Amazon FBA – A Complete Guide

If this the first time you’re coming across the term ’FBA’, you don’t have to be worried as we’ll take time to convey to you everything you need to know about this program.

What Is Amazon’s FBA Program?

On the introduction of this program, the common question that often ensues is ’how does Amazon fba work?’.

The fulfilment-by-Amazon program is developed to allow entrepreneurs to build a fully working online business without having to break a sweat over it. The program literally depicts that an Amazon fba seller totally surrenders the hard work to Amazon.

Amazon stores your products in its colossal fulfilment centre. They go further to handle things until the product is delivered to buyers. Also, at this time, Amazon ensures that your products are maintained in the best state. They make reimbursements should any damage occur to your products.

Advantages of Using Amazon FBA

Keep in mind that Amazon is a platform that boasts of over 300 million active users. Amazon fba business is the best way to put your business in front of a very large audience. Besides providing an Amazon fba seller with a large audience, they assist the seller in various ways such as –

Reduced Shipping and Logistics Stress: If you’re someone that has ever had to handle your fulfilment by yourself then you’re surely familiar with the fact that its probably not the best of experiences. If you have higher sales then that’d consequently mean more time spent on packing and shipping. Selling on Amazon fba would allow you to evade this totally while being able to enjoy from the expertise of Amazon.

Management of Customer Support: Amazon is reputable for its 24/7 available customer support service. If you want to find the best selling products IO Scout is the cost-effective Amazon product research tool in the market.
Buyers would be comfortable working with this assistance. This would also take so much work off you.

Returns Management: Apparently, dealing with returns has never been so pleasant. From handling unsatisfied customers to dealing with the administrative aspect of everything, Amazon takes care of everything concerning this on your behalf.

Discounts on Shipping Fees: Amazon has signed contracts with some of the biggest shopping carriers. Consequently, Amazon receives huge shipping rates discounts. This advantage stretches as far as the customer who can ship some products on Amazon absolutely free.

Fast Delivery: Amazon is well spread with multiple fulfilment centres across the world. Amazon uses a system that detects the closest fulfilment centre to the customer, and then ships their goods from there. This circulation of various fulfilment centres ensures that goods are delivered in just a few days.

Provision of Potential Boundless Storage Space: Fba selling totally eliminates the payment for the warehouse. Also, you can store as little as only one product in your inventory. However, sellers who have increased inventory scores are awarded unlimited storage space.

Disadvantages of Using Amazon FBA

Risk of Increased Returns: The fact that it takes little/no effort to complete returns could lead to increased returns. You could have customers buying for the sole aim of testing.

Accumulation of Huge Storage Fees on the Long Run: It’s important to keep in mind that amazon’s primary objective is to sell products, not store them. If your product is left in your inventory for too long, you might just end up having to deal with enormous storage charges.

It Costs Some Money to Use Amazon’s FBA: Amazon charges customers conducting fba selling storage fee and fulfilment fees. It’s important to understand the movement of your inventory to ensure that your goods are still valuable after paying charges.

Preparation of Products Could be Challenging: Amazon has well spelt out instructions on how products should be delivered to them for storage. It could be quite challenging to get a grasp of all of that, especially for new fba sellers.

How to Sell on Amazon FBA?

Outlined below is a breakdown of how FBA works-

  1. Send product to Amazon.
  2. Amazon stores product in the fulfilment centre.
  3. Customers purchase products.
  4. Amazon picks up the product.
  5. Products are shipped by Amazon.

How to Find Products to Sell on Amazon’s FBA

IO Scout

This web tool helps the seller examine Amazon data in real-time. The seller is able to follow new products and evaluate later on the product page.

Jungle Scout

This is a software designed to aid buyers research Amazon niche products and the potential that it poses.

Seller App

The additional barcode scanner is an outstanding feature of this app. Sellers use this feature to scan items with their cell phones. This helps to preserve the record of scanned items.

Final Words

Fba is a perfect program to help you sustain a working online business while being passive at it. This article has discussed FBA extensively. We hope all your questions are satisfactorily handled.