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Amazon FBA Guide

created on 21-Tuesday-April-20 02:31

Amazon currently offers amazing opportunities for entrepreneurs looking to get their products to a broader audience or who are considering starting an online business. If you are considering selling on Amazon, then you might just be taking a step in the right direction. 

Currently, Amazon gets over 2.5 billion shoppers monthly, making it an excellent avenue to reach your target audience. For more than twenty-four decades, Amazon has managed to gain the trust of several shoppers all over the world. Selling on Amazon has also been made much easier with the Fulfillment-by-Amazon (FBA) program. So, with the FBA program, you don’t have to worry about the logistics of selling products. Also, specialized software tools for sellers such as Jungle Scout, Helium 10, IO Scout, and others can help with sales prediction, FBA calculation, and a number of other important tasks. 

Since its launch, several Amazon sellers have endorsed the Amazon FBA program as a recipe for success when starting a business on Amazon. This article highlights some of the crucial points top note when getting started with the Amazon FBA program. 

how to start amazon fba

What is Amazon FBA?

As mentioned earlier, FBA stands for Fulfilment by Amazon. And it is a scheme developed by Amazon to help sellers handle the difficult part of the job. FBA services cover a wide range of activities, from storage to the shipping of items when ordered. All you need to do as a seller is ship the products to the designated Amazon fulfillment center. 

There are over 100 Amazon fulfillment centers within the U.S alone. A lot of sellers have adopted the scheme due to the convenience it offers sellers. Simply put, with Amazon FBA, Amazon does all the hard work. 

How to Sell on Amazon FBA

Here’s a stepwise guide to getting started with using the Amazon FBA plan:

·      The first step is to sign up on the FBA plan when signing up as a seller on Amazon. 

·      Once this is done, you can move on to sending your products to a designated Amazon fulfillment center. The fulfillment centers are simply large Amazon warehouses run by Amazon employees and robots.

·      Once your product gets to the fulfillment center, it is added to the inventory and sorted accordingly. And in the event that one of your products is damaged in the Amazon fulfillment center, you are paid the retail price of the product. 

·      Also, when there is an order on your product, Amazon handles the transaction for you. The entire process is automated, so you have nothing to worry about. 

·      Amazon also handles all necessary follow-up processes involved in the delivery process. If there are any complications involved in the process, Amazon also takes responsibility for the whole process. 

What You Have To Do As An Amazon FBA Seller.

Even though Amazon handles the difficult part involved in the selling process, FBA sellers still bear some responsibility. Some of this responsibility include:

1.     Choosing the products 

Although Amazon handles all the backend work, you are responsible for making the major choices, like the product to sell. However, there are software tools that can help you with insights on the existing opportunities with respect to products. 

2.     Keeping inventory 

Amazon will inform you when you’re running low on stock; however, it is up to you to ensure that you don’t run out of stock. 

3.     Promotion and advertisement 

Also, considering the high amount of competition, you might want to do some extra work to make it easier for people to find your products. 

What does it cost to use Amazon FBA?

Another integral part of using Amazon FBA is its cost. Considering that the service covers a wide range of things, it can sometimes be difficult to calculate the cost of using the Amazon FBA service. However, there are software tools that can help with this. 

The cost of FBA majorly depends on the type of seller account being run. Currently, there are two types of Amazon FBA accounts for sellers: individual and professional. While the Individual seller accounts are free, they come with higher sales fees. Professional accounts come with a subscription fee of $39.95 per month and lower sales fees. If you would be selling over 40 items per month, then you should consider getting a professional account. However, for starters who might want to start slow, an Individual account is recommended. 

 


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