or warehouse to build your own eCommerce empire.

Here to talk more about it is Kristin Ostrander, founder and CEO of Mommy Income. She sits down with Shawn Hessinger, the executive editor for Small Business Trends, to talk about building an online business with FBA Amazon.

For more information about Kristin Ostrander, visit Mommy Income at

What is Amazon FBA?

Shawn: What exactly is FBA and how does it work?

Kristin: Amazon FBA is fulfillment by Amazon. Let’s say you have a Shopify store and want to move it to Amazon. What happens is Amazon gives you a specific label that you put on all of your products, and you ship it all in one giant box or multiple giant boxes, pallets, truckloads, whatever.

You send it to Amazon and they distribute it to their warehouses so that when your Amazon Prime customer wants two days of free shipping, they order from Amazon as they usually would. Then Amazon takes your product and ships it to your customer.

So they execute all your customer orders instead of you.

Like right now, I’m probably selling something on Amazon. And Amazon does the work — they pick it, pack it, and ship it all, allowing entrepreneurs, sellers, and everyone else to do important things, instead of fulfilling shipping orders and having warehouses and all that stuff.

Shawn: How do you start with this; what is the first step?

Kristin: The first step is deciding how and what you want to sell. If you already own a product or brand, and maybe you’re even in stores and want to take your brand to Amazon, sign up for their fulfillment program — or even just be a seller on Amazon.

She adds that you don’t have to use Amazon’s FBA, but most people choose it because it gives you access to all Prime customers.

If you choose to handle your items yourself, you must store them in your warehouse or your own facility – and then distribute them to every customer who purchases them. So that’s kind of the difference between what they call Merchant Fulfillment and FBA.

But if you just bring your brand to Amazon and want to do FBA, sign up and go to their sales on Amazon, you can literally type that into Google “sell on Amazon”. Then you can follow their step-by-step process.

She explains that it’s not complicated to start selling on Amazon, but it’s not as simple as taking a few photos on eBay, sending the stuff in, and then you’re good to go. To verify it’s you, they do things like ask for your passport and go to a Zoom interview where you hold your driver’s license next to your face to prove it’s you.

She says they are killer about this because there have been bad players who have opened multiple accounts.

So getting started is just signing up as a seller, and having a product puts you ahead of the game. If not, then you should start by looking at the products you want to sell and get started that way.

What is Amazon Arbitration?

Shawn: Is there another way to sell with Amazon that sellers might want to try first?

Kristin: Amazon has many different ways, methods and business models. For example, one of the things most people start out with in the beginning is retail arbitrage, which involves frequenting regular stores like Target or Best Buy and buying and selling things off their shelves on platforms like Amazon.

She adds that it breaks the ceiling, but there are people who make millions of dollars doing Amazon arbitration. So imagine: many people earn a decent living selling their items while at home browsing the internet for offers to flag and sell in their jammies.

Kirstin says another model has your own private label brand. These sellers have created products that they sell on Amazon. Then you have your regular wholesale model. It’s what typical brick and mortar stores do; they buy in bulk and mark it up and sell it in their store. You’ll be doing the same thing with FBA, except you’re going to do it digitally.

Kristin continues that she uses a unique hybrid model that combines the private label concept and wholesale. In addition, she has made her own model which she calls a ‘bundle gift set’ or ‘accessory pack’.

Kristin gives an example: Suppose you have a Dodge Ram that needs seat covers and other things. She says she’s putting together an accessory kit with about five common items to sell. She adds that she combines products that people buy anyway.

How does she find out what those items are? Find out that and more when you watch the rest of the interview.

Learn more about selling on Amazon

Make sure to learn more about how to sell on Amazon and how to be an Amazon FBA business owner by watching the second part of the video. There you will find useful and useful tips, such as:

How much to invest, what equipment to buy, etc. to start your FBA. Where you can learn how to be an FBA salesman without resorting to mining through a bunch of DIY YouTube tutorials. How to Pick a Niche Item to Make Money on Amazon. How to easily and cheaply market your items as an FBA seller. How long it will take to expect a return on your initial investment.

Let us know in the comments what you think of the video and if you’re thinking about becoming an Amazon FBA after watching it.

Listen on SoundCloud:

Follow us on Google News for the latest news.

More in: Little Biz in 15
This post Can You Increase Sales With Amazon FBA? was original published at “”

Leave a Reply

Your email address will not be published.