These days, setting up your own business is a breeze thanks to technology. The E-commerce sector is particularly easy to break into, particularly if you set up a store on a platform such as Amazon.
If you’re interested in starting your own Amazon business, below you’ll discover some of the key steps you’ll need to take.
What options do you have?
You generally have two options when setting up an Amazon business and that’s Amazon FBA and Amazon FBM.
An Amazon FBA business basically means Fulfilled by Amazon. With this type of business, you’ll sell the goods, but Amazon will deliver them. With an FBM business, it stands for Fulfilled by Merchant. In these types of businesses, you’ll be responsible for listing, selling and fulfilling the orders you receive.
For those looking for the easiest and fastest way to set up a business, the FBA model would be better suited. However, if you’d rather have control over the business, FBM is the best option.
What will you need to get started?
Although it is really easy to set up an Amazon business, there are things you’re going to need. Funding to get started is a key factor. You’ll need to invest in goods and if you’re fulfilling the orders yourself, you’ll also need to take into account storage space and shipping costs.
Unlike platforms such as EBay, listing products on an Amazon marketplace is free. You’ll only need to pay for the cost of shipping. Fees only start to apply for having an Amazon business, when you start to pay VAT. Even then, the monthly costs are kept low between £25 and £30.
Besides money, you’ll need to factor in a business name, logo, marketing and tax. Once you’ve set up the business, you’ll need to register it with the HMRC.
Setting up relationships with suppliers
If you are fulfilling orders yourself, you’re going to need to develop strong relationships with suppliers. One of the most important suppliers to focus on is shipping. This is especially true if you’ll be sending items internationally.
You can use sites like Parcel2Go to find the cheapest and best international shipping rates. Remember, cheaper doesn’t always necessarily mean better. It’s important to take into account the reputation of a supplier rather than just the cost.
Overall, setting up an Amazon business is easier than you might think. You’ll need to determine which type of Amazon business you want to set up. If you want to attract a high level of customers, you’re also going to also need to spend a lot of time marketing your services. Take your time to research the different types of businesses in order to ensure you’re choosing the right one to suit you.