Making it into the eCommerce industry can be stressful for those who have no prior experience in the business. Even for those with decades of business experience, however, the process may be a bit difficult.
It’s possible to use the Amazon FBA (Fulfillment By Amazon) program as a fantastic business model to begin with to lessen the initial learning curve when starting an eCommerce business from the ground up.
It works just like every other eCommerce company, but it does not have some of the most complex issues of operating an eCommerce company like logistics and warehousing. Packaging and even shipping to clients.
Does this sound too amazing to be real? If you know the fundamentals of how the Amazon FBA system works, you can have your own business operating in less time than you think!
What is Amazon FBA?
FBA means “Fulfillment By Amazon” and their slogan is “You sell it, we ship it.” Amazon has worked to develop a fulfillment network that is packed with sophisticated features that have proved to be helpful to all kinds of eCommerce sellers.
Through Amazon FBA, sellers have the option of storing their stock in one of the Amazon fulfillment centers, and Amazon makes use of their experience to choose up, pack and deliver the merchandise to their customers’ addresses.
They even offer customer support for the products that they have shipped! This is an excellent method to grow any company and reach potential customers across the globe.
How Does Amazon FBA Work?
To be able to utilize Amazon FBA or the Amazon FBA services, eCommerce merchants must go through the steps below:
Set Up Your Fba Services
If you do not have a Selling through Amazon account it is necessary to create one. After you’ve done that there’s the option of adding FBA to your account. Just follow the instructions and establish it.
It’s a simple process and you’ll be shown the steps on the website.
Create The Product Listing & Inventory
You can add specific items into the Amazon catalog one at a given time, or include them in bulk.
The most impressive feature Amazon offers is that you already have an Inventory management software you can join it to Amazon’s API to make it easier to integrate your inventory and product listing.
Prepare the Products That Will Be Delivered
Your products should be prepared in the manner in which you want them to be received by the customer, i.e. “e-commerce ready.”
If you require specific supplies to ensure that the product remains safe and secure during transportation until it reaches the customer, you can place an order on Amazon for their “preferred prep and shipping supplies,” which will be delivered to you quickly.
Send Your Items To Amazon
To do so, you’ll need to devise a shipping strategy that includes things like locating the best shipping carriers.
Amazon has partnered with several carriers to offer FBA clients discounted rates, making it cheaper and easier to ship and track your items to the Amazon FBA Centers. For more information, consult Amazon’s online seller tool.
Customers Order Your Products
Prime customers get the same free shipping and super fast delivery for your products as they do for any other Prime listed product on the Amazon marketplace, just like they do.
Before you place your orders to stock your inventory, you must understand how much of a cut Amazon will take. SellerApp has created the Amazon FBA Calculator to make it easier for you to calculate your revenue.
These figures are important to understand because they allow you to calculate how much profit remains after deducting all possible costs and fees, putting you in a better position to negotiate with your supplier and set aside funds for other expenses such as shipping.
Why Should You Use Amazon FBA?
There are numerous benefits to using Amazon FBA services. The company takes pride in being able to provide the growth capabilities that eCommerce businesses require to become global players in the industry while also saving eCommerce merchants a significant amount of time in the process.
Simplicity and cost-effectiveness.
The main fees are for storage space and orders that Amazon fulfills—it operates on a pay-as-you-go basis.
Increased Opportunity
Amazon focuses on the finer details of each transaction, allowing you to focus your valuable resources, such as time and energy, on the things that truly matter and will benefit your business.
Because there is no minimum number of units required to ship with Amazon FBA, the fulfillment centers are truly designed with eCommerce merchants in mind.
Excellent Customer Service
As previously stated, Amazon’s FBA service handles all customer service requests, returns, and refunds related to the platform.