Guide to Amazon Core Selling Concepts : Difference b/w ‘Fulfillment by Amazon’ and ‘Dropshipping

This is not about earning from Amazon’s Affiliate Program as affiliate program is not everyone’s cup of tea. And not everyone is making a profit through it. It doesn’t mean that Amazon affiliate program is not worth it as many of us made huge revenue but some were not able to do it and simply did quit. This is due to ignorance of Amazon procedures or the lack of knowledge about the core selling concepts of Amazon.

Amazon offers more things other than affiliate program:

 

You may have heard terms like fulfillment by Amazon, dropshipping.

Let us assume that you are a seller. You have goods in stock and want to sell. But you don’t have an e-commerce site nor do you intend to spend money and time for one. Moreover, you don’t have money to invest in advertising. In that case, you sell your stuff through Amazon, by becoming one of Amazon’s sellers.

Now you get a ready-made e-commerce platform, marketing or traffic that is pre-generated and free as Amazon has millions of subscribers.  All you have to do is list your product and wait while it sells.

You can decide your profits, unlike the affiliate programs. Yes, you got it right. This is not anything new. Many sellers are already earning thousands by this process.

There are two methods of Amazon Selling Concept:-

 

  • The concept of Buying from Amazon:

Amazon Associates - Affiliate Program

If you want to sell products but you don’t own any product, or you don’t have any stock. So there is one thing you can do. You can still sell products of others already listed on Amazon.

Yes, you heard it right, you can sell the products of others and make your profit by selling them. For this, you have to open a seller account on sites other than Amazon, like eBay. Then you list the Amazon’s product on eBay with your profit margin added to the price.

ebay-online sopping

 

When your item sells, you buy it from Amazon paying Amazon the price of the listing, leaving behind your profit, which remains with you. And then at checkout page on Amazon, you mention the shipping address of your eBay customer so that the item would be delivered directly to your customer.

In this way, you don’t need to practically own any goods and buy it from Amazon, so that is this process got the name buying from Amazon concept.

Now let’s move to the second part of Amazon Core Selling Concepts

  • The concept of Selling from Amazon:

This is completely opposite of what we discussed above. Here if you have your products and goods to sell. You don’t need to buy anything from Amazon. You only need to sell these to your customer. And now you don’t need to go on others sites searching for a customer to sell products. You can sell on Amazon itself signing up as Amazon’s seller.

Amazon provides FBA known as Fulfillment by Amazon. In this service, they provide shipping service to sellers who opt for it.

In this service you can store all your goods in Amazon’s warehouse also called Amazon Fulfillment Centers. When your product sells, Amazon packs the item from the warehouse for you and ships them instantly directly to your customer on the behalf you, that’s why there are shipping charges for a product. They handle all packing, delivery and customer service for you right after the sale confirmation.

As Amazon has blazing fast delivery service, it eliminates any delay in delivery of goods to customers as. It builds trust between customers and sellers and helps Amazon to be the most loved brand worldwide.

This Fulfillment by Amazon is not only for amazon’s sellers but they also ship for sellers and e-commerce owners who are not using Amazon platform to sell their goods. The only thing you need to do is to send all your stock to Amazon Fulfillment Center, and pay their monthly rent, and that’s all. When you get any sale, just inform them, and Amazon delivers the product to your customer’s address.

Difference between ‘Fulfillment by Amazon’ and ‘Dropshipping’ :

Many people think that ‘Fulfillment by Amazon’ and ‘Dropshipping’ are the same concept. But in reality, Dropshipping is a totally a different concept. It is a process in e-commerce in which seller doesn’t need to keep any products in stock. Instead, they are in contact with a wholesaler who has his own huge stock of products and goods, and he also ships for you. You just need to promote the wholesaler product with your profit margin.

Now you must be wondering which category ‘Dropshipping’ falls out of the two I mentioned above. Well, it does not fall to any. As now you already know that in fulfillment, you have your own goods and sent to Amazon warehouse and in contrast, in drop shipping, you don’t have your goods.

Also Read:

50 Best Top Shopify Stores : Most Successful Shopify Stores

Oberlo Review 

 Shopify e-Commerce Stores – How People Making 100000$ Per Month

Wix vs Shopify vs WooCommerce vs BigCommerce

Amazon doesn’t provide Dropshipping. It only provides Fulfillment.

Conclusion: Guide to Amazon Core Selling Concepts : Difference b/w ‘Fulfillment by Amazon’ and ‘Dropshipping

Amazon will provide the Affiliate Program but many of us did not able to grab this opportunity because of lack of information and knowledge. All you need to do is follow this article and be the part of Amazon Selling Concepts and earn good amount of money. Let me know if you are using Affiliate Program on your site along with your feedback. And don”t forget to share this post on all trending social media platform.

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About Shubham Singh

Hey, Shubham Is Full-Time Blogger and SEO Geek, who loves to talk about SEO, WordPress, Blogging, and E-commerce on his blog GoTechBros. He believes in helping other in every way possible. Get In Touch With Him On : Twitter, Google +, Instagram

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