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Time Tested Proven Method for Selling on Amazon

Selling on Amazon Training Course Review FBA vs Dropshipping

By Michelle Breuer, September 26, 2019

I started my online Amazon business in March 2015 and recently sold my store after generating millions of dollars in sales.

People always ask me how to get started online, how to open a store on Amazon, how much does it cost to sell on Amazon etc.

Recently I had a call with a friend who wanted to know how this "Amazon Thing" worked.

After summarizing the two different Amazon Business Models that I have done it helped him get started so I decided to write about it for those of you who may be considering starting an Amazon Business online.

Dropshipping on Amazon vs Amazon FBA

Dropshipping is how we started our Amazon business it is referred to as Online Arbitrage, sell high then buy low.

We would source products from the big online retailers and would list them for sale on Amazon if we could make a profit.

When someone purchased a product we would order the product from the online retailer and they would ship the product directly to the customer.

That was the business model in a nutshell and why it is so easy to start.

The benefits to the online arbitrage model are pretty obvious:

  • no upfront inventory cost
  • no storing inventory
  • no shipping expense

The Cons

  • low profit margins generally
  • In order to scale and grow the business a team of VA (virtual assistants) in necessary.  We had about 15 at one time the more you grow the more you need to hire.
  • customer service can be a nightmare because not only are you the middleman in making the sale but you are also the middleman in the complaints and returns department
  • You need great software to manage your virtual inventory and keep you in good standing with Amazon and great means expensive.
  • Technically dropshipping is against Amazon's Policy

I think the biggest problem with dropshipping on Amazon nowadays is the competition.  It is such an easy business to start so the marketplace is being flooded by new sellers.

Unfortunately many do not know what they are doing and continue to drive prices and profit margins down.

First Year Dropshipping on Amazon

This method is where you find items that you can sell on Amazon for a profit.  You order from the distributor and ship the items into Amazon.  Amazon then fulfills and ships all of the items out to the customer. They then pay you your profit after all fees.

FBA PROS

  • Amazon does all the fulfilment
  • Amazon Stocks the inventory
  • Amazon deals with all of the customer service and returns

FBA CONS

  • You have to buy inventory upfront and hope it sells, high risk if you don't know what you are doing
  • You need to find and build relationships with reputable and dependable suppliers
  • You need a way to determine if an item will sell, how often and at what profit
  • You either need to personally prep the items being shipped to Amazon or have a reputable prep center do it for you

The risk of losing money on bulk purchased inventory and the uncertainty of what products to sell is why I stayed away from the FBA method for years.  It was only when I was introduced to Todd Snively and Chris Keef and their Ecomm Elite program that I even considered it.

Watch the Free Case Study here at Ecomm Elite

Ecomm Elite 3.0 is a comprehensive online training course that teaches people how to sell on Amazon FBA and this particular method removes most of the risk and solves many of the issues mentioned above.

​Because of the unique method that is taught people need not fear about getting stuck with thousands of dollars of inventory that they can't sell.

  • In Ecomm Elite 3.0 you are taken step by step on how to set up an Amazon FBA store.
  • How to set up a business entity that is right for you
  • How to find and contact reliable distributors
  • How to scale your business and determine profitability.
  • How to use their proprietary software to analyze thousands of products and confidently choose products knowing the profit they can produce.
  • How much product to order to ensure you will not get stuck with excess inventory.

This webinar will reveal the unique strategy that Ecomm Elite members are using to start and run successful online businesses Ecomm Elite

The creators Todd and Chris have been selling on Amazon since 2002 and have been coaching people using their methods since 2014.

​I was fortunate to personally get to meet Todd and Chris at a live event last summer and I can honestly tell you that these guys are the real deal.

Josiah Testimaony Ecommelite

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