• Abigail Shapland

What Is Amazon FBA?

Amazon FBA has become one of the most popular ways to earn income online with over 2 million people selling on Amazon worldwide! Over 60% of top-rated sellers use the Amazon FBA process to manage their business with its’ advanced shipping and fulfilment services.

So What Is FBA?

FBA stands for Fulfilled By Amazon.

When you sell anything on Amazon, there are a few steps that have to be taken to ensure your orders are shipped out smoothy, on time and the financial and logistical elements are properly taken care of.

When you choose the FBA route, you are paying Amazon to do the work for you. They charge both a storage and fulfilment fee which also include use of their customer service department, cost of shipping and access to one of the largest and most sophisticated fulfilment networks available.

What Are The Benefits?

FBA is known for being a simplified logistical and shipping option for brands who may not have the time to manage their own fulfilment process. FBA allows you to outsource the entire process, from shipping to returns, giving you more time to focus on your marketing strategy.

Secondly, not only do you save time, but you can also save money through taking advantage of Amazon’s reduced shipping costs when sending products into Amazon-owned warehouses.

The ability to use their excellent customer service team is a huge win for brands looking to save time but feel confident in knowing that any customer queries will be handled in a professional and timely manner.

In addition to these benefits, sellers can also benefit from speedy delivery times and vast storage space within the warehouses, if you require it.

How Does It Work?

1. You send your products to Amazon Amazon has over 40 fulfilment centres in the EU, 17 of them being in the UK and over 100 in the US. Wherever you are, there is bound to be an Amazon warehouse close by. Just tell them what products you are sending, how much and the retail team will tell you where they need to go to.

2. They store your products within their warehouses Once your products have been received at the chosen warehouse, Amazon will sort and unpack your inventory which is stored safely within the warehouse. If anything is damaged, you get a refund.

3. When a customer orders one of your products off Amazon, the Amazon Retail team picks, packs, ships and tracks the order for you. The whole process is managed by the Amazon team from accepting payment to updating your inventory levels.

4. If there are any returns or refunds, Amazon also take care of those. Customer service is also handled by the Amazon team; from follow up emails, returns and even customer queries.

5. You receive payment Every couple of weeks, Amazon will deposit your profits directly into your bank account.

What Do I Need To Do?

There are a few things that you need to be in control of when you choose the Amazon FBA route.

You are ultimately responsible for choosing which products to sell. You can sell anything you like on Amazon but if you want your stock to move quickly and be profitable, knowing which products to market is key. If you fail to shift your stock regularly, you could face increasing storage fees from your warehouse space.

Secondly, keeping products in stock is one of the key factors in ensuring your Amazon business is successful. You will need to check-in regularly with your inventory levels and increase where necessary. Once you go out of stock you could face penalties from Amazon and sacrifice sales.

Lastly, how you market and advertise your products is completely down to you. You have a variety of tools available to you on the Amazon platform such as keyword-based campaigns and even programmatic capabilities. This is key in making sure your customers can find your products and really stand out amongst your competitors.

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