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At its core, Amazon FBA allows sellers to list their products on Amazon’s vast marketplace, while Amazon handles storage, shipping, and customer service. Sellers can source products locally—often at discount stores like Walmart or Home Goods—and resell them at a premium on Amazon. However, the reality of executing this business model is often far more complex than simply finding bargains and flipping them online.
Three Primary Models of Amazon FBA
Through extensive research, the seller identifies three primary methods of Amazon FBA:
- Branded FBA: This involves creating a unique brand, sourcing products from manufacturers, and marketing them on Amazon. The downside? Significant upfront capital investment and the challenge of establishing brand awareness.