Ever since, Amazon FBA came into the picture, E-Commerce business has never been the same. Amazon FBA has become one of the most popular ways to earn online income. In fact, 50% of amazon’s product sold in Q1 of 2017 were not even owned by Amazon.
So, if you are looking to sell on Amazon, but you have no idea where to start. Don’t worry, because today I have documented a step by step process in order to get you started with Amazon FBA.
What is Amazon FBA
For those of you who doesn’t know what is Amazon FBA. Amazon FBA (Fulfillment By Amazon) is a service provided by Amazon to make the selling easy for their sellers.
By using Amazon FBA, sellers can store their inventory at the Amazon fulfillment centers and when a customer orders one of their product, then Amazon will Pack, ship and track the order for them. However, Amazon charges an inventory storage fee and some other cost are also involved.
Why you should use Amazon FBA
Now, that we have understood what is Amazon FBA, let me explain you the advantages of using Amazon FBA services.
1. Amazon is widely popular
Amazon has more than 300 million active customers which makes it widely popular all over the globe. According to a stat, the average customer spends $700 per year on Amazon and prime customer spends roughly $1,300 per year.
So, If you use Amazon FBA, your product will catch more eyes which will result in more money.
2. Amazon FBA handles your customers.
As an Amazon FBA seller, you don’t have to take the stress of dealing with your customers. To ensure customer satisfaction, Amazon handles all the work from procuring to delivering your product.
3. Amazon FBA is cost efficient
Amazon FBA handles all of your shipping cost which are included in your main fee, so there are no extra charges for any order.
Also, you are only going to be charged for the storage space and the orders fulfilled.
Note: additional charges may apply for additional services.
4. Provides Multi-channel fulfillment
Multi-channel fulfillment helps your business to grow at a faster rate. The inventory you store in Amazon’s warehouse can also be sold to other E-Commerce platforms by using Amazon FBA.
How Amazon FBA works?
In order to use Amazon FBA, you just need to follow some of the simple steps mentioned below:-
- Activate your FBA services
- Prepare your products
- Send your products to Amazon
- Amazon stores your product
- A Customer purchases your product
- You get paid
1. Activate your FBA services
Firstly you need to create a selling account on Amazon. Once you have created a selling account, then there will be an option to add FBA to your account. It will only take your few minutes as you will be guided through the steps on the website.
2. Prepare your products
To ensure your product is safe and secure during transportation, you can also place an order on Amazon for their preferred prep and shipping supplies that will be delivered to you within the timeframe.
3. Send your products to Amazon
Amazon owns several warehouses all over the world, some of which are over a million square feet. You have to inform which product you are sending and they will tell you where to send it (Warehouses).
4. Amazon stores your product
Once Amazon receives your product, they will add them into their inventory. In case, your products gets damaged in the warehouse, then Amazon will reimburse you.
5. A customer purchases your product
Amazon’s billing department will take care of the entire transactions on your behalf. Once the order is placed, Amazon will then procure and ship your product to the customers.
6. You get paid
Amazon will calculate all of your sales every 2 weeks. It deducts your merchant fees and deposits your profits into your registered bank account.
I would definitely recommend you to go ahead with Amazon FBA, but first I will advise you to build trust with Amazon and let them know you are not here to make quick bucks. Once you do that, then you are most likely going to make profits by using Amazon FBA.
Hopefully, This article helped you in answering all your questions about what is Amazon FBA and how does it work. If you have any other doubts you can feel free to comment below and we will be happy to assist you.
To Sign Up For Amazon FBA – Click Here
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