Amazon is one of the most amazing e-commerce platforms that you can use for your e-commerce website. It possesses awesome features that can totally give you convenience when it comes to selling and shipping your products for your customers. This e-commerce platform has just a lot to offer such that it is really inevitable that you consider using this instead of all the others.
In fact, one of the impressive features that you can have is the FBA, fulfilment by Amazon. You can totally make money with this feature especially when you know what this is and how this works. This is the perfect time that you should explore more on this and make profits. How is it possible to make money using fulfilment by Amazon? Remember, the more you learn, the more you earn.
What is FBA?
Fulfillment by Amazon is one of the many amazing features of Amazon that can help you earn for your e-commerce website. You can save a lot of time by letting Amazon help you and therefore let your business grow in no time.
You will only be able to avail FBA when you are a Prime member. This also means that you are entitled to the Amazon Prime Free two-day shipping on Amazon, Free Shipping, and of course, other benefits that can totally leave you in awe. When you make use of this feature, your product can reach up to the many countries and continents as Amazon has been a known online retailer and it has also established its branches in almost all around the world.
Customers’ trust is also going to come in handy with the FBA. You do not have to spend so much time with dealing the customer service and returns because the FBA already handles these. In fact, with FBA, you can be free of packing your products, delivery, and as already mentioned, customer service and returns.
FBA can let your business quickly too. How? FBA handles your products with care. You do not have to stress over the number of units that you need to send to the fulfilment centres. And, because of the awesome services that it offers, it can save your time and it helps you focus more on your business, be it in marketing or in the improvement of your e-commerce website.
This Amazon feature is also mindful of your business. It doesn’t let you spend too much on FBA such that you only need to pay as you go and you pay for the storage space that your products are having and for the orders that FBA fulfils. The cost of shipping is already included in the fees that are going to be presented to you. There is no extra charge to apply for the Amazon Prime Free two-day shipping and free shipping on eligible orders. Although, if you need more services, some additional fees must apply.
At the very basic level what you are doing with FBA is obtaining your product and shipping it to one of the Amazon Fulfillment Centers that is near your place. Then, you need to wait for it to be sold and that’s when you are going to be paid in every two weeks. And, that is without doing anything further. You just keep profits coming in.
But, of course, you would need to set up a seller account first. You can actually choose whether you want to use your own personal checking account or have a separate account instead for your Amazon transactions. In creating your seller account, you should think about it first. Are you going to send out less than 40 items? If so, you have the free account. Free account would also mean that you are going to have only a fewer number of categories for you to sell. Otherwise, if you are into bulk selling, then you need to go for the paid account and have as many categories for selling as you need.
You should then look for the FBA Policies and Requirements to know more about FBA and its restrictions. Offenses to regulations should not happen at any moment of your Amazon or FBA use.
Do not get discouraged though if you feel like your products are not selling. You will only have to wait for more time and you will then have your sales. When your product is already selling, Amazon can then give you the payment. And, since the products are selling already, you can have another set of products for FBA to earn more. In fact, you can actually send your products monthly.
Apparently, FBA is often compared with FBM or the fulfilment by merchant. With FBM, you as a seller does the storage and all of the necessary activities for order fulfilment. You will need to set up an Amazon account for our store, create your product listings, store your inventory in your warehouse, pack the customer’s orders, and ship. Late, missing, or damaged arrivals will be your responsibility.
How can you benefit from FBM?
With FBM you will be able to have a hands-on fulfilment. This would mean that you are in control of your inventory. This promotes your sense of ownership to your brand, especially that you also need to do the fulfilment yourself. If there is anyone who should have the profits for your products, then it would only be you.
If you want to save finances, this is a great way to go. Since it is you who is keeping the inventory and you are also the one responsible for the fulfilment of your products, you do not have to pay Amazon for these fees.
But of course, you FBM has also its disadvantages.
Since you need to do everything from your online store to packing and shipping your products, you should be prepared for more responsibility, and a heavier burden too. You will need to look out for your products, make the necessary improvements for your store and such in order to attract your customers and get your products sold.
You will still pay for the storage space of your products, fulfilment and shipment even if you do not avail of the FBA feature. The cost of these will depend on how you are going to strategize your online store to attract customers and earn money.
Of course, as an online seller who dwells on Amazon platform, you need to keep in mind that you do have a choice. You can opt for either FBA or FBM as this offer really great opportunities that you should not ignore. And, along with these benefits are the disadvantages that you need to consider as well. You can still earn money with any of these, but you need to be wise in order to have an effective strategy on how you can it.