Fulfilment By Amazon FBA – What Is It & How Does It Work?
Amazon has become the go-to marketplace for shoppers and businesses alike. For businesses, selling on Amazon allows them to tap into a vast customer base that they may not have had access to otherwise. However, with this increased exposure comes increased competition. In order to stand out from the crowd and make the most of selling on Amazon, businesses need to take advantage of fulfilment by Amazon, or FBA. But what is Amazon FBA? Keep reading to find out.
What Is Fulfilment By Amazon (FBA)?
In short, Fulfilment by Amazon (FBA) is a program that allows businesses to utilize Amazon’s world-class logistics network to store, pick, pack, ship, and provide customer service for their products. This essentially allows businesses to outsource their fulfilment needs to Amazon, freeing up time and resources that can be better spent elsewhere. And because shoppers trust Amazon’s customer service and shipping times, utilizing FBA can also help increase sales.
How Does Fulfilment By Amazon Work?
If you have an Amazon Seller Account and are interested in using FBA to fulfill your orders, there are a few things you need to do first. First, you need to create an account with Amazon Seller Central. This is where you will list your products and manage your inventory. Once your products are listed, you will need to send your inventory to an Amazon fulfilment center. You can either ship your inventory yourself or use one of Amazon’s approved logistics providers. Once your inventory arrives at the fulfilment center, it will be checked in and stored until an order is placed.
When an order is placed, Amazon will pick, pack, and ship your product directly to the customer’s doorsteps. And if a customer has any issues with their purchase, they can contact Amazon’s award-winning customer service team for help – not you! As you can see, fulfilled by Amazon takes a lot of the hassle out of running an eCommerce business – giving you more time to focus on other aspects of your business such as marketing and product development.
What is the cost for Amazon FBA?
The buyer pays no cost however the FBA seller has to pay for various additional fees for the FBA service including: storage fees, fulfilment fees, monthly inventory storage fees, labelling fees and other fees to cover there cost of the fulfilment centres and the FBA fees Amazon is incurring themselves. Shipping costs are very low compared to other methods, because of the efficency of Amazon’s fulfilment centers and partners. You need to be careful to only send fast selling products to Amazon FBA because otherwise you may have an issue with excess inventory, monthly storage fees etc.
FBA can be great if you are listing your own brand or private label products as the benefits to Amazon sellers of FBA, like Prime and not having to handle shipping or fulfilment costs yourself can help you sell more, or sell at a higher profit margin, despite the fulfilment fees that Amazon charge. FBA sellers are among the most successful sellers on Amazon.
If you’re selling on Amazon but aren’t using Fulfillment by Amazon (FBA), you could be missing out on some serious benefits. Not only does FBA free up time and resources that can be better spent elsewhere in your business, but it also increases sales thanks to shoppers’ trust in Amazon’s shipping times and customer service team. So if you’re not already using Fulfillment by Amazon in your business, now is the time to start!
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