What is Amazon FBA? & How to Leverage it?
What is fulfilled by Amazon (FBA)?
It’s a service where Amazon takes care of all of your warehousing and inventory needs at their fulfillment centers across the UK. They will pick, pack and send orders to your customers as they come in. They’ll even handle returns and some of your customer service and, any business can take advantage of this service, no matter how small! There are over 2 million people selling on Amazon Worldwide and 66% of them utilize FBA!
Here are some simple steps outlining how FBA works:
1. Send in your products to an Amazon fulfilment centre
2. Amazon store your products in there warehouse
3. Once a customer orders one of your products, Amazon will pick it, pack it and ship it for you.
4. They also handle all refunds, returns and have 24/7 customer service!
5. You Get Paid (Every 2 weeks or as often as daily if you wish!)
Why is FBA Beneficial when Reselling on Amazon?
· Logistics & Shipping – This part of reselling can be incredibly time-consuming and higher amounts of sales will only mean more time packaging or having to get extra help which can lead to additional costs. FBA allows you to outsource this entire process!
· Competitive Shipping Rates – Amazon have incredible buying power and this translates to large discounts on shipping rates, which they will allow you to take advantage of!
· Managed Returns – Returns can also be a pain in the reselling ecosystem, that’s why Amazon will help out with; customer enquiries return labels and reverse logistics, just remember they do charge a return fee!
· Unlimited Storage – Amazon has no minimum inventories and also doesn’t charge for warehouse space you only pay for what you use! Plus if you’re a high-performing seller you get unlimited storage!
· Fast Delivery Times – Amazon has a multitude of fulfilment centres across the country to ensure a fast and seamless delivery service, plus customers with an Amazon PRIME subscription will receive next day delivery which can increase engagement and lead to more sales!
What do you need to keep an eye out?
· FBA Costs – You need to take into account FBA costs; storage fees & fulfilment fees.
· Long Term Storage Fee’s – Storage fees are reasonable on Amazon, however, if items don’t sell for 6 months fees can add up. Always be sure to not let your inventory not sit for too long. Amazon is in the business of selling products, not storing them!
· Increased Returns – As the returns process is so easy this can lead to a higher return rate, this is something you need to be aware of!
· Preparation can be Difficult – Amazon has very strict guidelines when it comes to preparation therefore it’s essential that they are all followed closely! Don’t worry our team of Amazon experts will give you all the advice you need to ensure you don’t make any mistakes.
How can you Successfully Sell on Amazon with FBA?
· Product Selection – It’s all in the product! In order to be successful on Amazon, you need to select the right products, thankful Resell Concierge has a wealth of products recommended in various categories, which are constantly updated to keep you selling the most in-demand and trending products!
· Sell Smart – Low ranked products will always sell fast but there will be competition to account for. High-ranking products will have less competition but slower sales which can lead to longer storage fees!
· Don’t Rush – When getting started with Amazon FBA it’s important to not rush into selling hundreds of products, we recommend first learning the ropes, get organized, and scale up over time with the support of our expert team.
Amazon’s FBA program is an easy way for any business regardless of its size, to start selling its products to millions and millions of customers plus it allows them to utilize the largest fulfillment center in the world. You will also have access to Amazon’s first-class customer services, storage capabilities and be able to increase customer trust levels compared to other platforms.
Finally, FBA takes a lot of the legwork from resellers, eliminates the need for storage space, and handles time-consuming tasks like packing up orders, FBA isn’t without its disadvantages but rest assured our expert team is on hand to provide you with best-in-class support to get you started and selling on Amazon!