If you take interest in the eCommerce business, you might have noticed, in the last 6-7 months after Covid-19 took the world by storm, a lot of businesses have lost tremendously, if not gone bankrupt.
However, Amazon is one such company, which not only managed to continue to do business but has also become the world’s biggest company. The sales in the last 6-7 months have skyrocketed. Amazon’s owner Jeff Bezos even has become the world’s biggest contributor to the Covid-19 response fund. Thanks to the Amazon’s growth, every Tom, Dick, and Harry can benefit from Amazon’s Business.
In fact, Amazon has a business model that allows anyone to do business on Amazon. This business is called Fulfilled By Amazon or FBA in short. Fulfilled By Amazon is one of the best models of online business that can be done with little investment. This business model takes away the pain of marketing and branding. You will be selling from Amazon store and under Amazon brand.
Making Money on Amazon
If you don’t know about FBA, you might be really confused about how you can do business with Amazon. You might be looking forward to doing online business but do not have enough funds to launch it. If you do not have enough funds for marketing and promotion, you can use Amazon’s selling platform.
In this article, we are trying to explain what FBA is and how you can do FBA business. First of all, let’s look into the Amazon business model, Amazon distribution network, and Amazon’s customer base.
Amazon Affiliate Marketing
One of the easiest ways to make money on Amazon is by doing affiliate marketing. Amazon pays a commission to the people who refer buyers to the Amazon store.
To get started with Amazon affiliate marketing, you will need to sign up for their affiliate program. Once approved, you can then place their affiliate links on your website.
When people visit your website and click on an affiliate link, you will get credit for any sales they make. The more people you can get to your website and clicking your affiliate links, the more money you can make.
Getting Started with FBA
However, here we are trying to understand what FBA is and how FBA works. In the FBA model, you will send your goods to the Amazon warehouse. You will also let Amazon include your item in its inventory.
Since Amazon has your product, it will provide the fulfillment of everything including packing, shipping, return, replacement, and even refunds. This business model eliminates the hassles related to packaging, shipping, and even customer service.
FBA is for business owners of all sizes, especially those who do not want to sell themselves. Fulfilled By Amazon business means that you will have the ability to act as a big firm. But, you do not have to encounter headaches involved with being big entrepreneurs.
This business model allows you to focus on product developments, product manufacturing, and product procurement. Amazon takes care of the rest of the logistics. When you are doing online business, it is crucial that you identify shipping logistics of your products. It can be difficult to get them to customers in a timely and fast manner if you are selling yourself.
However, with FBA being around, Prime members will have their products shipped to the buyers’ doors very quickly. The other common challenge in an eCommerce store is making an inventory. Listing extra products for sale may make your business additionally complex.
When you have FBA, the only thing that you will do is shipping the product to the Amazon warehouse. From there, the firm will handle the rest for you. It will be quite easy to add your products without the need of adding more workload.
Fulfilled By Amazon (FBA) Business
Now that you know what exactly is FBA, the next thing you should know is how to use Amazon FBA. Before getting started with FBA, make sure that the goods you want to sell will make money for you.
Since Amazon charges FBA fees for storage and product handling, make sure that they will not affect your profit margin. These fees, however, may differ according to size, weight, and type of products.
After you decide on FBA business, the first thing you need to do is to create an Amazon seller account. Then, you will want to list your products. The next thing to do is to send your products to the Amazon warehouse. You may choose to label the products by yourself or give Amazon a small fee to do it for you.
After finishing with labeling, you will have to send them to the FBA centers. You may also choose to send them to Amazon to utilize the fulfillment placement service of the company for product distribution. The choice you make depends on the inventory you have.
Packing and Shipping
The first option is perfect for small inventory, while the second one suits to the large enterprises. With FBA, Amazon will handle all aspects from packaging, processing, to shipping of the products to fulfill the needs of the customer.
Fulfillment by Amazon or FBA is an online business model great for indie sellers, companies, and third-party vendors. They send their products to the Amazon warehouse and use Amazon distribution network and customer base to sell products.
When the product is purchased, Amazon packs and ships the product. Amazon fulfills everything related to the product that includes shipping, return, replacement, and refund. In case the buyer is not satisfied, you can easily manage the process through Fulfilled By Amazon. FBA makes sure that Amazon is offering products from different vendors alongside its products.
FBA provides small as well as big vendors access to the web-to-warehouse picking and arranging system. It also gives access to amazon pay per click advertising and other logistics, giving you more time to focus on other business aspects. Use the Amazon FBA calculator to know how much it will cost you for shipping and whole day customer service.
Benefits of a FBA Business
Listings of FBA are displayed with the FBA logo. This lets the customers to know that delivery, packaging, returns, and customer service is provided by Amazon. Your listings of FBA on Amazon are sorted by the price of the product minus shipping cost. You are entitled to free shipping.
The orders from FBA channels will fulfill your orders by use of inventory stored at the center of Amazon fulfillment. You will manage your inventory via a simplified user interface and will have the ability to redirect people to return at any moment.
Additionally, customers will also benefit from the growing assortment of benefits like the up to minute countdown for single-day shipping and gift wrapping.
