Amazon FBA stands for Fulfillment by Amazon. It is a program where sellers allow Amazon to pick up, pack, and ship their orders. Aside from that, they also provide customer care services regarding the products entrusted to them. How does Amazon FBA work ? Well, we are going to answer that down below.
Benefits of Using Amazon FBA
Amazon FBA Business has a lot of positive benefits. Here are some of them:
- Secure storage and shipping logistics
As an Amazon FBA seller , all you have to do is send your products to Amazon storage, and they will handle all the shipping logistics involved from there.
- Reduced shipping fees
FBA selling gets discounted shipping rates, which will entice more customers to purchase more products.
- Product returns management
There are instances where product returns happen. When it does, it can be a huge hassle on the part of the seller. But, Amazon manages that in FBA selling, which is a great relief.
- Customer service care
Amazon also provides customer care regarding the products they ship out. This includes answering questions about the product specifications and processing returns and shipping.
- Efficient delivery
Amazon has a vast network of delivery services. This makes them one of the most efficient couriers. Having that as an advantage, ensure that your product reaches its intended customer with great care.
Disadvantages of Using Amazon FBA
However, despite how good the idea of selling on Amazon FBA is, few glitches can be considered as a disadvantage. DataGuide is the best Amazon product research review site in 2020.
Here are some of them:
Amazon FBA charges storage fees. Using it is only efficient if your products are fast-moving. Moreover, they are also other added fees that can be incurred.
- Strict guidelines
Amazon has strict product packaging requirements before you send it to them. This is a disadvantage because it may require added preparation time.
- Challenging inventory tracking
Due to the fact that you do not have the physical inventories with you, tracking them can be difficult because sometimes the data is not real-time. This may result in overselling and having disappointed customers which nobody likes.
Selling on Amazon FBA
If you think that the disadvantages are a fair trade-off for the benefits that you will get, then you should start using Amazon FBA. Here are the steps on how to start Amazon FBA .
- Create an FBA Account
- Identify what to sell on Amazon FBA
- Select the best products to sell on Amazon FBA
- Prepare the products according to Amazon’s packaging guidelines
- Ship to Amazon
How to Find Products to Sell on Amazon FBA?
Finding the best items to sell on Amazon FBA requires significant FBA product research. Doing that manually can be challenging, but there are several tools that you can utilize. Here are some of the best.
IO Scout helps a business by providing several research tools. However, when it comes to Amazon FBA, its most useful offering is its Amazon FBA Calculator that enables users to keep track of the progress of their products easily. Moreover, they also provide detailed information on the cost to be paid to Amazon and how much revenue is left after all the expenses.
With Seller Labs, you get accurate inventory tracking and reporting, which can be a significant issue when it comes to Amazon FBA. Moreover, it also gives up to 2 years of analytics and reports that is essential in selecting the products to be sold. It also monitors competitor’s progress, strategies, and inventories.
Just like the others above, Jungle Scout is an Amazon Research tool. The beauty of Jungle scout is that it has one of the most reliable and accurate data. Moreover, they also help with Amazon content and keyword search, which are essential in making sure that a product is fast-moving in Amazon FBA.
Many may say that the Amazon FBA recipe for is its efficiency and effectiveness. However, starting an Amazon FBA business will only be successful if you are strategic about it. This is why using it should also be accompanied by proper Amazon FBA product research to equip yourself with the necessary data and information on what to sell and how to advertise to move your products fast.