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May 1, 2023

What Does it Take to Start an eCommerce Business on Amazon? with Will Basta of Ascend Ecom

Starting an E-commerce business on Amazon can be a lucrative venture for entrepreneurs. The Amazon platform offers a ready-made audience for online sellers, making it easier to reach a larger customer base than starting a standalone e-commerce website. However, starting an e-commerce business on Amazon requires a lot of planning, education, and capital. This article will outline the key factors required to start an e-commerce business on Amazon.

Time Stamps

0:00:00 | “Starting a Profitable Ecommerce Business on Amazon: What You Need to Know”
0:04:07 | “Getting Started with Amazon FBA: What You Need to Know”
0:05:01 | Exploring the Amazon Automation Industry: Vetting the Right Place to Invest Capital
0:06:30 | Heading: Questions to Ask When Partnering with an Amazon FBA Company
0:10:54 | Exploring the Benefits of Amazon Automation for Business Growth and Investment
0:14:29 | “Exploring the Relationship Between Ecommerce and Alternative Investment Opportunities”
0:15:31 | Exploring the Benefits of Licensing for Businesses Selling on Amazon
0:17:55 | “Understanding the Value of Licensing Agreements in Wholesale Businesses”
0:19:07 | Heading: Exploring Unique Investment Opportunities with Ascend Cap Ventures
0:20:55 | Exploring International Markets for Amazon Businesses
0:22:44 | Interview with Will from Ascend Cap Ventures: Exploring Monumental Growth in the National Market

Factors Required to Start an E-commerce Business on Amazon

Time

Starting an e-commerce business on Amazon requires a considerable amount of time investment. One must invest time in research, sourcing products, setting up an Amazon seller account, and creating product listings. It is also essential to spend time analyzing data and adjusting strategies to improve sales.

Money

Starting an e-commerce business on Amazon also requires a significant financial investment. You need to invest in inventory, product listing fees, and advertising to increase visibility and drive sales. Additionally, you may need to hire experts in areas such as product photography, copywriting, and SEO to optimize product listings.

Patience

Starting an e-commerce business on Amazon requires patience. It takes time to gain traction and build a loyal customer base. It is essential to be patient and persistent, even when facing setbacks.

Acceptance of Failure

Starting an e-commerce business on Amazon involves a significant risk of failure. Accepting that failure is possible and that not all products will generate profit is crucial. Being willing to pivot strategies and try new approaches is critical to long-term success.

Bringing in the Right Third-Parties

One of the most crucial factors in starting an e-commerce business on Amazon is bringing in the right third parties. There are several third parties you may need to work with to run a successful Amazon business.

You Need a 3PL Partner for Scalability

To scale your e-commerce business, you need a third-party logistics (3PL) partner. A 3PL partner will help you manage your inventory, store, and fulfill orders. However, finding a 3PL partner that does not cut into your profit margin is challenging. You can start by prepping your products out of your garage or having your suppliers pre-prep them for Amazon, but that takes a lot of work.

Education

To start an e-commerce business on Amazon, you need to educate yourself. There are plenty of resources available, including books, blogs, and courses. You should take advantage of these resources and learn about different sourcing strategies, scaling techniques, and how to optimize your Amazon business.

Scaling Requires More than One Person

Scaling an e-commerce business on Amazon requires more than one person. You need a team of experts to handle different aspects of your business, including product sourcing, marketing, inventory management, and logistics.

Assessing Third-Party Amazon Automation Companies

If you are looking to outsource your Amazon business, it is essential to assess third-party Amazon automation companies carefully. The Amazon automation industry is broken, and it can be challenging to find a reliable company. When assessing third-party Amazon automation companies, ask the right questions. Consider factors such as leadership, number of clients, success stories, and infrastructure.

Infrastructure is Number One

When assessing Amazon automation companies, infrastructure is the most crucial factor. You need to evaluate how they source products, their business models, and their contacts. For instance, if they source products through wholesale, you should consider if it is competitive and if they have decent margins. You should also evaluate if they have manufacturing contacts and if they offer private label services.

Software Stack

Another crucial factor to consider when assessing Amazon automation companies is their software stack. Their software stack should include inventory management tools, analytics tools, and a reliable order management system. It is essential to evaluate their software stack carefully, as it is not cheap to invest in these tools.

Security

the Amazon businesses that they operate, which means that clients’ funds are invested back into their own businesses. This creates an additional layer of security for investors as their funds are not being invested in other companies or industries.

Another important factor to consider when assessing third-party partners for an Amazon business is their level of expertise in the industry. As the e-commerce industry is constantly evolving, it’s crucial to work with partners who have a deep understanding of the marketplace and can adapt to changes quickly. Ascend Ventures has a team of experts who specialize in Amazon marketplace operations, including sourcing, logistics, marketing, and sales.

Ascend Ventures also offers a suite of tools and software to help their clients manage their Amazon businesses more efficiently. This includes inventory management software, analytics tools, and advertising software to help businesses optimize their advertising campaigns on the platform.

In conclusion, starting an e-commerce business on Amazon requires time, money, patience, and a willingness to accept failure. Bringing in the right third-party partners can help businesses scale quickly, but it’s crucial to vet potential partners properly. Factors to consider when assessing third-party partners include their infrastructure, sourcing capabilities, software stack, security, and level of expertise in the e-commerce industry. Ascend Ventures offers a comprehensive solution for Amazon business owners and investors, including sourcing, logistics, marketing, sales, and asset-backed funding. With the right partners and tools, businesses can succeed and thrive on the Amazon marketplace.

Resources

  • Start your Amazon wholesale sourcing business with confidence by partnering with Ascend Capventures. Contact us today to learn more.

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