Amazon FBA or FBA for drop shipping?

Hello Everyone!

I was wondering if anyone had any advice on which program would be most cost effective/advantageous for drop shipping on Amazon ( FBA or FBM)?

I am brand new to this and was looking for some imput as to how I should set up my Amazon store. Any suggestions would be greatly appreciated.

Thanks!
Chris

Hi Chris and welcome to the forum,

Unfortunately I can't be of any help on this one, but hopefully some of our members may be able to share their opinions with you.

Cheers

I wish I had the answer. I'm new at this. The research I've done having accumulated many things to sell on FBM . IT MAKES ME RESPONSIBLE FOR CUSTOMER SERVICE, REFUNDS, MAD CUSTOMERS, PACKAGING, AN SHIPPING, AND YOU NEED STORAGE AREAS FOR YOUR PRODUCTS. MAKING SURE THEY STAY CLEAN AND READY TO GO out.

With FBA YOU SEND THEM THE PRODUCTS AND THEY DO EVERYTHING ELSE. AT A FEE. BUT IF YOU FIGURE THE PRICE OF STORAGE SHIPPING SUPPLIES HANDLING, RETURNS, ANGRY CUSTOMERS AND JUST HARDER AND MORE TIME CONSUMING. THE FBM IS WHAT YOU WANT. PEOPLE DO BOTH. TERRY TESTING BOTH OUT AND SEE FOR YOUR SELF WHICH WORKS BETTER FIRE WHAT YOUR TRYING TO ACHIEVE. HOPE THAT HELPS SOME. UTUBE HAS GREAT VIDEOS BY WHILE SALE TED ON ALL ASPECTS OF AMAZON. GOOD LUCK

Sorry for the misspelling. My phone went crazy

gabbiesmeemee1 wrote:Sorry for the misspelling. My phone went crazy

:)

No worries Gabbie. I know how it is (I hate aut correct :)). Thanks for taking the time to respond.

I've actually started doing FBA doing RA, but it is a bit of a hassle going out and constantly trying to find deals and keeping money coming in, which is how I ended up here (by watching Wholesale Ted videos, btw). I want to find a good source of profitable items I can sell on Amazon. Since I am very limited on capital right now, drop shipping seems the perfect way to go for me. The only problem (and everyone else's, I suppose) is finding the perfect product. One in a good niche, with little competition, high sales volume, and good profit margin. It seems like a search for the Holy Grail at this point. Gotta keep looking!

Once I find those products, it would perhaps be best to have them shipped directly to Amazon FBA, thus avoiding customer service complications and storage issues with regard to inventory (best of both worlds).

Anyway, hope your business is going well for you and everyone else on Salehoo!

Chris

Hi Chris,

You're quite correct in so much as most people are chasing niche markets these days. However, finding that magic combination of little competition, high sales volume and good profit margin is harder to find than a bag of Hungarian Chicken's teeth.

Little competition (very possible) good profit margin (possible) high sales turn over (next to no chance)

As soon as a product has a high turn over, it attracts big competition because of that sales volume. That level of competition then brings the price down, so the good profit margin then disappears as well and your niche market then disappears overnight.

The best you can aim for in reality is two out of the three and be happy if you can find that because having a slower sales turn over will usually protect that market from major competition and have it remain more niche.

The big trick to using a niche market model is to not just find one niche, but many. That way you increase your margins by variety, while your niches are still protected due to the slow sales volume.

In other words, your not putting all of you Hungarian Chicken's eggs in the one basket!

Thanks for the Advice Mark! Just like in the stock market, diversification seems to be the name of the game here.

Yep, spot on.

Finding one niche market is good, getting 6 or so is even better, but if you're lucky enough to get into more than 10, then profit margin and high turn over become far less important and that's a big part of using niche markets for long term success.

Spread those eggs around :)