The data alone show that selling on Amazon FBA is now an easy choice for many professionals Amazon sellers – 75 percent of the top 100’000 sellers in the United States and about 2/3 of all third-party sellers who sell on Amazon utilize the company’s fulfillment service.
The first thing to be aware of the Amazon FBA program is that it’s not just a single service, but rather a variety of services offered under one roof.
This offer lets Amazon sellers shift numerous fulfillment tasks back to Amazon and simultaneously receive sweet benefits such as increasing your odds to win in the Buy Box.
What Is Fulfillment by Amazon?
Amazon itself describes the function of FBA effectively in five phrases: “You sell it. We deliver it.”
For a specific fee for the fulfillment, marketplace sellers can contract this service, and let Amazon handle all logistics steps related to FBA products needed to fulfill an order. This is among other things
- the storage of goods
- the compilation of orders
- shipping,
- 24/7 customer support available in various languages,
- and managing returns and refunds.
This way to achieve this goal, an FBA seller delivers the product to Amazon fulfillment centers from which Amazon is in charge of any further steps. This can include, for example, the distribution of stock to other centers of logistics based on the demand of the particular order.
What are the specific advantages of Amazon FBA to your company? From the warehouse to the consumer’s doorstep, Amazon handles all of this, which leaves you more time to do other things like making your listing look better with Amazon A+ Content, or perhaps, just relaxing or taking a nap.
Who the most benefitted from FBA?
It was in 2006 that Amazon made its logistical system and customer service available to third-party sellers too. The intention was to assist sellers in getting to the same level as Amazon in terms of the logistics aspect and customer service.
- Sellers of small and inexpensive items, in which shipping and packaging cut in the profit margins.
- Small businesses that are unable to afford the same infrastructure as Amazon offers for customer support and shipping.
- Small businesses that do not have the capital to build large inventory or are just too large to have to move out of their garage.
What does this mean in particular?
Even if you own an insignificant business with limited knowledge of e-commerce, you can create a huge product line and access millions of customers via Amazon FBA all by itself.
One reason for this is that the service allows for automatic enrollment to the Prime program which is a favorite among clients mainly because it ensures speedy delivery, regardless of where you’re shipping to.
Amazon FBA and the automated Prime program that you can get through it is an essential feature for numerous sellers. Numerous Amazon customers only buy Prime products, and they actively conceal other promotions in the results of their searches.
While selling on Amazon with no FBA however having Prime Status is made possible, sellers need to first demonstrate they can meet the strict requirements of their logistics. For small-sized retailers, this isn’t possible.
How to Find the Correct Product to Sell on Amazon FBA
Yes, having your inventory in stock always is essential to selling successfully. But, you must discover the best items to keep. Research on the product to prepare for Amazon FBA is vital whether you sell through private Labels and Wholesale.
So, before you decide whether it’s safe to source goods via Alibaba to Amazon FBA, invest some of your time focusing on the products you’re planning on looking for, to begin with.
You can find almost everything you’re looking for on the internet marketplace, but this doesn’t mean you should not spend your time, especially if you plan on executing bulk operations.
It is possible to use the Amazon FBA sourcing tool for research on your product, but you could also keep the eye on the stock of your competitors or the bestseller ranking for ideas. The products that have a slow sales rate or haven’t received any orders ought to be removed from your inventory whenever possible.
Amazon FBA Fees and Returns
Naturally, this service isn’t available at no cost. Amazon FBA prices are charged in addition to the standard sales charge. The price is based, particularly on the location of storage as well as the kind of item size, dimensions, as well as mass of the product.
Additionally using Amazon FBA can result in higher storage charges per cubic meter as well as per month. Remember that storage costs are higher for items you are storing within your stock for more than 365 calendar days.
The fees you must be aware of include (Amazon FBA) storage charges on your merchandise, transport charges, and tax.
Additionally, keep in mind that there are order cancellations and a lot of mistakes that occur in the aftermath of these returns are typically transferred to the consumer. You can make use of the Amazon FBA profit calculator.
Recommended guide: What is Amazon Brand Registry.
