Amazon Associates participating in the Amazon Affiliate Program makes hundreds of thousands of dollars each year by buying products from overseas and then shipping them to Amazon fulfillment centers to deliver to their customers. By this means, Amazon Affiliates leverage the unquestionably huge reach of the Amazon marketing behemoth selling through FBA (Fulfillment by Amazon), and make sliding scale commissions based on the sale price of each item and their volume of sales…that is if they do it right and don’t make a lot of mistakes along the way.
While you can make big money in the Amazon Affiliate program, you can also lose money. Competition is fierce.
“One of the biggest mistakes you can make in deciding to participate in the Amazon Affiliate Program is not taking time to learn everything you can about the business.”
Starting out is slow. Plus, if you think shipping in and around the U.S. is tricky, wait until you see the pitfalls of importing products for the Amazon Affiliate program or FBA, which might just as well stand for “Fundamentally Bewildering Activity.” Why?
3 Ways to Avoid Going Broke with Amazon FBA.
- Proceed with caution and patience.
- Know what you need to know.
- Know that you don’t need to know it all, but that someone you trust does.
#1. Proceed with caution and patience.
One of the biggest mistakes you can make when deciding to participate in the Amazon Affiliate Program is not taking time to learn everything you can about the business. You can start by looking at the big picture by checking out the following (1) Amazon’s rules for shipping to Amazon; (2) United States laws for importing into the U.S. (3) Importing and Exporting Inventory advice from Amazon.
#2. Know what you need to know.
In addition to being cautious and knowing the big picture, you should be aware of how you can lose money when selecting products to sell on Amazon. Here are some examples: (1) Not studying the market you’re selling into; (2) Not knowing the product you’re selling; (3) Not vetting the manufacturer or exporter (their rules for doing business, language barriers, etc.); (4) Not insisting on product quality; (5) Not knowing about tariffs, classes, carriers, base rates and tons of other logistics considerations.
#3. Know that you don’t need to know it all, but that someone you trust does.
You can do your homework on the market, products, manufacturers, etc., but learning about shipping and logistics especially shipping to Amazon FBA warehouses will really challenge your patience. Instead, don’t blow all your hard-earned capital on mistakes made on mismanaged first, second, and third shipments to Amazon.
By finding a logistics company that fits your company’s style, sense of urgency, and values (see our white paper “5 Tips: Choosing the Best 3PL for Your Shipping Needs”), you can start to know what you’re seeking in a freight forwarding company. Then, by having an expert supply-chain management company like BGI Worldwide Logistics, Inc. on your team, you can feel comfortable that someone does know how to do this right the first time.
You can try to learn all of the laws yourself, but as we said, it’s complicated. Here’s how you’ll know you can trust us: (1) We have handled many successful Amazon Affiliate import shipments and have developed a reputation as the “go-to” company in this niche. (2) We have saved businesses and individuals that experienced big problems from other companies. (3) We have facilitated Amazon Affiliate importing transactions by taking care of customs clearance and logistics.
To avoid going broke selling products on Amazon, do your homework. Proceed with caution and patience. Know your customer, your product, and the players. Find a trusted freight forwarder with a proven track record in this niche to help you with importing.
BGI Worldwide Logistics, Inc. will help you get it right the first time.
Got questions? Call 800-987-4244 for more information.
Use our essential Amazon Import Checklist to assist you with filling out the rate request form.