In this article I will discuss what FBA on Amazon is and why if you are in the business of selling than Amazon is a must.
First of all, the Amazon marketplace did over $200 billion in sales last year.
And about 41% of ALL online sales in the United States for 2018 are projected to be done via Amazon. That is huge.
But exposure to a massive amount of potential buyers is not the only reason I recommend them.
Fulfillment By Amazon
Ok. So many people may not be aware of this but Amazon actually runs its own fulfillment service for sellers. This is called FBA. What this does is that Amazon will actually store and ship your products for you. You also get all the same benefits and perks that Amazon offers like free shipping and 1 day delivery.
No need to have your own warehouse or to worry about packing and shipping every item every time. If you have ever done online sales having someone else do this is a huge time saver. On top of that Amazon also takes care of returns and customer service for your items. You just ship your inventory to Amazon.
Sounds easy huh?
Fees For FBA
Much like any other service there is a cost to both listing items and to store items. So we will break down those costs. The prices can be broken down into two costs: the fulfillment fees, which you pay when an item sells, and the monthly costs.
Normally you’d think Amazon would only fulfill for items sold on its platform right? Well no. You can also use Amazon to store and ship your items anywhere even if the sale occurred on another platform like eBay or your own personal store.
The fulfillment fees for multi-channel are a little bit higher but worth using if you are storing your products with Amazon and plan to also sell on other channels.
And Finally Listing on Amazon
This was one is a no-brainer and concludes where we started. Amazon is the largest ecommerce site in the world and continues to grow. People will find your products which saves you the hassle of spending on additional marketing just to get a sale. And when you think of it.. you probably would have spent more on advertising than you will on the fees Amazon charges. Just be aware that there are a few big name brands that you are not allowed to sell if you are a reseller.
So today I just wanted to write an introductory article on ‘Why Amazon’ and what FBA means. For more check out: How To Make Money On Amazon.
Any questions or comments leave them below.