Table of Contents:
1. Introduction to Done-for-You Amazon Stores
2. **The Hybrid Model: Two-Step Drop Shipping and FBA**
3. Avoiding Saturation in the Amazon Marketplace
4. Profit Margins and Working Capital Requirements
5. Transparency and Reporting
6. Building Credit for Your Amazon Business
7. Mitigating Risks and Avoiding Failures
8. Leveraging Credit Card Rewards
9. The Benefits of Having an In-House Warehouse
10. Frequently Asked Questions (FAQs)
**The Hybrid Model: Two-Step Drop Shipping and FBA**
🔍 As Jose explains, the traditional drop shipping model, where orders are fulfilled directly from the supplier to the Amazon customer, is no longer viable in the long run. Amazon has cracked down on this practice, as they want to maintain control over the customer experience and avoid their customers receiving branded boxes from other retailers.
To address this, Motive Automation has adopted a hybrid model that combines two-step drop shipping and FBA (Fulfilled by Amazon). In the two-step drop shipping process, the order is first placed on Amazon, then Motive Automation purchases the item from their supplier and ships it to their warehouse in Texas. From there, the item is repackaged in a generic box or USPS bag and then shipped to the Amazon customer.
This approach ensures compliance with Amazon’s terms of service and mitigates the risk of store suspensions. While it may slightly reduce profit margins, it provides a sustainable and reliable long-term solution for running Amazon stores.
For the FBA portion, Motive Automation purchases inventory in bulk from wholesale suppliers or distributors and then ships it to Amazon’s fulfillment centers. This allows them to offer Prime-eligible products to customers, further enhancing the customer experience.
🔍 Jose emphasizes that the hybrid model, with its combination of two-step drop shipping and FBA, is the key to running successful and compliant Amazon stores in the long run. By adapting to Amazon’s evolving policies and prioritizing the customer experience, Motive Automation is able to provide a reliable and scalable service to their clients.