This is the fifth post in our Sourcing for Independence series! Welcome back! Did you miss the others? Click here to check them out.

This email is about sourcing to sell on Amazon. Amazon is a great selling platform, but just like eBay, it’s a competitive price driven marketplace. Even if you don’t sell on Amazon, read this anyway for some tips!

I had the honor of visiting the Amazon corporate offices in Seattle many years ago when they first launched their FBA program (Fulfillment by Amazon) and got to meet with department heads and get a walk-through of their new service before they launched it. I had the opportunity to give them some feedback and understand the process and how valuable it could be for online sellers. I still feel that it’s a valuable service if you sell on Amazon or even if you don’t, because they do offer multi-channel fulfillment. So yes, if you own an online store, you can still use FBA to stock and ship your orders for you.

Amazon has many fulfillment centers around the country and abroad, and their shipping speed is very reliable!

In order to use FBA, you have to buy in bulk, each product has to be registered with Amazon, have its own UPC code/labels, and you have the products shipped to them. They store the products in their fulfillment centers and ship your orders. Some other great things about FBA is that they co-mingle the products. For example, if 50 sellers are selling the same thing, and they get the products from those 50 sellers, they will put them all in the same section or take those products and spread them out to different fulfillment centers because they end up with a lot of them. They also move products around based on demand. For example, if they find that most people…