Amazon is the leading online market space which provides the best customer services. But Amazon is not just about customers. With its FBA program, Amazon has also created an amazing online business platform that has gained immense popularity over the years. As a result, more than 2 million people are earning online by registering themselves on FBA.
What Is FBA:
FBA stands for Fulfillment By amazon. Enrolling for the program opens up unlimited hasslefree business opportunities for you where amazon takes care of most of your business services. All you need to take care of is the quality and the promotion of your product. And at very reasonable fees, you not only get to reach unlimited customers but also get Amazon’s best world class services for 24/7.
How FBA Works:
Amazon is known as the king of online sales and for all the good reasons. For Amazon, customer is the king and customer satisfaction is its top priority.
About half of all the sales comes from third party sellers who opt to sell their products on Amazon by opting for FBA.
Amazon keep everything hasslefree for not only the customer but also for the seller and takes care of most of the pains like shipping, storage, returns and refunds. FBA has a very organized, step by step working style. It involves
Seller sends the product to Amazon
Amazon stores the product in its warehouse
It takes orders from the customers
Picks the product, packs it, ships it, tracks it and ensures delivery of the order at his address
That's not all! Amazon also handles refunds and returns
Amazon has a loyal customer base of more than 300 million customers. A regular customer spends $700 on an average a year while the prime customer gives an annual business of $1,300. The FBA program has been specially designed to provide variety, quality and brand value to these prime customers. Amazon has 90 million prime members in the US.
This means that being on Amazon FBA makes you more visible to Prime buyers, and increases your chances of making more money.
Responsibilities Of FBA User:
Choose your products wisely As a seller you should give a deep thought to the product you want to sell so that it doesn't sit for too long in the Amazon warehouse. Amazon let’s you to sell anything and everything because it earns from you.
Create some buzz about your product and advertise it well. No one will buy your product if they don’t know about it.
Keep your stocks ready so that you can meet the demands as soon as you get an order
Benefits Of FBA:
No Pains Of Logistics And Shipping:
The most time consuming and painful part of order fulfillment is logistics and shipping. Being on FBA saves your time and energy. Amazon ensures smooth logistics and shipping at a very reasonable fees.
Best Shipping Rates:
Being the largest online ecom portal, Amazon deals with the best shipping companies at a very reasonable price. It provides free home delivery services to its prime members to ensure customer satisfaction.
Handling The Returns:
Amazon keeps everything smooth for its customers. From placing an order to returning it, the customer hardly has to face any hassle. They will charge you for the returns but this is justified.
Quick Delivery :
With hundreds of fulfillment centers around the world, Amazon ensures quick delivery to the customer once they get the order confirmation.
Excellent customer Service and Unlimited Storage Space:
Amazon’s excellent 24/7 customer service and support system makes it a hot favorite online shopping space of customers. This takes off weight off your shoulders.Whereas, the unlimited storage space saves you lots of money.
But just like everything else, selling on Amazon through FBA also has its own cons like :
FBA is not free, Amazon charges good but justified money for every service that you will avail
If your product sales are better then FBA is the best program for you, but if your product stays for too long in the storage house then the storage fees itself can burn a hole in your pocket.
The bitter part of selling on Amazon is the returns. Chances are high that you will receive too many of them.
Amazon is very particular about how you prepare and ship your product to its warehouse
You have to keep a regular track of your inventory, this can be very time consuming
Sales tax differ from country to country. In the US only every state has its own sales tax system. This means that you will have to deal with too many technicalities.
Amazon FBA is a great program for sellers. Apart from its strict guidelines and the service fees, FBA provides you everything that you can think of.