Question 1

What is the main difference between Amazon FBA and Direct to Consumer?

Accepted Answer

Amazon FBA leverages Amazon's existing infrastructure for fulfillment and customer access, while Direct to Consumer (DTC) involves building your own brand and customer base through your own website and marketing channels. Both are viable for private label brands, but they require different strategies for growth and exit.

Question 2

Is Amazon FBA or DTC better for an exit strategy?

Accepted Answer

The best model depends on your goals. An FBA business can be attractive to buyers looking for a streamlined, cash-flowing asset, while a DTC brand with a strong customer list and brand equity can command a higher multiple. This episode explores how to build for an exit with either model.