Amazon FBA: Complete Expert Guide
WHAT IS FULFILLMENT BY AMAZON (FBA)?
So what is this game-changing way of selling your products you ask?
Amazon has been able to innovate and create one of the most advanced fulfillment networks in the world, with the smart idea of contributing to help other people’s businesses in the process. It’s a service that basically has Amazon store the products that you sell in their fulfillment centers.
They will be able to do everything from picking, packing and shipping your product with provided customer services. This has supported so many businesses already, as it helps you scale your business and be able to reach the customers you weren’t able to before.
A survey was done in 2014 showing that 71% of FBA respondents have reported that their unit sales have increased to 20% more on Amazon.com once they have joined. This can help your business too. Let’s take this example: Back in the day, if you wanted to ship items to your customers, you would have to do it one at a time rather than all at once.
This meant that as business and sales got better, then you would have to hire employees and more warehouse space.
Basically, you’d have a headache. What Fulfillment by Amazon had done, is that they had taken away all the headache of past problems and provided a simple solution to the problem: You will ship your products in bulk to Amazon and Amazon will be the ones to pack and ship each individual order that you have received for you Isn’t that amazing?
That Isn’t The Only Benefit Of FBA But, simply disposing of the headache of shipping isn’t any different to all the other fulfillment centers out there that provide the same service Amazon does. Now you’re asking:
What’s the big deal with Amazon’s fulfillment centers then?
Well, you don’t just have all your products in one place and being shipped for you, but your sales will definitely jump, not just sissy kids jump, but like really a jump when in the use of FBA.
Why Does Sales Increase?
The reason your sales increase when using Amazon’s FBA is that now your products can qualify under the Amazon’s Free Super Saver Shipping.
This basically means that Amazon will be able to offer to your customer free shipping when there is a purchased done over $25 It’s not over because Amazon will also be able to offer their Amazon Prime members Free, Two-day shipping on all of your products.
Now, if you think about it, as you are shopping online do you think you would prefer to buy from a seller that is able to offer you a 2-day shipping for Free? People would die for that 2-day Free Shipping. If it weren’t there, there would be more of a chance that your customers would just pass on your products. In the end, most of your potential customers would be passing, due to the hassle of adding shipping fee and long shipping time. Fulfillment by Amazon is able to remove this hurdle along with your headache.
This Business Does Not Sleep Since Amazon has the responsibility of shipping your products to all your customers, it has to work 24 hours a day in order to make sure that your orders go out fast and can be delivered on time to customers.
You are able to even go on vacation and your business will be able to run on autopilot for you, orders will be able to come in and products will go out as you sip on that Pina Colada.
A Growing Internet Business Instead of attaining the expensive warehouse space that you need and all the employees you need to hire in order to ship your orders, you are able to work at home and be able to ship your products to Amazon in bulk.
You know what?
You can even have any imported goods shipped directly to the AmaAmazon fulfillment centers. This type of business model allows you to grow rapidly without the need for all the tremendously expensive warehouse space and equipment that would add on to the costs of your business.
You are also able to use this model as a way to manage and ship the orders that your customers have placed in other online markets such as eBay, Buy.com, and others. What Are The Products That You Are Allowed To Ship To Amazon?
Amazon may have started out as an online outlet for selling books, but it has definitely improved how it was before. People can now buy jewelry, lawnmowers, beds, electronics and even exercise equipment.
You want it; just name it.
You have the ability to ship even media items like books and non-media items like toys, home or garden items and much, much more.
The Fulfillment By Amazon Fees The Fulfillment by Amazon fees are considerably low, which makes it definitely beneficial for those who have just started out in this business.
The fees may be updated from time to time and change, but the following are what you could expect: Fee for Picking
(Per Order) = Approximately $1 Fee for Packing (Per Order) = Approximately $1 Weight-based Fee (Per Order) = Approximately $0.40
for every pound being shipped to a customer Storage Fee = Approximately $0.45
for every cubic foot of storage space that you may need to attain Inbound
Freight = What it may cost you to ship your products to Amazon What’s great about inbound freight fee is that Amazon will support you by partnering you up with them on shipping; this means that you will be able to use their shockingly low shipping rates.
All you have to do is to tell Amazon how big and heavy your package will be and the website will produce a label for you to be able to place on your box. Easy and Simple, don’t you think?
To see Amazon FBA’s latest fee charges, please check FBA Fulfillment Fees page.
Does FBA Work Only For People Working From Home?
Of course not! There are even businesses that have already been in the business of selling online and had already been able to sell thousands upon thousands of products in their online stores even though they weren’t using FBA.
After joining the FBA program, their sales and business had increased tremendously. Is It Possible To Have A Right And A Wrong Way To Use FBA?
Yes, there is. This is more in the sense that there are strategies that would definitely help your business when using the FBA tactic and there are strategies that would just bring your business down. Here’s an example:
It would be most unfortunate for you and your business if you had decided to purchase vast amounts of products and ship it to the Amazon fulfillment centers just to realize that numerous amounts of other people have already done the same thing you did. You need to be able to think strategically when you come into this business; you can’t just go in blindly.
Ask yourself this: ‘What can you and your business provide that no one else has already?
‘or ‘What can you sell to be unique from all the other businesses?’
If you want to be able to achieve the different from the usual, then list all the products you have noticed that has not already been in the FBA and you will be able to benefit immensely if you are able to follow this strategy.
Once you take a look at the products that no one else is selling then you are able to sell your products without the worry of the competition within your online market. Make sure you look for those items that differentiate you from the rest and can be considered desirable to all your potential customers and you will be able to gain so much more sales than you could have ever considered gaining.
a. Reasons To Choose Amazon For Selling
There are numerous other online markets to sell from, Amazon and eBay are two examples. They are both highly successful platforms for selling although they have differences in their operation, shopping experience.
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Sellers may get confused as to where and who to go to sell, here’s a quick guide as to why choosing Amazon would be most advantageous to your business compared to the rest.
1 - Elegance And Simplicity
Amazon has a very simplistic and organized selling platform in the industry. Comparing Amazon and the other online selling platforms, the others may have a longer process to go through just to get selling.
Amazon’s web store interface is also elegant and simple to use which will make your buyer’s shopping experience a more enjoyable one.
2 - Attaining Fulfillment Without
The Hassle When using another online market platform, it would be up to you as the seller to see that your buyer gets what they paid for. This basically means that you will either have to create and maintain relationships between fulfillment partner(s) or that you would have to handle your own fulfillment (all the inventory, packaging, and shipping) all on your own.
When in Amazon, you can use their Fulfillment by Amazon, just send everything to Amazon with no cost and let them deal with your headache.
3 - Reduced Overhead
The way Amazon has created its system does not just provide the fulfillment platform, but it allows provides the opportunity to reduce their overhead expenses. Since, in Amazon, you don’t need to produce your own listing or continuously re-list your items on Amazon.
Your maintenance overhead levels, as time goes by, will reduce. The same things happen for the communication time since the buyers and sellers rarely need any communication.
4 - Better Visibility As A Smaller Seller
As a seller that may be just starting out in an online marketing platform, you may be one of those people buried at the end of the search list and covered by all those top-sellers or those that high-level feedbacks due to the innovation of the best match search system.
What Amazon does is that they have created a system that when buyers are searching for an item, the sellers that are shown are rotated. This allows for the new sellers to gain exposure. Since the buyers that go to Amazon, don’t technically need to evaluate the sellers then there is almost always guaranteed sale.
5 - Be Where The Industry Has Growth
The online marketplace platform of Amazon has been growing much more rapidly year-by-year than that of any other online marketplace platforms is growing.
So, if you want to be in action then Amazon is for you.
From what this chapter has mentioned, Amazon has a lot to offer than that of any other online marketing platforms. However, Amazon isn’t for everyone; we all have our own dissenting opinions on its operation. But here are just a couple of points that will help you contemplate on the possible advantages you can reap from Amazon.
Amazon isn’t Amazon today without the immense marketing and advertising strategies; a pinnacle of technological commerce in the modern era. Amazon is growing in consumers and members each day reaching out to various parts of the globe. One of the apparent benefits of selling on
Amazon is the millions of people and markets it is currently attracting.
It presents you with open access to sell your products in all five Amazon marketplaces in the safety of your home.
There are more chances of you selling your product here than at the local mart.
More exposure, more consumers, more money. It’s completely understandable that you’re just not used to doing things online and prefer more tangible methods of earning money. However, everyone is using Amazon to expand their business horizons, either surf the wave of revenue or be attached to traditional concepts of business.
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Amazon is constantly upgrading to keep up with the dynamic world. It’s not to say that you should immediately shut your website or store or any personal retail outside of Amazon; the situation is relative. If your website offers more income to your pockets, then so be it. Nevertheless,
Amazon will give you, even more, opportunities on top of your standard income.
The idea of it excites you, otherwise, you wouldn’t be reading about what you can benefit from Amazon.
There’s no costly rent in comparison to tangible stores, you don’t even need to worry about location. You can save the hassle of marketing your products and have people familiarize your brand. As long as you follow these rules and have the ethical and positive approach to this business, you’re good to go.
Perhaps you doubt the faithfulness of the people you transact with; scammers, fraud and all. Have no fear. Amazon’s security is something it should boast with novel ways of protecting you and your customers - from strict regulations on timely payments to traceable shipment. Disobedience to the rules will either lower your status to make it difficult to conduct business or ban you completely.
Amazon has little tolerance to fraudulent schemes to create a protected working environment for all.
You may think that the added fees on top of your products don’t leave you enough room for profit. You may believe that in the end, you’ll be the one making a loss.
I beg to differ. Amazon has generated components to make it as trouble-free as possible. Features, like the fixed price of the Pro Merchant Subscriptions, actually gives you a heads up on your expenses calculations.
The Fulfillment by Amazon (FBA) offers
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