FBA, Fulfillment by Amazon is a service provided by Amazon that provides assistance to its sellers straight from storage to packaging and shipping which provides flexibility in their selling practices. This solution helps the sellers to ship the merchandise to an Amazon fulfillment center where the products are safely stored in the warehouse and when an order is placed, then the Amazon employees prepare and ship the products to the buyer.
How does Amazon FBA work?
To add products in Amazon FBA, one just needs the Amazon selling account and thereafter Amazon takes it forward via the following steps:
Step 1: Seller send the products to Amazon FBA
Step 2: Amazon FBA stores your products
Step 3: Customer orders for your products
Step 4: Amazon FBA picks and packs your products
Step 5: Amazon FBA ships the product to the respective customer
Amazon FBA deals with everything right from storing your product in the warehouse to maintaining your inventory. Amazon deals with the whole transaction and the customer service which includes returns and refunds. Every two weeks, Amazon deposits the sale profit of the product directly to the seller’s bank account. It also handles the customer emails that notify them about the shipment and delivery date. The seller just needs to provide the stock to Amazon FBA and earn the profit.
This is what Amazon takes care of but as a seller, there a few things that you need to take notice of.
Choice of product: It is the seller who has the right to decide as to what product will he send to the warehouse for sale.
Keeping a check on Inventory: As soon as your inventory is low, Amazon notifies the seller but the seller has to replenish the stocks when required.
Maintain product listing and market the products effectively: Amazon is just the platform, but it is the seller who needs to write an effective product description and title so that it catches the buyer’s attention.
Let us now know the benefits of Amazon FBA
Amazon’s name associated with the product: The name ‘Amazon’ associated with the product helps in gaining trust and assurance easily. It is most appreciated by the customers as they can expect excellent customer service and on-time delivery.
Amazon’s Excellent Customer Service Management: Amazon has exceptional customer service management that helps a customer solve all its inquiries, handle returns and refunds. The seller is free from this service and Amazon doesn’t charge for this exceptional service except for the Return Processing Fee.
Less Shipping Fees: Amazon, as a brand has contact with shipping companies and sellers using Amazon FBA would be charged less for shipping than the products being delivered individually. Moreover, there is an option for the seller to ship the product free as there are many buyers who are eligible for Amazon Prime and Free Shipping.
High Ranking Of The Product For Better Visibility: By using Amazon FBA, the products appear higher in the search results. Moreover, being an FBA seller, the price of the products is listed excluding the shipping charges which make the product rank first in the search result.
Increased Productivity: As Amazon takes care of all the services, inquiries, returns, refunds, packaging, shipping, then the seller has ample time to focus on the business and its productivity.
Run Business From Anywhere: With Amazon FBA, the seller gets the flexibility of working from anywhere in the world and can still handle all orders 24*7.
Therefore, Amazon FBA provides the seller with all the important benefits which would eventually help them focus on the growth of the business.
How to Become Amazon Prime Seller?
You can become an Amazon Prime Seller in three ways:
Amazon FBA: As Explained above Fulfillment by Amazon (FBA) is a solution where Amazon picks, packs and delivers your product to the customer. By choosing FBA, you become eligible for Prime membership.
Local Shops By Amazon: This program is for the owners who own a store and can deliver the order quickly within two days to the nearby pin codes using a third-party courier or his associates. Choosing this program makes the owner eligible for Amazon Prime badge for the nearby Pincode.
Seller Flex: Seller Flex program provides the seller with all the benefits of Amazon FBA and with the choice of warehouse location. This helps in high ranking and higher selection of products as Amazon promises for one or two-day delivery of the products.
Amazon FBA can be an incredible option for you as a seller to grow your business and reach new customers. It can help in increasing productivity and making sales. For many Amazon sellers, Amazon FBA is a simple way to reach new customers and to outsource the products but before starting, one should carefully read the rules and regulations.