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Online Business
Amazon FBA
A service where Amazon stores your products in its warehouses, picks, packs, and ships orders for you, and handles customer service — letting you run an e-commerce business without touching the inventory.
There are several ways to use Amazon FBA: retail arbitrage (buying cheap, selling at full price), wholesale (buying from established brands in bulk and reselling), and private label (creating your own branded product — usually manufactured in China via Alibaba — and building a brand on Amazon). Private label is the most scalable and valuable long-term but requires more upfront capital ($2,000–$10,000+ for initial inventory) and more strategic thinking around product selection and differentiation.
Amazon charges FBA fees for fulfilment (based on size and weight of each item), monthly storage fees, and takes a referral fee (typically 8-15% of the sale price depending on category). Successful FBA sellers obsess over product research — finding niches with high demand, low competition, and strong margins. Tools like Helium 10 and Jungle Scout are used to analyse search volumes, competition, and estimated revenue before investing in any product.