COMSATS University Islamabad, Lahore Campus

Business Plan

SUBMITTED TO:
Sir Umar Farooq
DEPARTMENT OF MANAGEMENT SCIENCES

SUBMITTED BY:
Talha Saeed
CIIT/SP17-BBA-136-A

COMSATS University, Lahore Campus, 1.5 km Defence Road ، Off Raiwind

What is Amazon FBA Wholesale? …………………………………………………………………2

How Amazon FBA works? ……………………………………………………………………3

Why Amazon? ………………………………………………………………………………….. 4

Why E-commerce? ………………………………………………………………………….. 5

What is Private Labelling? ………………………………………………………………….6

How to do Private Labelling? ……………………………………………………………………7

SWOT Analysis……………………………………………………………………………….8
Business Plan

Amazon FBA wholesale and private label

Due to COVID-19 in in USA many people move towards e-commerce because most of the time
people can't go outside so they prefer to buy online so e-commerce is a very beneficial business
these days and many people moving towards E-Commerce they prefer to buy online. Amazon
Revenue grew to $75.5 billion from $59.7 billion during COVID-19 period. Amazon is growing
day by day because most of the time people are buying online from Amazon people have trust on
Amazon. Amazon is a place where everyone around the world can sell their products and
generate more profits there are different procedures to sell on Amazon. Amazon FBA wholesale
and Amazon private labelling are two different methods.

What is Amazon FBA Wholesale?

FBA stands for Fulfillment by Amazon.

1: First of all, you send your products to Amazon.

2: Secondly Amazon store your product in their warehouses.

3: Now your product is available in Amazon warehouse whenever customer order your product.
Amazon pick your product pack your product ships your product to the customer.

4: Amazon also handle returns and refunds exchange policy.

Amazon charge their fees the fees include storage fees and fulfillment fees.

How Amazon FBA works?

1: You have to send your products to Amazon basically Amazon has more than hundred
warehouses across US and some of them are very huge you have to tell them which product you
are sending so they will tell you should ship on that warehouse.
2: When you send your product, Amazon store your products once Amazon save your all
products they will add your product in their inventory after that your product are secure in
Amazon warehouse

3: Customer buy your product Amazon take care of your transactions they accept payments and
when receive order they automatically update your inventory.

4: Amazon can ship your products they pack them and ship to the customers.

5: Amazon can also take care customer services if customer is not satisfied with your product
Amazon will not allowed you to sell your product on Amazon.

6: After 2 weeks Amazon total us sales deduct their charges and send your profits to your bank
account.

Why Amazon?

Amazon FBA is so much important Amazon has many customers it can be more than 300
million active customers with 90 million prime subscribers in the US alone.

In starting Amazon FBA wholesale is a best option in my opinion because in Amazon FBA
wholesale you don't have to launch your own product you do product hunting through apps
basically product hunting is there are some tools available which tell you about which product is
on the top selling on Amazon. For Example, if baby products are selling on Amazon more you
contact with baby product brands which are in USA because Amazon will not be allowed anyone
to sell their product without labelling or any registered brand. So, when you know that this
product is on top selling on Amazon so you can contact with brands and buy their products in
bulk and add those products in Amazon warehouse when Amazon receive your product they will
add to their inventory and after that your product is visible on Amazon website. There are some
problems in Amazon FBA wholesale because most of the time many brands are not selling on
Amazon and they prefer to sell their products on Amazon by themselves rather than any middle
man sell their products on Amazon. So most of the time brand cut off middle man and sell
directly. In start Amazon FBA wholesale is the best option because you just have to do some
marketing to convince brands after sometime when you make some money from Amazon FBA
wholesale you can move towards private labelling. Private labelling is not easy for startups
because you need a lot of money in private labelling at least $20,000 but you can easily make
some money from Amazon FBA wholesale. I have a plan to start business on Amazon through
FBA wholesale in fact I already started but it's not easy to convince brands but there are some
tricks through which you can convince brands because most of the time brands are conscious
about their brand image. That their brand image will not be affected by some other person so
most of the time they will not allowed other person to sell their products on Amazon. So, I am
making e-commerce website through wix.com and I have a plan to sell some products online in
Pakistan to generate some revenue e-commerce website also helps me when I am convincing
brands in USA. I can tell them I am already doing e-commerce business in Pakistan and I have
my own website so this e-commerce website also helps me in convincing brands in USA when I
convince almost 10 different brands I can almost generate 1000 to 1500 dollars profit monthly in
starting. After sometime when I generate money near to $20,000. I will switch to private
labelling because in private labelling I can generate more profit and I have a safe side because I
am selling my own brand and I have no fear that brand can cut off me someday as a middleman.

Why E-commerce?

E-Commerce business is expanding day by day and due to coronavirus people are buying online
products there is no need to make any physical store to sell your products. Amazon give
opportunity to the business man a platform where business man or any person can sell their
products. Now in coming years e-commerce is expanding people prefer to buy online rather than
visit any store. E-commerce save people time and people like that they can buy anything anytime
anywhere when they have free time after some years Amazon will be a trillion-dollar company
now people of USA are consistently buying from Amazon and after Corona people like to buy
from Amazon rather than buying from any physical store people like to save their time and now
there is a future of e-commerce.

why Amazon FBA is so much important Amazon has many customers it can be more than 300
million active customers with 90 million prime subscribers in the US alone. Amazon is working
in 13 countries and still expanding so its easy u can sell your products wherever you want to.
What Is Private Labelling?

Private labelling is basically you have to make your own brand you have to label your product
basically in private labelling you have to register your company you have to register your brand
name. After that Amazon allowed you to sell your product on Amazon and in private labelling
there are two different strategies first is you can buy some products in wholesale from
alibaba.com. There are many wholesalers who can provide you people who do your product
labelling suppose you can buy some product from Alibaba they give you the contact number of
brand labelling company or some people who can label your product from your brand name from
outsourcing and they can send your product in Amazon warehouse you have to just place your
order they label your product and deliver your product to Amazon warehouse. Second method is
you can purchase some product from your country in wholesale and label your product and you
can send your product in Amazon warehouse but there is some issues in this because in Pakistan
State Bank of Pakistan have some policies that the product you export you have to show that you
receive your payments you have to show State Bank of Pakistan in a week that you receive your
payments but Amazon send payments after 15 days so this is quite impossible to show to State
Bank of Pakistan in a week that you receive your payments so there are many companies in
Pakistan who export your small amount of products with others.

How to do Private Labelling?

There are a number of steps in order to create a Private Label on Amazon.

1: Finding a suitable product or Product Niche

Strengths

1: The third most popular global brand.

2: Financial performance.

3: Cost leadership.

4: Customer experience fast and reliable service.

5: Range and merchants’ huge range of products available on Amazon.

6: Amazon is using latest technology.

7: Amazon using efficient global logistics and distribution system.

Weaknesses

1: Amazon has low margins so business can generate less profits.

2: Amazon has yet to develop all leading brand of hardware products.

3: Bad press and coverage about employee treatment is damaging the brand.

4: Physical stores lack of financial growth shows that despite its innovative approach profits are
missing.

5: Amazon has a poor track record of moving to sustainable solutions and remains opaque about
its progress.

Opportunities

1: Make more accounts in those countries where Amazon is working.

2: Make your own brand through brand labelling.

3: Hardware partnerships partner with leading hardware for AI/voice recognition.

4: Expansion of physical stores acquisition of further retailers to establish broader presence.

6: New markets for example healthcare of 1 trillion-dollar industry.

7: Amazon branded products expand range which in turn will provide higher margin
opportunities

Threats

1: Competition there are large global players are aggressively e tracking Amazon for example
Walmart.

2: In case of any problem Amazon cancel your account subscription.

3: Several Asian competitors could expand operations in the US and Europe.

4: Anytime there is certain change in government regulations.

5: Payment clearance.