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Across the country in 2022, there are over 27 million e-commerce users—that accounts for 75 per cent of the Canadian population—and, despite economic uncertainty, e-commerce sales are expected to reach $104 billion by 2025. By the end of this year, the Canadian market is forecast to grow by 15 per cent, and Amazon accounts for about 30 per cent of it. Suffice it to say the potential benefits are plentiful for anyone looking to become an Amazon FBA seller. If you understand the market and the niche your business could fill, and you have a strong business plan, selling on Amazon could be a lucrative opportunity.
After the significant surge in 2020 when a swing toward digital kept some businesses afloat, e-commerce has continued to grow well into 2022. If the practicalities of leasing a brick-and-mortar storefront have prevented you from starting a business, you can pivot, too. You could create a thriving enterprise online through Amazon’s FBA or dropshipping models, especially if you do your homework. Learn how with Amazon dropshipping and private label courses. These 97 hours of instruction could be the nudge you need to take action.
What is Amazon FBA?
Potential Amazon shop owners have two major options: Amazon FBA and Amazon dropshipping. With Amazon FBA (Fulfilled by Amazon), you ship a product in bulk to an Amazon facility. Then, whenever someone orders that product from your shop, fulfillment—the storage, labelling, boxing, shipping, returns and customer service—is handled by Amazon. Pricing varies based on units sold, but FBA allows you to distribute your product with less overhead than if you had to arrange it all yourself. However, FBA requires more upfront costs than dropshipping.
Amazon dropshipping, sometimes known as FBM or Filled by Merchant, does not require you to own any products. Instead, your storefront acts as a middleman between a manufacturer and the customer. The dropshipping model requires you to facilitate the purchase of goods you did not create, merchandise them, and advertise them; then they’re shipped directly from the manufacturer to the customer. Essentially, Amazon hosts your online store, and you never deal with inventory hands-on.
By using Amazon FBA or dropshipping for your business, you would be outsourcing many of the large structural costs to Amazon. Though you may be hesitant to entrust your fledgling business to another organization, many entrepreneurs thrive as Amazon sellers. For example, top Amazon.ca seller Round3CA has received over 100,000 reviews in the lifetime of their Amazon store, of which 96 per cent have been positive in the last 12 months.
Preparing to launch your own Amazon store
Starting a business is rarely simple; there’s data to be gathered, products to be sourced, and research to be done, among various other things. In 2021, the Financial Post reported on questions a startup entrepreneur should answer before launching their business. Though the goals of a small business and a startup differ in the long term for funding and investment opportunities, many of these questions for startups lend themselves to the big-picture demands of launching a small business, even one that’s entirely online.
Among the first recommendations for entrepreneurs is to conduct a market study, and this Amazon FBA online training offers two courses that may help you do exactly that: Google Trends for Insane Growth for Your Business & Brand and Find Your Perfect Customer & Design and Create Your Products & Services. Across the lessons in these two classes, you’ll find tips for how to use a free online data tool for market research, identifying your “ideal customer,” and crafting content for that buyer persona.
Base your Amazon business approach on the type of goods you’ll sell
Round3CA, the previously mentioned top Amazon.ca shop, sells video games and electronics. Rarewaves-CA, the second-most popular shop, sells electronics and a hodgepodge of other home goods and toys. Other popular Amazon retailers market books, fashion, crafts, and more. Depending on what you choose to sell, the logistics of setting up your business may vary.
For years, Amazon has accounted for approximately 64 per cent of worldwide print book sales, but plenty of savvy entrepreneurs have started selling books on the platform. If that interests you, then one of your first steps should be studying Amazon’s bestseller list. As you look into what types of books you may want to sell, you can also study Amazon FBA Reseller Pro, a six-hour course with instructions for sourcing and selling books for a profit, identifying which books should be shipped to FBA centers and methods for selling without taking up too much of your time. Amazon began as an online bookstore, so you could be following in a rich tradition by creating your own Amazon FBA bookstore.
Amazon has its own category for handmade artisanal goods. Selling on Amazon Handmade still lets you use Amazon FBA, and users reported an average profit margin of 26 per cent in 2021. If you’re interested in offering bespoke products on Amazon Handmade, then you may also want to learn more about developing, marketing, and selling your products—three topics that are covered in Launch a Successful Amazon FBA Brand. This course is taught by Benjamin Wilson from Entrepreneur Academy. Wilson is an entrepreneur from Melbourne with experience creating marketing strategies for Facebook, Instagram, and Amazon FBA.
Your FBA or dropshipping business idea may not neatly fit into the same categories as other popular stores, but you could still benefit from studying proven strategies for launching, selling, and growing private-label products on Amazon FBA. In The Last Amazon FBA Course: 2021 Private Label Guide, you’ll get 50 hours of instruction on everything from labelling and shipping your product, ranking for relevant keywords within an Amazon search and more.
Leverage Amazon FBA or dropshipping and join the e-commerce boom
If you want to start an online business, selling through Amazon with FBA or dropshipping could be an accessible way to grow and cultivate a strong, active buyer base. Though there are many opportunities for creating a thriving brand on Amazon, getting started may be difficult without a thorough guide. This 11-course Amazon Dropshipping & Private Label Master Class Bundle could help keep you informed as you begin your Amazon business venture, and right now, you can get it for $45.99.
Prices subject to change.