What is Amazon FBA and Arbitrage?

Fulfillment by Amazon is where you send products to Amazon's Fulfillment Centers, Amazon then stores and ships your products directly to the customer for you.

As opposed to traditional reselling on Ebay, Mercari, or Poshmark, the items are brand new and you don't have to go through the lengthy process of creating unique individual listings or taking photos.

The major benefit of FBA is once you purchase, process, and send the item to Amazon, it's completely hands off. You don't have to figure out shipping costs or go out of your way to make quick runs to the post office after every sale.

With FBA, products are only in your possession until you send them in, so no large piles of inventory you're waiting to sell are cluttering your home or office.

Sounds great, but what do you sell on Amazon?

Anything! With the Arbitrage model of selling on Amazon, you sell any new, name-brand items that can be bought for cheaper at stores as simple as Walmart or Target. Shoppers turn to Amazon for convenience of delivery right to their doorstep and Amazon relies on individual sellers to help provide its large catalog of items to their customers.

Unlike other models of selling on Amazon like Private Label, where you design and manufacture your own item, there's no large order minimums or international shipping involved. You could get started selling in a week for only a couple hundred dollars with arbitrage.

People already know, trust, and turn to Amazon for brand name items. That means you have an organic reach to millions of shoppers without having to spend a dime on advertising.

Once you're ready to learn and research selling on Amazon, I recommend you look over my Amazon Glossary to easily identify key concepts and acronyms in the Amazon Business.