Amazon Private Label Launch 101: #1 Amazon Basics & Business Models for Pakistani Sellers

Amazon.com is leading the global e-commerce market, with a revenue of US$ 120,968 million in 2020 Worldwide. There are mainly two different fulfilment channels of Amazon.

FBA (Fulfilment by Amazon)
FBM (Fulfilment by Merchant)

Amazon has recently listed Pakistan as a country from where sellers can launch their business on Amazon using the FBA channel. This presents a huge opportunity for Pakistani exporters looking to grow their businesses internationally.

Fulfillment by Amazon (FBA) is a storage and shipping service that Amazon offers to help business owners sell their products. Businesses ship their products into Amazon's fulfillment centers, which are specifically designed for FBA services.

There are two types of accounts that can sell items through the FBA (Fulfilled by Amazon) program.

Individual
Professional

The Individual level is free, and allows users to sell on Amazon without paying a monthly fee, but you must pay a $0.99 per item fee for every item you sell. The Professional level is currently $39.99 per month. You still have to pay the referral fees and closing fees for the items you sell, but you do not have to pay the S0.99 per item fee, which means you can virtually sell an unlimited number of items with that $39.99 account.

There are three basic business models on Amazon.
Amazon Private Label
Amazon FBA Wholesale
Amazon Drop shipping

Amazon Private Label is about finding a product on Amazon that has high sales, but maybe a low number of reviews; getting that product, and labeling it as if it were yours. Basically, what you will try to do is to upgrade the presentation of that original existing product by creating your own brand.

Selling wholesale on Amazon involves buying bulk products directly from the manufacturer or supplier of the product at a discount, then selling them as a reseller on Amazon for retail prices. This model allows you to sell products from established brands with existing demand.

Dropshipping is an e-commerce method in which the seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when a customer buys the product, the seller uses their supplier to fulfill those sales. This practice is popular on e-commerce sites like Amazon.

If you would like to learn more about these models and how to successfully do business on Amazon, enrol in our course:
https://forms.gle/jYFzQ31uy3c4bZYt6

To stay updated about the latest e-commerce trends and how you can use them to your advantage, join our Facebook group:

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How can SMEs of Pakistan conduct business on Amazon in global marketplace & its good impact on economy of Pakistan