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Amazon FBA: Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $

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Amazon FBA

Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $66,000 by Selling Them on Amazon FBA

Table of Contents

Introduction

Chapter 1 – How FBA Works

Chapter 2 – Why it Make Sense for Sellers

Chapter 3 – Types of Products

Chapter 4 – Where to Buy Inventory

Chapter 5 – Tools to Use

Chapter 6 – Combining FBA with Other Amazon Services

Conclusion

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© Copyright 2015 by Scott Green- All rights reserved.

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Introduction

Welcome to the future. Building a successful business no longer requires an entrepreneur to handle every aspect of their business. They can outsource the things they can’t do well to experts who provide services and pay a few dollars to keep their focus on the things they do well. That’s the magic of Fulfilled By Amazon.

Fulfillment is a challenge that stunts the growth of so many businesses. They understand product development and design, but they can’t get the goods into their consumers’ hands. Or they know how to get customers to buy but can’t figure out what the best things to sell them are to maximize their profits. But we can fix all of that together.

Thank you for downloading “Amazon FBA: Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $66,000 by Selling Them on Amazon FBA”. This short guide book will get you on pace to break all kinds of selling records and bring in big bucks by handing off the hassle of fulfilling orders to a company that does that so well.

Amazon is a behemoth. It fulfills packages both of physical products and electronic data all day everyday and they do it with greater efficiency and productivity than most any company on earth. As a result, business owners do not need to fret about how to get their products out in a timely fashion. They can have Amazon handle it all. But what if we turn this idea up to eleven?

What if instead of designing and developing product, we sell and have Amazon fulfill orders for existing products that are the right combination of margin, demand and ease of fulfillment? Well in that instance, we have a juggernaut of self-perpetuating revenue. And we can kick back on a beach and count our dollars as they pile up in our bank account. Let’s get started.

Chapter 1 – How FBA Works

Any direct marketed product has to be delivered quickly and in good condition to ensure that the highest customer satisfaction. The typical direct marketing company falls into one of a few tightly defined categories. The idea is that the merchant is responsible for obtaining the customer and fulfilling the order. In some instances, the merchant not only sources product from other manufacturers, they also design, develop and make the product themselves. The best direct marketers use narrowly focused communication to their customers to drive sales. Think of a catalogue you might get in the mail or an email alerting you to a sale on a website where you buy products regularly. This is the essence of direct marketing.

FBA takes direct marketing and inverts it. Instead of finding customers one at a time and fulfilling their orders from a warehouse facility, FBA allows the merchant to ship material to Amazon and Amazon will fulfill orders for them. That relieves merchants of the necessity of maintaining their own facilities. In addition, Amazon does most of the basic customer acquisition. Typical Fulfilled by Amazon products rank fairly high on Amazon to begin with. As a result, the goal is not to pay to get a customer to your site, but to rely on the brand recognition of Amazon to sell product to a far bigger audience than one could possibly enjoy otherwise. Here are the specific steps to have Amazon fulfill product.

The first step is selecting product for Amazon to fulfill. The products you choose should fit certain guidelines. First, they should rank fairly well in the selling rank on Amazon. They do not need to be top sellers, in fact, in many ways it is better if they are mid-tier items that perform solidly but also do not attract a large quantity of competition. There are other rules, but we have chapters devoted to those rules.

Second, you need to ship those products to Amazon. The shipping process is not as simple as loading everything into a box and sending it to Amazon. If you are not selling on Amazon already, you will need to register to become a seller and to further have Amazon fulfill your orders. Then you will assign inventory to FBA. In many instances, people choose to have Amazon fulfill their entire stock of inventory. You can choose that option. You can also choose to fulfill some of your inventory. As you discover the ease of selling and fulfilling through Amazon, you will likely go with having Amazon do everything.

Once the inventory has been selected, you will need to package the products to send them to Amazon. Amazon has specific guidelines you need to follow. Those are available in Amazon’s quick start guide for Fulfillment By Amazon. However, here are the highlights you need to know. Inventory can be co-mingled, but inmost instances you will print and affix labels to merchandise that notes the inventory is yours. Once the materials are prepped and packed, it’s time to ship. Amazon will allow sellers to take advantage of discounts Amazon secures from UPS. Amazon can also accommodate deliveries from both full truck load and less than truck load carriers. They require appointments to deliver, which can be worked out in advance. As always, Amazon has a process for how to handle this.

When Amazon receives your merchandise they scan it and measure it for storage in their facility. Amazon charges on a per cubic foot basis for storage. Because they are earning a commission on the sale of merchandise, their inventory storage rates are quite competitive in the third-party logistics space.

Amazon also provides sellers a means of tracking their inventory stores while housed within their facilities. Their integrated tracking system will provide detailed information on what is in stock and what inventory has been exhausted. Because fulfillment is a service, the costs associated with everything are rolled up into the monthly fees.

When customers order on Amazon, they see the discounted shipping that items fulfilled by Amazon receive. Items included on orders in excess of $35 ship without any freight fees. Additionally, members of Amazon’s Prime service can choose free two-day shipping on items fulfilled by Amazon. This improves the standing of your offer in the marketplace and makes it more appealing to Amazon’s most consistent customers.

Additionally, orders placed on your website can be submitted to Amazon to fulfillment. Those of course do not ship free of charge to the customer, so keep that in mind if you plan to offer free shipping for product on your own website. At this point, Amazon fulfills your order by picking, packing and shipping the items to your customer. And nicely for all orders originating on Amazon, they will also provide customer service.

The fee structure is complicated enough that I don’t want to try to relate its entire nuance here. Best to review the types of products you want to sell and note what fees Amazon typically charges for fulfillment.

Chapter 2 – Why it Makes Sense for Sellers

Fulfillment typically chews up resources and requires significant overhead. Let’s look at why:

Product must be stored on-site in a warehouse. If the product is perishable, the warehouse needs to maintain specific controls to ensure the product remains in top condition. For small businesses, this additional cost can destroy the profit margin they would typically enjoy on selling a product. To compensate, they need to increase their price. In competing with Amazon, they are now far more expensive and worse, they cannot offer the same caliber of service.

Product must be picked and packed before it can be shipped. Some warehouses use complex warehouse management systems that route product in an automated fashion. They also utilize system directed instructions that maximize the labor force of the warehouse. Such efficiencies are offered by Amazon as part of the whole Fulfilled by Amazon process. For even the lower cost WMS systems, the costs typically soar into the six figure range, without adding in conveyors and other tools that move product without human intervention.

That’s far more than a small business can hope to afford. And that’s how larger businesses gain such a massive advantage. FBA levels the playing field. It puts those advantages into the hands of smaller businesses and allows individuals to keep costs low and allows them to maintain competitive prices.

Now instead of renting a warehouse and maintaining a staff that unloads trucks, puts away products and then picks, packs and ships them to customers to fulfill orders, you can acquire product, ship it in bulk to Amazon using freight forwarders who transport truck load and less than truck load containers. Those cost less (and take longer) than FedEx and Ups shipping of individual parcels. The huge advantage is that the lower cost to transit to Amazon ensures that you sacrifice a lower cost per unit on product, thereby keeping your prices low enough to be attractive to customers.

So you eliminate the following typical business costs. You no longer need a warehouse of your own. You do not even need to receive merchandise if you typically have it shipped in from manufacturers. Instead it can all get routed to Amazon directly. You can maintain a far smaller office, or alternately, allow your team to work remotely. Telecommuting enables you to eliminate the office altogether. With connectivity easy and inexpensive, you can call your buyer no matter there either of you are as if you were in the same building.

In addition to trimming rental expense on your facilities, you can outsource your IT processes and work in the cloud. Amazon can help you there, too. Document management, business applications, even customer service can be handled through a combination of outsourcing labor and technology. Lower costs and higher profits naturally follow.

Finally, without facilities and staff, the requirement for capital inputs decreases dramatically. A business does not need to acquire, maintain or dispose of expensive assets. The lack of capital equipment purchases further reduces overhead.

Additionally, such assets are typically depreciated over a multi year period to defray the costs. This will always require retaining an accountant at least, or hiring a controller to manage the business. Without facilities, capital equipment and most of the staff, the business can run without layers of general administration and become even leaner. Relying on Fulfillment by Amazon, in and of itself makes minor revenues enough to sustain a business with a decent amount of profitability. If an individual or couple are working together, they can handle the tasks of sourcing product, delivering it to Amazon and all other aspects of the business, while earning enough money to maintain a comfortable lifestyle.

That’s why Fulfillment by Amazon is so powerful. It is an instrument of individual freedom. Instead of working to line the pockets of a boss who hates you (and trust me, your boss hates you) your efforts go to directly enrich you and your family. And it takes up far less of your time than the average forty to fifty hour work week. I know of people who have built up businesses that provide them with consistent monthly income far greater than they earned at the corporate jobs, working six to eight hours a week.

What would you do with that kind of time?

Chapter 3 – Types of Products

Rather than provide specific products, I am going to provide you a set of guidelines for the best types of products you can list on Amazon. The reason for this is simple. The best products as I write this may not be the best products in two weeks, ten weeks, fifty weeks or further into the future. Whenever you read this book, you won’t be searching for the big hit of this moment, but rather you’ll want the big hit of your moment.

The other thing to consider is that Amazon continuously refines what sellers can merchandise on Amazon. If you are not an authorized reseller of merchandise, you could be prohibited from selling an item on Amazon. Not to worry, if you stocked up on a bunch of collectibles from the latest movie that all the kids love. You can still move the goods through other channels, like eBay.

The first consideration on products is their size and shape. So one of the best areas I have found for product acquisition is health and beauty. Especially profitable are the items that are being discontinued. Buying these goods on clearance is a great way to get inexpensive merchandise that will move. Consider the following items:

Lip Gloss/Balm – Tubes of lip gloss are very small, even when packaged. And many women who use lip gloss are very particular about their favorite flavor. Buying them on liquidation can turn into a long-tail item that gets bought consistently. Long-tail items that don’t take up a ton of space are perfect because they can sell at a premium, don’t cost a lot to store over the long-term and best of all will move to desperate customers who can’t find their favorites.

Over the Counter Medications – It doesn’t matter if it is generic or brand name, people will source their medications through the internet and Amazon is a top-seller of these kinds of pills. Check your sales ranks before buying a big lot of product. Just like lip gloss, they don’t take up room on the shelf, sell consistently and can make a good profit, even when Amazon’s fees are taken into account. This goes for pain relievers, allergy meds, antacids and more. The medications I would avoid are syrups and liquids. It’s fairly unlikely they will get damaged in transit, but why risk it?

Makeup – So I noted the loyalty women have to lip gloss brands and flavors. Sales figures also show that the loyalty women feel towards their preferred makeup purveyors is exponentially greater. It might be foundation, a color palette, eye liner or lipstick. If a woman feels that this product helps her look terrific, she will buy it again and again. Like lip gloss, it won’t occupy a lot of space making it a stellar buy on clearance, as long as the Amazon sales rank is good.

Skin care – These products are a little different from makeup. And there are a few categories that stand apart as performers. Sunblocks and sunscreens are good to stock in your Amazon store, especially around the time college kids are planning to go on spring break. From then throughout the summer, these products can sit on your shelf awaiting buyers to snap them up. And they are most in demand when your inventory management rates on Amazon are at their lowest. Additionally, body butters – a particularly rich lotion – will store well for an extended period of time and take up little room. They don’t have the risk of spillage or breakage that liquids have. And like other clearance items, they have loyal buyers who will pay a premium to obtain them.

Vitamins and supplements – if you time these deals right, you can pick them up at you local grocery store buy one, get one free. Combine that with a coupon that gets you a buck or two off the purchase of two and you can walk away with a decent amount of inventory at way below retail per unit costs. Vitamins have a long enough shelf life that you can store them at your home before sending them off to Amazon for fulfillment. That way you save he inventory fees while the big sales are on-going at the stores.

I tend to avoid electronics. I like to buy on clearance when stores are going out of business or when products have been discontinued. Brand loyalty to electronics, just isn’t there the way it is for health and beauty products. Likewise, as much as I would love to be in on the ground floor of the next big toy craze, if you do not have the insider information, you’re going to be one of a thousand sellers and you’re going to get crushed on price.

My advice is stick with small, consistent sellers that you can buy either on clearance in bulk or regularly from traditional retail outlets or brand name products you can source from discount clubs. They will provide you a consistent solid return and chew up maybe twenty hours a week to buy, box and ship to Amazon.

Chapter 4 – Where to Buy Inventory

Sourcing product can be a challenge. Who do you buy from? How much should you get? What can I realistically expect to make off this stuff? All these questions need to be answered and the best lab to experiment in is your own home.

It’s far simpler practice on things you already know a little about. Plus, as I will detail in a later chapter, to get the hang of the tools you can use to help with picking good products, you need to get started somewhere. Why not your own home? As an added bonus, if you are considering living a more minimalist lifestyle, selling off some of your stuff is a great way to declutter your home and life!

This is also the lowest cost inventory you will ever source. The stuff on your shelves and in your closets may not be in mint condition, but that won’t matter to some buyers. Box it right and send it in. The best items to choose are the ones in newest condition.

Now it’s time to compare to the marketplace. Are there a lot of sellers or just a few? Is this a regular Amazon item? Does this item have a chance of making me some money? One of the best tools you can use is an FBA calculator. They are available online and can give you some clues about what you could make by listing it on Amazon.

When you graduate beyond stuff at home, you can expand your horizons to the local junk dealers. Everything from Goodwill, a local thrift shop, the junkyard across town, even local Craigslist offerings can provide inexpensive and profitable inventory possibilities.

One popular way of finding possible inventory, though it carries risk is buying inventory from abandoned storage lockers. This was popularized on a television program or two. It has both upside and downside. If the items are in terrible condition, you won’t make money back. If the items are not great sellers on Amazon, you’ll shed any profits you could make in storage fees.

So be careful with that method. However, one good storage unit buy could easily turn into one of your most profitable inventory acquisitions.

If you are on a tight budget to buy inventory, using thrift stores and junk dealers can work incredibly well. When you find quality items in good or better yet new condition, they can be had for a few bucks and sold for ten, twenty or even fifty times the price you paid.

Depending on the item, you can get a great return. The trick is to find things that a particular buyer will want. Someone, somewhere is looking for an old VHS copy of a movie that isn’t on DVD. If you find it, you can score big.

Here’s what is great about sourcing from thrift shops and junk dealers. First, the lower the cost is, the higher profits will be. You do not have a ton of competition from other sellers on Amazon, like you would at an auction or large sale event. Finally, these retailers are constantly adding stock and their shelves are always turning over. They may have a great deal today and an even better one next week when you return. Just keep in mind, the time these items sit on the shelf will tend to be much longer than the ones you get new from traditional stores.

Next you should turn your attention to traditional retail outlets. Here’s something that should not surprise you, retailers sell things cheap. Most of the time, they sell things cheap because they can’t afford to keep it on the shelf anymore. When you see signs for the best sale of the year, you know it is time to hurry in, grab some stuff on clearance and send it to Amazon to make a quick buck.

Amazon’s worldwide reach helps to balance the vagaries of supply and demand. For example, a local manufacturer may have flooded the area retail stores. As a result, the relatively slow turn has motivated these stores to price the item more aggressively. Elsewhere, someone needs this item and can’t find it. When you list it on Amazon, they will.

The sweet spot is the recently discontinued item. When you see clearance on a particular piece of merchandise, you can bet someone, somewhere will want it. Let me give you an example. I snapped up the entire stock of Crockery Gourmet packets when I heard they were no longer going to be made. They cost me less than a dollar a packet. I sold most of them for an average of $5. They were small, low cost and took up no space. People will pay extra when a product they like has been discontinued.

Buying stock from stores can work, because you often get multiples instead of singles. Of a product is particularly profitable, you can clean out several stores in a weekend and have a large stock. And unlike the thrift store items, they should turn quickly.

Chapter 5 – Tools to Use

Before I started selling product on Amazon, I went to library book sales and scouted for good sellers that I could flip on another website that shall remain unnamed. To maximize my profitability with each trip, I selected a variety of tools that allowed me to make informed buys. Sometimes I struck gold. Sometimes I struck out, but with the right tools, I made more money scouting books.

The same principles apply to selling FBA products. With better information we can make better buys and sell for greater profits. Back then I used a PDA with a barcode reader and a database I refreshed before I went out to scout books. Thankfully, we have smartphones that almost always have connectivity allowing us to get the latest information on a product just by capturing the barcode with the camera on the phone. So to get the best results, let’s run down what you need.

First, get a smartphone or tablet with cellular data connectivity. And load onto it a scouting app. Product can be anywhere. You need to go where the product is. Second, load on a scouting app like Profit Bandit. These apps allow you to scan items and get a feel for competition, sales rank, expected profit and other factors that will contribute to your success. The service fee is around $10 per month and it is well worth it.

After checking what the scouting app says, go ahead and click through to the Amazon page for the product. You’ll find more details than you’ll get in even the best scouting apps. Another website to cross check products at is camelcamelcamel. It provides updated prices and histories for products on Amazon. With all this information you can get a real feel for the sellability of an item.

The next data point you need to consider is the sales rank. Be very careful here. Often times on scouting apps, the rank returned will be for a sub category. If a number seems to good to be true (most any sales rank below 1,000 is super awesome) check and double check. If it is for the full category, you can bet that it will move fairly quickly.

You will also want to look at customer reviews as they indicate buying patterns. They also tell you about the speed at which an item is moving. A high number of reviews confirm a product’s relative popularity. Cross check that with recent reviews, because those tell you more about how well the product is moving today. The final piece of data you can glean from reviews are how well received a product is. An excess of one star reviews might indicate your item is destined to get returned. It might also mean there was a bad run on the product which has been corrected. You can only know from doing. So don’t be scared off by one-star reviews. As you have more experience with selling product on Amazon, you can tell which items will sell fine and which will boomerang back to Amazon.

The final consideration you get from the tools surrounds competition. Amazon might be selling this item, in which case, you will need to undercut Amazon’s price to get the sales. There may be hundreds of other sellers who are looking at the same bargain buy you can nab. Weighing out who you will be going up against will give you an idea of how well the item will turn as well.

Chapter 6 – Combining FBA with Other Amazon Services

Having Amazon fulfill orders does not need to be the only way a business makes money. In fact the strongest businesses never, ever rely on a single revenue chain. Amazon has taken this into account and provides sellers with complementary programs that increase revenues and keep their partners tightly aligned. As a result, you can get more dollars from things other than selling product.

The biggest means of doing so is through affiliate marketing. Affiliate marketers create websites that promote specific products or services and then drive traffic to seller websites that provide those products. Amazon is one of the best known affiliate marketing partners. Their Amazon Associates program works as a fine compliment for sellers who are using Amazon to fulfill orders. In addition to providing product, savvy marketers can drive traffic to the site as well.

The process is fairly simple and can increase marginal revenues for every product sold. Additionally, by driving more traffic to Amazon, your inventory will turn faster. Faster turns will further cut costs by getting your product out of Amazon’s facilities quicker. Amazon charges sellers based on cubic feet per month stored. If you can turn your inventory faster, your inventory storage costs decrease dramatically.

Affiliate marketing will also help drive sales outside traditional selling strong cycles. Most retail buying is done between the months of October and December. That strong selling season coincides with the highest rates within Amazon’s warehouses. It stands to reason that as demand increases, the cost to store items will likewise go up. For the smart seller, that means moving product at a fast clip from April to September will have a lower cost than relying on the holiday shopping bonanza. This is due both to the higher stock levels one needs to maintain to sell through the holidays as well as the higher costs.

Here’s a simple blueprint to affiliate marketing that makes it relatively easy for a seller to maximize the rate at which inventory turns in off months.

Begin with an idea of the product types you would like to list on Amazon. Check to ensure Amazon will fulfill them and secondly, make sure their selling rank is not too high or too low. We’re looking for the beloved Goldilocks zone of just right selling rank. When you have twenty to twenty-five products selected you are ready for the next step.

With your list begin to analyze them using search engine optimization to determine which ones would be well-suited to promotion via an affiliate website. Most of the time Amazon will be one of the top searches for an item, but you can tune your content to provide a portal that directs people to your listing of the product. This way you can capitalize on the sale to earn a commission from the Amazon Associates program.

Now this is important, you will need to register for the Associates program under a different name and likely address from the one you are using for your selling on Amazon account. This is a bit of a hack, but the goal here is to increase the percentage of each and every sale so you can maximize your profit and fund a more independent lifestyle through passive income streams.

Additionally, you will want to monetize the website itself with advertisements set up via Google. By doing so, you allow the website to provide an income stream that in time will offset much of the hosting costs.

On the site, you want to add in lots of content related to the product. So let’s look at a product type that is fairly common on Amazon. Let’s say you are selling discontinued or overstock makeup items. You submit the product to Amazon and ship it off to their center. While waiting for Amazon to receive the merchandise you set up a website that uses the product name in its URL. This may be challenging to setup, but by working with a hosting provider you can easily find one.

Link to your own YouTube videos on the product, as well as reviews provided by other users of the product. Additionally, contact those reviewers and ask if they would be interested in submitting a review for publication on the website. You can and should offer to pay them, but keep in mind if you do pay them, that will cut into the profits you will earn from increased sales. Also ask them to link back to your product site.

Each of these will help Google determine that your site is relevant to the product itself. And in turn, your ranking in the search engine will continue to improve. As you climb up the rankings, you will begin to drive customers to your listing on Amazon. Even better your affiliate website will generate a commission on everything they buy while on Amazon, not just your item. So if in addition to the makeup item you are promoting, they buy two or three other things, you get a percentage of each of those sales.

Combining Amazon Associates with Fulfillment By Amazon makes for a more profitable venture.

Conclusion

As you can see, selling on Amazon is made even better by adding in the magic of Fulfilled by Amazon. With the knowledge you have gained in picking the right products, you will be able to increase your revenues while reducing your costs. The internet has opened the doors to innumerable options for making money. And you may have just stumbled onto one of the best.

Fulfillment by Amazon allows traditional businesses to radically and dramatically slash their costs. It provides small solo proprietorships with the same benefits that the best commercial logistics operation in the world enjoys. It allows sellers of all sizes the opportunity to move more product, cut their fulfillment costs and make more money.

Many entrepreneurs like to claim their product is disruptive. That’s mostly a bunch of balderdash. The reality is that products and services are pretty much what they always are. Fulfillment by Amazon is truly disruptive in that it puts power in the hands of those willing to work hard and not those who have traditionally held it.

As you pursue your journey, please accept my best wishes for success, especially as you implement the ideas and strategies you find in this guidebook.


Amazon FBA: Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $

Amazon is so much more than books. In the most recent quarter, Amazon reported record profits and a big part of that was from the growing trend of businesses who figured out they do not need to compete with the largest online retailer on earth. They can partner with Amazon, get the advantage of improved fulfillment and grow their profit margin. Amazon’s fulfillment service is one of the best ways of growing any online based or traditional brick and mortar business. This guide book focuses on how to best maximize your profits by utilizing Amazon’s fulfillment service. The book examines the aspects of business that entrepreneurs need to understand and which they can best outsource to service providers.

  • ISBN: 9781311376893
  • Author: VAGABONGD PUBLISHING
  • Published: 2015-10-23 17:40:09
  • Words: 5682
Amazon FBA: Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $ Amazon FBA: Top 10 Ultimate Items That Will Bring You an Annual Profit of Over $