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What are amazon business models ?


What are amazon's best business models?


Types Of Amazon's Business Models:


1. Retail Arbitrage.

Seller list a product on Amazon, so when he receives an order he buys that product from Wall Mart or from any other platform, and then he ships that product to the customer. (This model is currently banned from Amazon and eBay).

2. Dropshipping.

In this model, the seller is in touch with some wholesale dealers and gets resellers to certificate from them and then lists the product on Amazon, so whenever he receives an order he will ask his wholesaler to ship that product to the given address. (This model is not safe because Amazon can ask you anytime to give the documents and invoices and there is a chance of account suspension). Be careful before you start Dropshipping.

3. Wholesale FBA.

In this model, the seller is also in touch with some wholesalers and brands and get authorized reseller certificate from brands. So after that, he buys a small number of products and sends them to AMZ FBA, so that AMZ will pick, pack and ship that product. (If u don't have an authorized reseller certificate and invoices your account will be suspended).

4. Amazon Private Label.

In this Amazon Business Model, the seller builds his own brand. He manufactures products from suppliers and then prints his own private label on the product so that no one can hijack his product. It has all the legal rights to this product and brand. 
It has two routes:-
A. FBA- Fulfillment By Amazon.
B. FBM- Fulfillment By Merchant.


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2 Comments

  1. Great I got to know and i should go for FBA model.

    Is that ok ?

    ReplyDelete
    Replies
    1. Yess FBA model is best if you are managing your business and you have your own products

      Best of luck

      Delete