Is this the END of Amazon FBA as we know it? Amazon has just announced the launch of a new low cost discount store that will allow Chinese suppliers to ship directly to Amazon customers, cutting out the middle man! This will put Amazon in direct competition with the likes of Temu and Shein who offer discounted goods shipped directly from the manufacturer to the customer.
In recent years, Temu and Shein have expanded rapidly and captured a large chunk of low value ecommerce in the US and the UK. Amazon has decided enough is enough and is now fighting back with the launch of their very own discounted storefront that will enable customers to buy directly from factories at low prices.
Some Amazon sellers are concerned that this could have a major impact on Amazon FBA business models, however, I think private label sellers will be just fine providing they adhere to my core principles.
Many Amazon FBA beginners think the key to becoming a successful Amazon FBA private label seller is having the cheapest products on Amazon, but this is simply not true.
While there will always be a certain percentage of Amazon customers that buy the lowest cost goods, there is also be a large number of Amazon customers that buy based on value instead.
The key to making money selling on Amazon in 2024 is offering premium products that have greater perceived value than cheaper competition. It doesn't matter if other products are cheaper if your product is superior and priced reasonably.
When starting an Amazon FBA business you should focus on how to make products better, not cheaper.
Amazon didn't build build a massive logisitics network with hundreds of fulfilment centres and thousdands of delivery drivers just to give it all up and become a dropshipper for cheap Chinese rubbish.
I have been selling on Amazon FBA UK for 6 years and I believe Amazon private label is here to stay.
What do you think of news that Amazon is helping Chinese suppliers to ship directly to Amazon customers? Will it stop you from starting Amazon FBA UK in 2024? Let us know in the comments below! !
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