Introduction to Amazon Fulfilled by Amazon Program
This article is an introduction to the Amazon FBA program and a summary of the benefits of the program and how to get started using it. Detailed in-depth articles relating to each subsection are to be published over time.
Are you new to selling on Amazon or have been contemplating launching a business by selling on the Amazon marketplace via the Fulfillment by Amazon program, or FBA? Whether you’re a four-hours-workweek diehard fan seeking a passive-income type of business, you’re having a job and trying to launch a side project, or you’re looking to fully jump in with both feet to build a serious eCommerce business, we’re here to help.
In this article, we will be covering the basics of Amazon FBA in an effort for you to gain the necessary fundamental knowledge around this program and business and put it into play. If you need help understanding the supply chain challenges facing eCommerce sellers in 2022, check out this article.
What is Amazon FBA?
Amazon has invested a gigantic amount of money to build one of the most advanced fulfillment networks in the world, and your business can benefit from their expertise and logistics. This, combined with the massive customer base that is unlocked to you in Amazon’s marketplace, allows you to scale your business, reach more customers on Amazon, and fulfill your orders that stem from off-Amazon channels such as your eCommerce site -like a Shopify store-, your eBay, or your Etsy store.
With Amazon FBA, you store your products in Amazon’s fulfillment centers, and they pick, pack, ship, and provide customer service for these products. No matter how hectic your store becomes, Amazon completely takes care of the whole process. Some additional Amazon shipping programs include Amazon Seller Fulfilled Prime and Amazon FBM.
What are the benefits of using Amazon FBA?
By enrolling in the Amazon FBA program, your business and customers will access many benefits.
- Unparalleled Shipping Options
- Access to World-Leading Customer Support
- Capital-Light Scalability
- Multi-channel fulfillment
- Cost-effective Solution
- Sell Globally
You will be able to offer more compelling shipping options to your customers as your products are eligible for Amazon Prime Free Two-Day Shipping and Free Shipping. Your shipping costs are also likely to be much lower than what you would get by going directly through carriers.
Your customers get access to Amazon’s trusted customer service and return management. It’s a hassle-free process for both consumers and yourself.
Amazon FBA services scale with your business, and there are no minimums to using it. This allows you to launch, grow, and run your business without intensive capital investments. Instead of focusing on your logistics, you will be able to dedicate more time to what’s essential: your products and brand.
You can leverage the multi-channel fulfillment capabilities of the FBA program to fulfill orders from your other sales channels such as your eCommerce store like a Shopify store, your eBay, or your Etsy store.
It’s a pay-as-you-go cost-effective and simple pricing model based on your sales and storage. Your product features such as its weight and dimensions will directly affect the price you pay. You can leverage Amazon’s FBA fees calculator to estimate a products’ fees, or you can access FBA fees and referral commissions across thousands of products using DataHawk.
If you’re US-based, let international customers visiting Amazon.com search, browse, and find your export-eligible products through the Amazon Global Selling program, while you’ll be able to easily sell in Canada and Mexico. If you’re Europe-based, leverage the Pan-European program to sell your products across Amazon’s European marketplaces including the United Kingdom, Germany, France, Italy, and Spain.
How to get started with FBA?
Assuming you’ve already done Amazon Product Research, and know what products you want to sell, that brings us here: How to get
started with FBA? There are 4 steps involved: setting up FBA, creating your product listings, preparing your products,
shipping them to your assigned Amazon FBA warehouse.
- Set up FBA
- Create your product listings
- Prepare your products
- Ship your products to Amazon
- Sit and Relax
Add your products to the Amazon catalog one at a time, either manually, in bulk through an Excel import using
Amazon’s-provided templates, or by integrating your inventory-management software with Amazon’s API.
Prepare your products for e-commerce shipping by ensuring they can be safely and securely transported to the doorsteps
of your customers. Amazon provides preparation and shipping supplies you could use.
Create your shipping plans, and ship and track your shipments to Amazon fulfillment centers. Amazon’s online seller
tools can help you through the process.
Just kidding, of course. While this entire fulfillment management process is a magic breeze, it’s just the easy part.
You’ll now need to work hard to get your products to sell. You may also want to read up on the Amazon FBA
reimbursement process, in case Amazon loses a shipment.
Looking for a product to sell on Amazon?
If you’re already selling some products but are struggling to rank better, check out our guide on tracking product keywords positions on Amazon with DataHawk’s Amazon keyword tracker.