FBA Automation We Sell The Products, Amazon Delivers
programs
Your Future Starts Here
We Know The Importance Of Running An Amazon-Approved Business Model.
FBA stands for “Fulfillment By Amazon”. Our team will open distributor contracts with manufacturers in the USA and ship those products to an Amazon Fulfillment Center. Amazon delivers each individual order with their Prime One Day / Two Day Shipping Guarantees.
We also own our Warehouse Network and prep products for you for much cheaper rates than Amazon will so you always have a higher ROI
Features At A Glance:
If you have a high cash budget ($65,000+), we can approach a small – medium size brand on Amazon that currently sells 1000-5000 UNITS per month and become the sole distribution source of their product on Amazon. We handle their compliance department requests, product safety requests, trademark registry, we do everything for them, and in turn they ONLY sell products to you. Your business is the exclusive seller of their products on all of Amazon.
These types of contract are the most profitable types of contracts in the realm of e-commerce. ROI typically starts at around 45% for these and can be as high as 60^ for these types of contracts since we get business pricing, wholesale discount, and an added discount for helping the brand grow.
Please contact us if you qualify & would like to learn more about this opportunity
If your business is running a proper FBA model with League of Ecom, you should expect an annual ROI of 60% or higher.
Each distributor contract comes standard with business pricing so we get discounted rates on products, and with a wholesale purchase we get an additional discount depending on how much inventory we buy. The more you spend, the cheaper each unit is
We have strategically placed warehouses near 2 of the four biggest ports in the USA: San Francisco and Los Angeles.
By December 2022, we will have two more warehouses open in Miami and New York (Third and Fourth largest ports in the USA).
With these strategic locations, all of our Clients will have fewer shipping costs for goods leading to much higher ROI compared to shipping products to states like Texas
In almost all cases, only products fulfilled by Amazon themselves have Prime Shipping. In FBA, we are ordering products wholesale and delivering them to an Amazon facility to Amazon can fulfill each order, hence the name FBA (Fulfilled By Amazon). All products sold in this program are eligible for Prime shipping.
FBA is the most stable form of fulfillment. We are purchasing a set amount of inventory and this inventory is counted and logged upon shipment from the distributor, entrance into our facility (if product prep is needed), leaving our facility (if product prep is needed), and Amazon does a final inventory count before making the listing active.
It is impossible to oversell inventory or not have enough stock for orders. Returns and customers service are handled 100% by Amazon. If your customer has any issues, they will be instructed to contact Amazon Customer Support directly. With Amazon handling this part of the business, it creates stability in the model and makes it sustainable long term.
We work with nothing but top tier brands in the USA. When we sell their products, we don’t need to pay to advertise. The brands will handle all the marketing for us
League Of Ecom has all the required documentation to get your business ungated for top tier brands and restricted categories.
*Note: We’ve seen many agencies claim they can get your business ungated for specific brands, however being ungated for a brand on Amazon DOES NOT mean you you have approval to sell their products. Your business still need a distributor contract with an authorized retailer to sell branded products
We Don’t Believe In A Cookie-Cutter Business Model.
Each store we accept into our programs is tailored towards the Client. First we need to understand what your goal for the business is. Is it to grow your wealth? Is it to be a supplemental form of income, or are you looking to replace your income entirely? What are your profit goals per month? Contact us and our Leadership Team will sit down with you to understand your current financial situation and where we can help!
Once we understand exactly what your needs are, we will curate a custom business plan given the current season, contracts available, and a handful of other important factors to finalize a working capital amount. This way once the business is active, there is no miscommunication with expectations
Key Differentiators
Use Amazon's Fullfilment Or Ours
Amazon’s Fulfillment Center fee’s can quickly eat into your profit margins. In April of 2022, they introduced an additional 5% “Gas and Inflation” fee on top of their Ship-to-Amazon fees, pick and prep fees, storage fees, and a few other associated fees. To ensure our clients are as profitable as possible, we opened up our own fulfillment center and are capable of matching Amazon’s Same-Day, One-Day and Two-Day shipping at lower costs guaranteed. Storage is 100% free for our clients. Amazon is still very competitively priced, so we only use our fulfillment center if we can beat Amazon's fulfillment cost
Custom Store Software
Our custom AI store management software is the central hub for all of your stores under our management and provides detailed reports including inventory forecasting, estimated sell-out dates, inventory repricing, and more We can also pull reports to see the cash value of inventory on hand, different routes to liquidate inventory, and more.
24 Month Money-Back Guarantee
We are confident in our ability to build you a profitable passive income asset which is why we offer a 24 Month Money-Back Guarantee
Full Transparent Business Model
Your Client Portal shows you every brand we apply to represent, the brands that have been approved, profit analytics for every individual product, estimated delivery dates for inventory, and all other relevant information for your business.
Picking The Right Program For You
DROPSHIPPING
Must have $25,000 in credit available or have a minimum credit score of 710 to qualify
When you sell a product on Amazon, the revenue generated from the sale is not immediately deposited into your bank account. Amazon holds your funds inside of your Amazon Account until the product has been delivered AND a couple days have passed. This allows Amazon customers time to raise any concerns if your product is counterfeit or if they received a box full of rocks.
Once a few days pass with no red flags raised, Amazon will pay you. This is why credit is important in this business model. You need to be have enough credit to sustain sales from the day we order a product to the day it delivers, plus a few more days. We exclusively use USA-based distributors so all your products will have same day or one day shipping.
If you have a good credit score or a lot of available credit you don’t currently use, then this program would be the most beneficial for you.
To operate a Dropshipping business, we require a minimum of $25,000 in lines of credit (American Express, Visa, Mastercard, etc) to cover product cost. Since we only order products AFTER they have sold, each purchase on your credit card is guaranteed ROI.
The more credit you have available, the higher we can scale your business.
*This does not include initial start-up cost
In almost all cases, only products fulfilled by Amazon themselves have Prime Shipping. Since Dropshipping products are shipped from a third party distributor, dropshipping products are not eligible for Prime Shipping.
The ability to sell Prime products is a deal-breaker for many clients which is why they opt into our FBA Program instead of Dropshipping
Dropshipping stores are easier to scale compared to FBA stores due to the simplicity of the business model. FBA requires shipping to warehouses and waiting for shipping times while Dropshipping only requires us to conduct analytics and list profitable products.
The downside of having a supplier handle 100% of your fulfillment is you don’t have control over your inventory or inventory levels which opens up risk for selling products which are out of stock, shipment delays, etc.
Although you can achieve a higher revenue in this business model, you do have a smaller ROI compared to FBA.
There are many key aspects in this fulfillment model where we rely on third-party companies. The distributors we open contracts with house the inventory in their warehouses and we rely on their stock updates to ensure we only sell products which are in stock.
We rely on distributors to ship products on time and ensure packages are picked up by carriers, products are not damaged, etc.
These distributors are large, professional corporations in the USA, however mistakes do happen and when they do, Amazon will look to us for answers since we are the ones operating the Amazon account, not the distributor. With many factors out of our control, this model is more prone to minor problems such as products delivering late, damaged goods, etc. Rest assured, we are in constant communication with distributors and customers to prevent any of these issues and take a pro-active approach to your ensure your business scales smoothly.
FBA
In recent months, we have seen a large surge of investors new to e-commerce under the impression they can run an FBA business using a credit card, line of credit, etc. What’s worse is we’ve seen other agencies continue to feed these lies to investors and once the business starts, it comes crumbling down quickly. We wrote a blog on using credit for FBA and why it’s a very bad decision to do so. The full article can be found in the “News” section of our website. For your convenience, a summary is below:
From the moment you pay for a product, it can take up to 15 days for it to reach Amazon’s fulfillment center and be active for sales. It is impossible to sell out of all FBA inventory, have each order deliver, wait a few days to receive the payout from Amazon, and pay off a credit card bill all in the remaining 15 days until your statement is due.
The average Inventory Cycle is about 6-8 weeks. From the moment you pay for inventory, you should expect to fully realize the ROI within 30 days of the product reaching an Amazon fulfillment center (estimating a 30 day sellout time, plus 1-2 weeks to receive the last payment).
You do NOT want to pay interest on a Wholesale Purchase which is why FBA is a cash based program. You will pay for inventory by sending wire transfers directly to brands.
Rare exceptions to this are outlined in the article.
To scale an FBA business, we require a minimum of $20,000 in operating cash, however we aren’t starting the business off with a $20,000 inventory purchase.
First, we need to verify analytics to make sure we have accurate sell out times, then start to scale. The first few months we are ordering a large variety of small batches of products. Every store gets at least a dozen products to start. Larger stores can get up to 2-3 dozen products
Once we verify analytics with these small batches, we can test more products and repurchase previous inventory in larger quantities. At the end of every inventory cycle, we are reinvesting that capital back into the business to reorder inventory so the store can grow organically.
Below is your estimated inventory spend per month during each phase of your business. Remember you can reinvest capital from previous months back into your business:
Operating Budget
Months 1-3: $5000 Minimum
Months 4-6: $10,000 Minimum
Months 7-9: $20,000 Minimum
*This does not include initial start-up cost
FBA is a bit slower to scale compared to dropshipping due to the nature of a wholesale business model. We need to wait for shipments to deliver to the proper warehouse, product prep, and Amazon must process the inventory before its active for sale.
The plus side of this is we get a larger ROI as mentioned below, but it also becomes a more stable business compared to dropshipping. Since we have guaranteed inventory, it’s impossible to sell “out of stock” products and since Amazon is handling 100% of fulfillment, they take full responsibility if products are damaged in transit, delivered to the wrong address, etc. You don’t get the same protections in dropshipping as you do with FBA.
When you purchase inventory, you take on inventory risk. There is no way around it, however we can mitigate this risk in multiple ways.
- Contract Terms: Each contract we open for your business includes clauses which allow is to either return products, sell to brick and mortar locations, liquidate on other marketplaces, sell to other Amazon sellers, and more. We never have clients sit on inventory that doesn’t sell.
- 30 Day Sell Out Time: At no point in time will your business have more than 30 days worth of stock. By limiting inventory to 30 days worth, we can easily adjust and scale up or scale down products as needed.
- Each product has over 24 points of analytics we review to ensure we mitigate risk as much as possible. These analytics are shared with you inside of the Client Portal before every purchase.
FBA is the most stable form of fulfillment. We are purchasing a set amount of inventory and this inventory is counted and logged upon shipment from the distributor, entrance into our facility (if product prep is needed), leaving our facility (if product prep is needed), and Amazon does a final inventory count before making the listing active.
It is impossible to oversell inventory or not have enough stock for orders. Returns and customers service are handled 100% by Amazon. If your customer has any issues, they will be instructed to contact Amazon Customer Support directly. With Amazon handling this part of the business, it creates stability in the model and makes it sustainable long term.
Start Up Fee And Profit Sharing
We Make Money Together
Your Start-Up Fee covers all your initial business expenses including your corporation establishment, business licencing, website hosting / domain / SSL certificate, distributor contract labor and contract application fees. Once this payment is complete, we have a profit sharing split of 65 / 35 (65 Yours/35 Ours).