Anyone started a FBA (fulfilled by Amazon)business?

[Sarahbats]

I've been reading up a lot about starting a business specifically linked to amazon. The idea is you choose a product from sites such as Alibaba.com, rebrand with your own branding and then do all fulfilment/customer service via Amazon. Most of the books I have read I think have been written by Americans and the rules are possibly slightly different as they seem to suggest you can have it drop shipped direct to Amazon warehouse. However, on Amazon website it states that this is not allowed. I'm also unsure of the position of customs/imports duty. I have space to accept stock and then send to Amazon and don't mind doing the research, product search etc but not sure whether there are now so many people doing this that it has now become untenable. Anybody tried this? Any success?
thanks
Sarah

 

[Jon]

You see Dragons Den last night?

It had a woman who was basically doing this who came on the show with a valuation of 2million pounds when all she does is get an item made in china, shipped over and she logs it in the UK

She didn't own the IP obviously the warehouse in China did and she had sort of convinced herself that she had a 'business' when she had no more of a business than anyone flogging Avon / Forever Living / Ann Summers / Younique etc. gear.

Can YOU make money from it, YES

Is it a business, NO

Are you a basically a salesperson since all you've done in introduce a distributor in the chain of Make item in China > Sell in UK... YES YOU ARE

 

[Sarahbats]

No, didn't see Dragon's Den, take it they said no

I guess I'm wondering if the people really making money from this are the ones selling the books/webinars, etc on 'how to sell on Amazon' and that actually selling on Amazon has became very difficult for the smaller supplier. I think this happened with ebay to an extent, particularly with the change in fees with regards to postage. Many of the smaller sellers with cheap items were not making enough profit.

 

[Jon]

No, didn't see Dragon's Den, take it they said no

I guess I'm wondering if the people really making money from this are the ones selling the books/webinars, etc on 'how to sell on Amazon' and that actually selling on Amazon has became very difficult for the smaller supplier. I think this happened with ebay to an extent, particularly with the change in fees with regards to postage. Many of the smaller sellers with cheap items were not making enough profit.

Yeah the bottom fell out on ebay with the small items when they allowed china to sell direct to UK ebay users so there's no need for a middleman

 

[Pixieyrj]

Since so many people are do amazon review and pay RMB. What your saying I believe it is true. But I always believe that Ali express are rip you off on the price. You can find 10 time cheaper product on TaoBao and if you have big order, will be much cheaper.
Tax , yes, but it depends on what product. Also I will suggest you double check the legislation in UK because not all the product would meet uk standers.

Shipping may not hard if you can find a shipping company just simply book a container and fill up the staff. As far as I know the container campany can deliver from a business address to a business address. But you need think how to unload the pallet of staff.

I was think about drop shipping business just not amazon but very hard to choose a product. I will need to go to check to check the product first other wise the quaility is very Hard to know by the photo.

 

[homie]

Yes, you can do this but you need a niche product or some branding that will make people want to buy your product over any other. The market is saturated with people trying to sell widgets from china. You sell yours for £5 then Bruce puts his up at £4.95, then Fifi lists hers at £4.89 and so on until the only people who can make any money out it are the actual wholesaler from China themselves.

I've bought things from Alibaba before, mainly just small quantities for eBay and the quality can be hit and miss. Items are often made well enough but turn up scratched as if no care is taken of them in the factory or during the packaging process.

The thing I really dont get on Amazon are the people selling books for £0.01. I guess they must make money out of the postage charge but not sure it would be very much by the time all the other fees are deducted.

 

[Jon]

It's all just one giant race to the bottom..

which is sadly what it was years ago

and years before that

 

[Pixieyrj]

Yes, you can do this but you need a niche product or some branding that will make people want to buy your product over any other. The market is saturated with people trying to sell widgets from china. You sell yours for £5 then Bruce puts his up at £4.95, then Fifi lists hers at £4.89 and so on until the only people who can make any money out it are the actual wholesaler from China themselves.

I've bought things from Alibaba before, mainly just small quantities for eBay and the quality can be hit and miss. Items are often made well enough but turn up scratched as if no care is taken of them in the factory or during the packaging process.

The thing I really dont get on Amazon are the people selling books for £0.01. I guess they must make money out of the postage charge but not sure it would be very much by the time all the other fees are deducted.

the another part of the story is the same goods, the sale more expensive but pay people to review, when it become best seller...they gets buyers ......

 

[LTedeschi]

Yeah the bottom fell out on ebay with the small items when they allowed china to sell direct to UK ebay users so there's no need for a middleman

Haha

 

[Sarahbats]

thanks all, might put this on the back burner for the minute. You've raised the 2 points I was also concerned about, the race to the bottom and the variable quality.

 

[Jon]

thanks all, might put this on the back burner for the minute. You've raised the 2 points I was also concerned about, the race to the bottom and the variable quality.

Is it possible for you to give it a go without being open to too much financial damage?

 

[Sarahbats]

I think so, I would need a logo/basic website but I don't think this would be too much then a sample product. Again, this would not be too expensive. It then depends on minimum order but I think if the product wasn't selling on Amazon you can advertise it on ebay and then have it shipped by amazon (obviously extra fees involved as amazon and ebay to pay but if you get desperate to shift stock it is an option). I do need to find out about the import tax etc though as really don't know anything about that.