Amazon FBA: What is it?

It would not be wrong to say that we are living in the age of Amazon . Amazon. In 1994 Amazn.com was an online book store but today Amazon is a titan of e-commerce with US$386.064 billion (2020) revenue. Today in this article I will show you how you can become a part of this $386 Billion opportunity. Yes, it is true you can sell products on Amazon as millions of other sellers are doing all around the world. When it comes to selling on amazon we listen to two words very frequently that are Amazon FBA. Today in this article I will explain each detail of Amazon FBA, What does it mean! How it works! What are the benefits of Using Amazon FBA or all other details you may need to know before becoming a part of the world largest market place : Amazon.

What is Amazon FBA?

Let’s see what Amazon says about FBA “Let Amazon pick, store, pack, and ship your orders”. These services store, pick, pack, and ship provided by Amazon to its sellers are called Fulfillment by Amazon (FBA). The purpose of the FBA service is to provide relief to the Amazon sellers by taking their extra burden off and let them focus on the selling practices. 

 

FBA Services allows sellers to store their products to an Amazon fulfillment center, When Amazon receives an order against their products it is amazon’s headache to pack, ship, and collect the bill. 

Benefits of Fulfilment By Amazon (FBA) Services

FBA services are the biggest opportunity for the sellers and they can take advantage of all of the resources and benefits associated with Amazon read below to know in detail about these benefits.

Having an Amazon association stamp on the products.

Having the name of amazon associated with the products is the quality guarantee that most of the buyers appreciate, making them feel secure and more confident when they buy. 

Amazon’s 24/7 Customers Services Management 

Subscription of FBA services means sellers are free from answering the queries of the customers, returns collection, refunds amazon will do this all for you. Customer management service is free except for the Returns Processing Fee. 

Reduced Shipping Fees

Amazon is a giant e-commerce business and ships millions of products monthly. These huge shipments make it a special client for shipment companies and they offer discounts for amazon FBA sellers. Using FBA services means sellers will pay less in shipping than if the items were being shipped from an individual’s account.

FBA Fees Details

Amazon charges for its FBA services, these fees vary according to the subscribed package of FBA.

Here are the 4 types of FBA Fees that Amazon charges.

  • Standard Seller Fees

It ranges from 15-18% of the total price of the product that amazon charges for its FBA services

  • Fulfillment Fees

These fees vary from product to product depending on the size, packing, and shipping.

  • Storage and Inventory Fees

Amazon charges a storage fee per cubic foot of inventory. 

How to subscribe to Amazon FBA Sevices

It is very simple to use the FBA service by just following the below steps.

  • Create Seller Account
  • Set Up FBA
  • Choose the shipment Plan
  • Transport the Products to Amazon

Don’t Stop Here

More To Explore

How to deliver your products to Amazon?

Amazon is the world’s biggest opportunity to sell products and services. Selling on Amazon involves few steps such as registering a seller account, finding winning