We Sell The Products, Amazon Delivers
FBA stands for “Fulfillment By Amazon”. Our team will open distributor contracts with manufacturers in the USA and ship those products to an Amazon Fulfillment Center. Amazon delivers each individual order with their Prime One Day / Two Day Shipping Guarantees.
We also own our Warehouse Network and prep products for you for much cheaper rates than Amazon will so you always have a higher ROI
Our team will open multiple distributor contracts to ensure we diversify our product offering. Your store will sell products from multiple niches such as Cosmetics, Pet Supplies, Appliances, Electronics, supplemetnts, gun accessory supplies and more.
If you have a high cash budget , we can approach a small - medium size brand on Amazon that currently sells 1000-5000 UNITS per month and become the sole distribution source of their product on Amazon. We handle their compliance department requests, product safety requests, trademark registry, we do everything for them, and in turn they ONLY sell products to you. Your business is the exclusive seller of their products on all of Amazon.
These types of contract are the most profitable types of contracts in the realm of e-commerce. ROI typically starts at around 45% for these and can be as high as 60% for these types of contracts since we get business pricing, wholesale discount, and an added discount for helping the brand grow.
If your business is running a proper FBA model, you should expect an average ROI of 20% or higher.
Each distributor contracts comes standard with business pricing so we get discounted rates on products, and with a wholesale purchase we get an additional discount depending on how much inventory we buy. The more you spend, the cheaper each unit is
We have strategically placed 4 warehouses around the US: New York, New Jersey, California and Ohio.
By next year, we will have one more warehouse open in Miami.
With these strategic locations, all of our Clients will have fewer shipping costs for goods leading to much higher ROI.
In almost all cases, only products fulfilled by Amazon themselves have Prime Shipping. In FBA, we are ordering products wholesale and delivering them to an Amazon facility to Amazon can fulfill each order, hence the name FBA (Fulfilled By Amazon). All products sold in this program are eligible for Prime shipping.
FBA is the most stable form of fulfillment. We are purchasing a set amount of inventory and this inventory is counted and logged upon shipment from the distributor, entrance into our facility (if product prep is needed), leaving our facility (if product prep is needed), and Amazon does a final inventory count before making the listing active.
It is impossible to oversell inventory or not have enough stock for orders. Returns and customers service are handled 100% by Amazon. If your customer has any issues, they will be instructed to contact Amazon Customer Support directly. With Amazon handling this part of the business, it creates stability in the model and makes it sustainable long term.
Rest assured this is 100% a passive investment. Our team of hundreds of experts will handle listing products on your business, repricing listings, placing orders with distributors, customer service, and everything else in between
At any point in time, you can login to your client portal and see exactly which brands we have applied to be authorized distributors for, which brands we have been approved for, sales data, and all other relevant information for your business.
We work with nothing but top tier brands in the USA. When we sell their products, we don't need to pay to advertise. The brands will handle all the marketing for us
For FBA, we will handle 100% of warehouse / prep needs for the business in-house. That means you get the best pricing possible and bigger margins.
All of your warehouse needs are provided to you including product prep, FOB procedures, and more
*Note: We've seen many agencies claim they can get your business ungated for specific brands, however being ungated for a brand on Amazon DOES NOT mean you you have approval to sell their products. Your business still need a distributor contract with an authorized retailer to sell branded products.
Ecom Autopilot has all the required documentation to get your business ungated for top tier brands and restricted categories.
*Note: We've seen many agencies claim they can get your business ungated for specific brands, however being ungated for a brand on Amazon DOES NOT mean you you have approval to sell their products. Your business still need a distributor contract with an authorized retailer to sell branded products
We Don't Believe In A Cookie-Cutter Business Model.
Each store we accept into our programs is tailored towards the Client. First we need to understand what your goal for the business is. Is it to grow your wealth? Is it to be a supplemental form of income, or are you looking to replace your income entirely? What are your profit goals per month? Contact us and our Leadership Team will sit down with you to understand your current financial situation and where we can help!
Once we understand exactly what your needs are, we will curate a custom business plan given the current season, contracts available, and a handful of other important factors to finalize a working capital amount. This way once the business is active, there is no miscommunication with expectations
Key Differentiators
Why Engaging With Us Makes Business And Financial Sense, With A No-Risk Guarantee.
FBA
Picking The Right Program For You
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In recent months, we have seen a large surge of investors new to e-commerce under the impression they can run an FBA business using a credit card, line of credit, etc. What's worse is we've seen other agencies continue to feed these lies to investors and once the business starts, it comes crumbling down quickly. We wrote a blog on using credit for FBA and why it's a very bad decision to do so. The full article can be found in the "News" section of our website. For your convenience, a summary is below:
From the moment you pay for a product, it can take up to 15 days for it to reach Amazon's fulfillment center and be active for sales. It is impossible to sell out of all FBA inventory, have each order deliver, wait a few days to receive the payout from Amazon, and pay off a credit card bill all in the remaining 15 days until your statement is due.
The average Inventory Cycle is about 3-4 weeks. From the moment you pay for inventory, you should expect to fully realize the ROI within 30 days of the product reaching an Amazon fulfillment center (estimating a 30 day sellout time, plus 1-2 weeks to receive the last payment).
You do NOT want to pay interest on a Wholesale Purchase which is why FBA is a cash based program. You will pay for inventory by sending wire transfers directly to brands.
Rare exceptions to this are outlined in the article.
To scale an FBA business, we require a minimum of $10,000 in operating cash, however we aren’t starting the business off with a $10,000 inventory purchase.
First, we need to verify analytics to make sure we have accurate sell out times, then start to scale. The first few months we are ordering a large variety of small batches of products. Every store gets at least a dozen products to start. Larger stores can get up to 2-3 dozen products
Once we verify analytics with these small batches, we can test more products and repurchase previous inventory in larger quantities. At the end of every inventory cycle, we are reinvesting that capital back into the business to reorder inventory so the store can grow organically.
Below is your estimated inventory spend per month during each phase of your business. Remember you can reinvest capital from previous months back into your business:
Operating Budget
Months 1-3: $5000 Minimum
Months 4-6: $10,000 Minimum
Months 7-9: $20,000 Minimum
*This does not include initial start-up cost
In almost all cases, only products fulfilled by Amazon themselves have Prime Shipping. In FBA, we are ordering products wholesale and delivering them to an Amazon facility to Amazon can fulfill each order, hence the name FBA (Fulfilled By Amazon). All products sold in this program are eligible for Prime shipping.
FBA is a bit slower to scale compared to dropshipping due to the nature of a wholesale business model. We need to wait for shipments to deliver to the proper warehouse, product prep, and Amazon must process the inventory before its active for sale.
The plus side of this is we get a larger ROI as mentioned below, but it also becomes a more stable business compared to dropshipping. Since we have guaranteed inventory, it's impossible to sell "out of stock" products and since Amazon is handling 100% of fulfillment, they take full responsibility if products are damaged in transit, delivered to the wrong address, etc. You don't get the same protections in dropshipping as you do with FBA.
FBA is the most stable form of fulfillment. We are purchasing a set amount of inventory and this inventory is counted and logged upon shipment from the distributor, entrance into our facility (if product prep is needed), leaving our facility (if product prep is needed), and Amazon does a final inventory count before making the listing active.
It is impossible to oversell inventory or not have enough stock for orders. Returns and customers service are handled 100% by Amazon. If your customer has any issues, they will be instructed to contact Amazon Customer Support directly. With Amazon handling this part of the business, it creates stability in the model and makes it sustainable long term.
FBA is the most stable form of fulfillment. We are purchasing a set amount of inventory and this inventory is counted and logged upon shipment from the distributor, entrance into our facility (if product prep is needed), leaving our facility (if product prep is needed), and Amazon does a final inventory count before making the listing active.
It is impossible to oversell inventory or not have enough stock for orders. Returns and customers service are handled 100% by Amazon. If your customer has any issues, they will be instructed to contact Amazon Customer Support directly. With Amazon handling this part of the business, it creates stability in the model and makes it sustainable long term.
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