Originally Posted by
Dan Druff
The Fulfillment By Amazon thing is especially disappointing to read about, though. I had always thought that Amazon was simply contracting with certain third-party companies to sell certain goods they didn't carry, and thus had some kind of quality control in place. (By contrast, I never thought that the non-"Fulfillment" third parties had any vetting.) But now I'm reading that you could be buying knockoffs when using the Fulfillment merchants, which makes the sales tax savings I've been getting perhaps not so worth it.
Anybody can sell FBA. You just set up an account online and give them some banking info, tax ID, etc. I did it this past spring when yard sale season hit my area. The ROI was pretty sick, I could go spend $50 every Friday morning and come home with $500+ in merch. Retail arbitrage can be profitable too if you happen to find a good clearance somewhere.
Fulfillment by Amazon simply means that it's coming out of their warehouses. Third party sellers (like me) just bag up the items, label them, and ship them to the warehouse. Then you wait for orders to come in and Amazon handles the rest.
For the most part, this system has worked fine. Sellers that scam or get too many refunds get banned for life, and Amazon has not been known to be lenient. I'm not sure how these Chinese sellers are getting around that. From what I've gathered, they're mostly targeting private label products. Instead of selling knockoff Keurig machines or whatever, they copy products that small-timers bulk ordered on Alibaba and rebranded. So when an American seller "creates" a shitty garlic press, the Chinese create shittier ones and undercut the price. That way the customer has no idea that it's counterfeit, they just think the brand is cheap crap. Most products like that are anyway.