The FBA Business Model (Free Amazon Course Video 1) Video Lecture | Start an Amazon FBA Store: Learn and Build - Home Business

what's up guys and welcome to the first
official video for my free course so in
this video I'll be going over the FBA
business model for those of you who
don't know how Amazon works so this is a
good way to understand the model before
you actually follow through the whole
course and if you're thinking about
buying another course as well on top of
this it'll help you decide if that's
something you're really interested in
but after this whole free course is
released I don't think you'll need to
buy any other courses which I'll cover
pretty much everything you'll need to
get started anything on top of that it
will just be extra and bonus knowledge
for you so let's get straight into the
video if you haven't subscribed to my
channel make sure to subscribe because
i'll be having new course videos coming
out every single day sometimes multiple
times a day so hit that notification
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these videos are coming up okay so the
FBA business model the Amazon FBA
business model is very different from
pretty much anything else online it's a
really attracted me to it and what makes
it so powerful the way that the Amazon
FBA business model works is you are
buying inventory but you never have to
touch it yourself it actually goes to
the Amazon warehouse and they process
the shipments of the orders for you so
what you would do is I would find a
product using the tools that I'll refer
to later on tell you just software to
help me find a product that sells well
on Amazon and there's already performing
well so I know the demand is there and
there's opportunity to sell that product
once I find that product I'll source a
supplier or manufacturer in China so
I'll go to Alibaba is usually the case
you can also use DHgate
and you'll find someone who already
manufactures that product and what
you're gonna do is you're going to
negotiate a deal with them and order
that product when you're ordering that
product you may choose to have your own
packaging what you should definitely do
or even put your own label on that
product so you can just design a logo
and brand name yourself or you can have
someone do it like through a website
like five over fibre but you're
ultimately creating your own brand with
that product so you're gonna order that
product and instead of shipping it to
your house you're gonna ship it directly
to the Amazon warehouse so once you ship
it to the Amazon warehouse
I've already created a listing so the
product will already be on Amazon's
website once Amazon receives a product
in their warehouse on either amazon.com
or CA or Amazon on a European site
they'll have your inventory in stock and
when someone was on their site and buys
it they'll process that order you'll get
a notification that you've made a sale
and then they will ship that order out
to that customer if that customer has
any problems with that product they'll
strip it back to the Amazon warehouse
but you never have to deal with returns
you never have to deal with actually
packaging to ship to the customers your
manufacturer will put it in your
packaging they'll ship it to the Amazon
Amazon will pack it in their Amazon box
and they'll ship it off to the customers
for you so that's what makes this
business model very flexible so you
don't have to spend as much time
packaging and worrying about packages
for this the service offered by Amazon
of course they do charge a fee so FBA
stands for fulfillment by Amazon which
means that they are fulfilling all your
orders for you so they'll be taking 15%
off the top and then plus storage fees
which I'll get into later in this series
that's basically how the business model
works
you should mean from your manufacturer
directly to the Amazon warehouse which
goes directly to the customer in between
you have to order a sample and it will
go to you and some other minor details
but I'll show you guys as we go through
this whole course how can go about doing
those things but that's all there is to
the actual FBA business model
you