Key Points:
- Fulfillment by Amazon (FBA), a popular fulfillment and shipping option many eCommerce merchants use
- FBA is one of the two major fulfillment options available to sellers on Amazon
- Depending on the size and weight of your products, your Amazon FBA fees can be as low as $2.41 and as high as $137.10
Understanding how to sell on Amazon FBA is the key to making the most of Fulfillment by Amazon (FBA), a popular fulfillment and shipping option many eCommerce merchants use. Utilizing Amazon FBA is a great way to not only make your fulfillment operations more efficient but also tap into Amazon’s massive global marketplace.
Here’s a closer look at what Amazon FBA is, its benefits, how to sell on it, and more!
Table of Contents
What is Amazon FBA?
Fulfillment by Amazon (FBA) is one of the two major fulfillment options available to sellers on Amazon. With this particular option, Amazon takes on the responsibility of storing, packaging and shipping your products directly to your customers in exchange for fees paid by online merchants.
Unlike the other fulfillment options where the responsibility of packing and shipping customers' orders falls on your shoulders, Fulfillment by Amazon, essentially, allows you to sell products while they ship them.
Amazon FBA Fees
Selling on Amazon FBA comes with its own related costs or expenses. In order to get the true cost of using this fulfillment and shipping option, a lot of factors should be put into perspective, including product size and weight.
For example, there are standard products that are classified as those that weigh a few pounds and there are oversize products. Depending on the size and weight of your products, your Amazon FBA fees can be as low as $2.41 and as high as $137.1. Products that weigh two lbs. and above incur fees between $2.41 and $4.71 at $0.38 per pound while packages weighing above 70 lbs. incur shipping fees of $0.79 and $0.91 per pound.
Amazon FBA Benefits
Selling on Amazon FBA certainly offers plenty of benefits, too! Here’s a quick look at just a few of them.
1. Less Stress with Fulfillment
If you’re among the online merchants that personally fulfill their customers’ orders, you already know how energy, resource, and time-consuming it can be. With Amazon FBA, you’re able to outsource the entire process, saving you a lot of time and money!
2. Effective Management of Returns
It’s never easy to process returns. However, with FBA, you don’t have to worry about taking care of returns. From customer inquiries to return shipping labels and every other aspect of reverse logistics, Amazon takes care of it!
3. Affordable Shipping Rates
This is one of the top benefits of selling on Amazon FBA. Being that Amazon uses major global couriers, they’re able to obtain significant shipping discounts. These discounts are then passed on to sellers who use the platform. There are also free shipping offers to Prime subscribers.
4. Reliable Customer Service
Amazon goes the extra mile to offer users of its platform top-notch customer service. Their 24/7 customer support cuts across online chat, phone calls, and email. Whatever queries your customers might have been subsequently taken care of by Amazon.
5. Unlimited Storage Space
This is another benefit of being an Amazon FBA seller. With this fulfillment option, you don’t need to stress out about finding warehouse storage space or spending money paying for the warehouse. Whether you sell multiple products or just one, Amazon’s massive warehouses make storage easy and fairly affordable.
6. Quick Delivery
With Amazon maintaining hundreds of fulfillment centers globally, your customers can have their orders delivered right within a matter of days. The company’s vast reach makes it simple to reach customers on a truly global level!
How Do I Start an Amazon FBA Business?
Starting an Amazon FBA business requires taking a number of steps to ensure a smooth launch of your company. Here’s a quick look at how to do it!
- Choose a viable product or business idea
- Coordinate with manufacturers or wholesalers
- Start manufacturing or ordering from wholesalers, or source existing products elsewhere to sell on Amazon FBA
- Open a seller account with Amazon and join FBA
- Create listings on Amazon
- Start marketing your products to your target audience
How to Sell on Amazon FBA
Apart from understanding how to start your business on Amazon’s FBA, you need to know how to sell on Amazon FBA. Here are some steps to help you get started, being that you’ve already sourced your products from manufacturers or wholesalers.
- Add products to your account by going to Seller Central, selecting Inventory, and, from the drop-down menu, selecting the “Add a Product” option.
- The next thing is to list your product on Amazon. Select the “Create a New Product Listing” and start listing products.
- Choose the product categories you want to sell. Ensure that you go for a category without restricted products.
- Fill in the required information. This includes the title of your listing, manufacturer of the product, brand, price, product ID, UPC code and the like.
- Buy a UPC Code if you don’t have one already. Simply go to SnapUPC to buy them.
- Take pictures of the UPC shopping cart and the UPC order confirmation.
- Open the UPC JPEG picture and write down the number. Go to “Product ID” and enter the number.
- Finally, click “Save and Finish” and you’ve successfully created your first Amazon listing!
Boost Your Business with Amazon FBA
With an Amazon FBA account, you’ll be able to finally get your products in front of over 300 million customers on Amazon! You can also leverage the exceptional storage and customer service capabilities of the world’s largest fulfilment network to get it all done affordably and efficiently.
Easyship seamlessly integrates with Amazon to make selling on Amazon FBA even better. Sign up today to not only start selling on Amazon FBA, but take advantage of our pre-negotiated, discounted rates from couriers around the world!
