In the pursuit of passive income, many entrepreneurs ponder the prospects of using FBA as a fulfillment service. Asking yourself if Amazon FBA the right platform for you is valid- you need to cover all your bases before you sign up for something. FBA stands for Fulfilment by Amazon, and it is currently home to more than 2 million people and counting worldwide who are using this platform to market and sell their goods.
It could be goods that you’re selling wholesale, or in bulk, goods that you made yourself, even pre-loved items that you no longer want can still bring in some money, so nothing goes to waste.
Here are 7 questions to ask yourself.
1. Are you passionate about retail?
Retail and commerce are all about buying and selling. If you love the online retail world, it only makes sense to take your passion further. Instead of spending money doing all the online shopping, you become the seller who is making money instead of spending it. With how easy it is to sell on FBA, the only thing left for you to do is find a product that you’re passionate about selling and take it from there.
2. Do you want to build a side hustle without much effort?
As far as passive income streams go, Amazon is once again the best in the business. This is a long-term side hustle that is dependable and a great source of extra income together with your regular 9-5 job.
3. How much capital do you have to be able to start a business?
Let’s be clear- whether it’s an online shop or a physical establishment, there is the requirement of substantial capital needed to start a business. That said, for anyone who prefers not to leave their house or spend a hefty sum every month investing in a brick and mortar establishment, then FBA is absolutely the way to go.
With Amazon handling the bulk of the shipping process for you, you could be vacationing in the Bahamas and not have to worry about your orders getting shipped out on time.
4. What are your primary reasons for signing up as a seller?
Like every other business, deciding to become a seller on Amazon should be done for the right reasons. This option might not be right for you if you’re hoping this will be a way to get rich quickly. We could use every ounce of brainpower we had to wish a shortcut to riches existed, but it doesn’t.
Selling on Amazon is easy, but it is not a get rich quick formula, and it is not the place for you to go looking for massive profits in a short amount of time either. Again, such a shortcut does not exist. You might want to rethink FBA as an option if you’re seeking a quick return on your investment too.
Business is still business, even an easy one like FBA. Profits and a return on your investment is going to take time. It will never happen overnight, regardless of what platform you choose to sell on.
Also read our article on Amazon FBA vs FBM.
5. Do you have the time and focus needed for a side hustle?
Sure, Amazon FBA is easy, and it’s one of the simplest ways to produce passive income. However, becoming a seller on Amazon still requires an investment of your time and quite a lot of it in the beginning, too, as you try to get your business off the ground. When they say selling on FBA is “easy,” it’s not in the literal sense. So, do you or can you invest at least 5 hours a day to get this running, especially in the first few months?
Before you get involved in this industry, you need to be prepared to put in the blood, sweat, and tears needed to make your business a success, like every single entrepreneur before you had to do when they began their business from scratch. The bottom line is you need a lot of patience to be an FBA entrepreneur. Leave the expectations behind and prepare to go into this business with an open mind and the willingness to do what it takes to succeed.
6. How much do you know about the product niche you plan on selling?
You may already have a product in mind to sell. You probably purchased products in this niche on your own before. But selling a product also requires knowledge of the industry. How much do you know about the community purchasing the product? What are they saying, and how can your product help meet their pain points? Are you in any forums or online groups where they discuss these things? What about suppliers? Have you done any research on them?
For instance, if you are looking for premium apparel fulfillment and printing fulfillment services, you can check out https://thrivescreenprinting.com/apparel-fulfillment-services/. Similarly, other fulfillment services are available for other products you want to sell on FBA, from clothes, shoes, skincare to anime, video games, to mobile home products.
7. How much of a challenge are you up for?
If running a business of your own comes with many risks involved, why would anyone want to do it? Why risk it all for something that may or may not succeed? That’s because, from a financial standpoint, living paycheck to paycheck is neither a sustainable nor suitable solution for many. The stress of worrying about how you’re going to stretch your finances out until your next paycheck will eventually do your head in.
Thanks to the ever-growing online retail landscape, now YOU have a choice, only if you are up for the challenge. Online retail has now become an indispensable part of our lives, thanks to the convenience it offers. Online retail has become an unstoppable phenomenon, one that any serious entrepreneur cannot ignore. It’s fast, easy, convenient, safe, and yes, it may be challenging, but it’s worth it in the long run.