Before we jump to any conclusions about FBA, let us know a little about what it is and how it works for sellers? With so many queries flooding every day, we thought of answering a few basic questions about Fulfilment by Amazon and let our readers know all about it to start with. Let us take one step at a time and understand this amazing service provided by Amazon for millions of its sellers:
What is FBA?
Amazon is known by everyone in today’s time. Every 1 person amongst 5 has bought something or the other on Amazon. When you order anything on Amazon, you might be actually buying that product from a third-party vendor selling on Amazon through FBA. Amazon enables this service to look after the seller’s stock, takes the order and by-passes the seller to pick the order from the warehouse and deliver it to the customer.
It also handles the customer service and returns management for the shoppers on behalf of the seller. For the customer, there is no difference between purchasing from Amazon directly or from a seller selling his good through FBA on Amazon. They get the same delivery options, returns policy, and similar customer experience.
As a seller, you do not have to worry about delivery, returns and customer service as this is all handled by Amazon. You can sell anything from anywhere and Amazon will take care of the logistics, packaging, and operations. You can also opt for private labeling to build your own brand while letting Amazon take care of the rest.
How to start selling on Amazon through FBA?
First thing first – You need to have an account on Amazon to start selling on this platform. Create a seller account to enable your FBA service.
- Open Amazon’s website, scroll down to the footer and search for “Make Money with Us.” Click on the link that reads “Sell on Amazon.”
- You can either sign up as an “Individual” or a “Professional.” The difference is the subscription fee.
- When you sign up as an “Individual,” there is no monthly subscription fee. But if you’re looking to build a business over time, then you should sign up as a “Professional.” However, the first month is free, and after that, it’s $39.99 per month plus selling fees.
- Follow the instructions on the screen and complete the simple process.
Assuming you already have a line of product which you want to sell on Amazon, the most popular way to do this is through private labeling. The idea is to establish your brand, promote it, and sell it on Amazon.
Conduct product research and see if your chosen product is unique or Amazon already have dozens of similar ones. Look into the product’s popularity as well. If you enter an unpopular product category and sell it for more than your competition, your business could go south in no time.
Do a competitive analysis to see if your product is better than your competitors and how you can create your niche.
There is another popular way you can highlight or sell your products on Amazon. This is possible with retail arbitrage which includes buying a brand name product and selling it on Amazon for profit. This is a short-term profit scheme and is easier to start with.
Source your Products
Once you have finished your research and zeroed on the products you want to sell, its time to relax. Hell No! Do not sit back but instead gear up to find the suppliers for the new products you just identified to sell on Amazon. Finding a supplier can be very time consuming but once you find the right supplier, it becomes easier to start your business and continue it.
A good idea is to purchase a trade magazine and look for domestic as well as international suppliers for your products. When choosing different suppliers, check to see if they manufacture other products which you might list in the future. If they do, establish a long-standing relationship with them to run your business.
When sourcing products, you should also consider how they will be shipped. Consider if you can afford to source your products by boat, by air, or by train depending on whether you are sourcing them from overseas or domestic markets. Check for government rules and regulation that apply in your region regarding the same.
So far, we have served you with information about how you can start selling on Amazon through FBA. Watch out for more articles on how to market your products when you sell on Amazon. Make your business a success with Amazon FBA and grow with it continuously.
For further consultation on Amazon FBA network, you can reach out to experts at WebBee Global and receive excellent services in e-commerce.