Fulfilment by Amazon is confidently cornering the Amazon marketplace, since it is one of the most popular ways for succeeding on this platform. That’s because by choosing FBA, you are provided with a chain of benefits that FBM sellers do not have. For example, you can automate the entire process of your shipping, since Amazon takes care of it by implementing its advanced shipping mechanisms. Additionally, you can gain the attention of more Amazon customers who are Amazon Prime’s active users.
For good reason, nearly 67% of Amazon sellers are FBA users who have bene successfully operating on Amazon for many years. So, if you want to become a part of this empire, but still have several hesitations, make yourself comfortable, since we are going to excurse you through every hidden corner of FBA and Amazon in general. After you are done with this blog, you will no longer have seconds thoughts about investing in an ecommerce business on Amazon!
What is Amazon FBA?
Fulfilment by Amazon (FBA) is an option designed by Amazon to simplify the process of operation for many sellers, and provide Amazon customers with high-quality service. Let’s try to understand how it works:
- You send goods to an Amazon warehouse
- Amazon takes the full responsibility for your products’ storage
- If your customer orders your product, Amazon picks, pack and ships the order directly to whoever ordered it
- If your customer decides to return the order, Amazon also handles the entire return and refund process
However, there is no such thing as free lunch! And if you want to take these benefits, you have to pay Amazon both for storage and fulfilment. These are non-negotiable fees, and they do not add up too much unless your products are too heavy or do not sell well, thus taking too much space in Amazon’s warehouses for too long.
Why Should You Choose FBA?
Look, currently Amazon has more than 300 million active users, 90 million of which are Prime subscribers who spend incomparably much more money on Amazon. While the average customer spends nearly $700 per year, Prime members spend more than $1400. So, if you are an FBA seller, the possibility of being visible to Prime Members is too high, which means you can turn a good profit from it.
How Does FBA Work?
As we have mentioned, Amazon takes care of all the hard work for FBA sellers, all you need to do is just to follow this simple structure:
Send Your Goods to Amazon
Only in the United States, Amazon has more than 100 warehouses. You should tell them what kind of products you are going to send them, and Amazon directs which warehouse is the best for your products’ storage.
Amazon Sorts and Stores Your Goods.
After receiving your products, Amazon launches the process of your product’s sorting and adds them to their inventory. You can be sure that your product is being stored safely and in a perfect condition. In case if you find your product damaged in an Amazon warehouse, Amazon will reimburse you immediately.
The Process of Transaction
Another benefit of Amazon FBA is that it will take care of the transaction process by accepting payment and updating your inventory accordingly! Once less headache to worry about!
The process of shipping is also managed in a very professional way. Once you receive the order from your customer, Amazon takes your product from the warehouse, packs it, and ships it directly to your customer. Even though the product arrives in an Amazon box, your information will be visible there and your customer will be happy knowing that you took full care of them!
What About Customer Service?
You’re covered here as well! Amazon also handles customer service. Yep! A one-man army of ecommerce! Once your customer receives the order, Amazon immediately contacts them to make sure whether they are satisfied with the order or not. If your customer decides to return the item, guess what? That’s right, Amazon will also handle the process of return and refund.
The Process of Payment
By working with Amazon FBA, you can be sure that you will get paid every two weeks after Amazon counts your sales, deducts fees, and transfers your profit into your bank account.
There are no doubts that the advantages provided by Amazon FBA are insanely good, since you take out of tons of options that you as a seller have to implement during your operation. Keep reading our blogs, and don’t miss the second part of this one, where we are going to talk about several tactics which will help you succeed in your FBA business.