Amazon has managed to put a good front within the competitive market and has been blooming consistently as a buying and selling platform for the last few years. With these last few years, Amazon has also been working on its policies regarding available options of selling or buying stuff online. The main reason for Amazon’s success is the flexibility and resource it provides to more than 2.3 million sellers worldwide.
The central selling prospect used by many sellers on the Amazon platform is known as the FBA, which stands for Fulfillment by Amazon. FBA deals with both selling and shipping of trade products for the initial point. However, you also have options to sell your product through the FBM option, which is known as the Fulfillment by the merchant. Both of these methods play a vital role in providing good services to the users. If you are new to this idea and want to gain information on Amazon FBA you can visit this website or you can also scroll down and read this guide as we will walk you through everything step by step.
Procedure regarding selling:
If you are one of those who are thinking of selling things on Amazon then go for it. As recorded from the past few years Amazon benefits the buyers due to heavy audience, amazon keyword research method, and greater availability all around the world. More than fifty-nine percent of businessmen and sellers start their initial income business from the Amazon platform. In addition to that, the most average profit a buyer gets is above sixty percent as well. But how to start selling on Amazon? Following is how you do it.
1. The first step is to know your marketplace, the marketplace is the region where you want to sell the products. Once you know the marketplace go ahead and choose it from the options provided by the site. Make sure to choose your marketplace to avoid complications. Choosing a US marketplace can also benefit you if you are from a smaller region and can’t sell stuff locally.
2. The second step is to choose a business model, you would see a lot of options from the site itself as it is divided according to the budget of the seller. You can choose from the most renowned business models such as ‘private label model’, ‘Wholesale’, ‘Arbitrage’, ‘Reselling’ and lastly ‘Handmade’. All you need to do is choose from all of the above-mentioned options by focusing on your investment and things that you are planning to sell.
3. The third step is to choose your method of fulfillment, which includes both FBA as well as the FBM. In FBA you as a seller would directly ship the products from the official amazon storage with the two days pre-shipping facilities however, with the FBM you will be doing the storing and managing of your product and will only use Amazon for trading purpose. Make sure to choose wisely as the statistics explain that about fifty-seven percent of sellers go for FBA while thirty-four percent of sellers opt for combined service of both FBA and FBM. On the other hand, the usage of FBM is about forty-three percent only.
4. Lastly, create your account and start listing your products in a variety of categories.
Read More: From Amazon to Outer Space: The Never-Ending Business Expansion of Jeff Bezos
Advantages and Disadvantages of Amazon FBA:
As with every trading method, FBA also has its advantages and disadvantages to look out for. If you are a person wanting to use the FBA option, here are some of them:
Advantages of Amazon FBA
• FBA sellers don’t have to spend much time on their amazon business account as compare to FBM users.
• FBA helps to survive within the competition as the FBA sellers have more control over the sales.
• FBA method is very cost-efficient especially for the newcomers in the selling business as fees and overall expenditure is less than FBM.
• FBA provides ease of service since all the selling and managing services are provided by Amazon itself. Even the feedbacks are handled by Amazon and you get the perfect insights on the business as well.
Disadvantages of Amazon FBA
• FBA sellers gain fewer revenues on the selling products when compared to the FBM method. According to the records FBM sellers earn about twenty-five thousand dollars more than FBA sellers.
• FBA sellers can not start cheap as needing a lot of money for an initial investment as compared to FBM sellers.
• FBA tends to catch business slowly hence you need to be patient to make a name and sell online which FBM user can grow their business at a more fast pace.
• FBA sellers don’t have any backup plan as to when the reloading of products starts the business will be slow due to management and listing of new products and you wouldn’t be able to take new orders.
Shipping procedure for Amazon FBA
The listing is straightforward when it comes to the FBA method. The listing is fully managed through amazon and lists are uploaded to the seller to check and seek revenue from them. When it comes to shipping procedures of FBA following is how you shop your products.
1. The process is initiated with a notification by Amazon that you need to ship a certain product to the buyer, as a seller you are required to operate with 24 hours.
2. Call your local delivery service.
3. Since you are an FBA seller you have the option of Prime shipping. This is the biggest leverage Amazon has given to the buyers. So if you are a buyer you can easily order and get your products in just two-three days. This not only benefits the buyer but also the sellers as it creates goodwill of service within the business.
4. Lastly, as a seller make sure that you have a full set of tools needed for the shipping process to assure quality service and safety of products. Supplies like boxes, tapes, and bubble wraps are a must.
50,321 total views, 28 views today