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.

Introduction to Amazon Fulfilled by Amazon Program

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?

Firstly, the abbreviation FBA stands for "Fulfillment by Amazon" which is an Amazon service that carries out your orders for you. By enrolling in the FBA program, you let Amazon pick, pack, and ship your orders.

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.

  1. Unparalleled Shipping Options

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.

  1. Access to World-Leading Customer Support

Your customers get access to Amazon's trusted customer service and return management. It's a hassle-free process for both consumers and yourself.

  1. Capital-Light Scalability

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.

  1. Multi-channel fulfillment

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.

  1. Cost-effective Solution

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.

  1. Sell Globally

If you're US-based, let international customers visiting 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.

  1. Set up FBA

If you already have a Selling on Amazon account, Add FBA to your account on Seller Central. If you don't have a Selling on Amazon account, you can create one easily.

  1. Create your product listings

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.

  1. Prepare your products

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.

  1. Ship your products to Amazon

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.

  1. Sit and Relax

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 still in the processing of doing your product research around which product to sell and are still looking for suppliers, you can read our guide on running product research and market analysis on Amazon with DataHawk. We provide you with the necessary tips, recommendations, and tools to run this process as efficiently as possible, notably by leveraging DataHawk's Amazon seller app.

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.

DataHawk is an Amazon analytics and optimization software that provides tools for brands, retailers, and agencies to help increase sales, optimize margins, boost productivity, and gain insights on the Amazon marketplace. This is a blog post where we share a basic introduction of the Amazon FBA program and where we outline how it can be leveraged notably through using DataHawk. Our software comes with a free plan and advanced paid plans for sellers, vendors, and agencies of all sizes.

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