Amazon FBA Guide
If you are immersed in the competitive and fast-paced world of eCommerce, then you may find Amazon FBA is definitely something that gets your attention. With this Amazon FBA guide, we'll identify how it can help you to better manage your online retail business. This option allows Amazon to take care of some of those logistics on your behalf and free up some of your time.
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7 Steps to Set Up FBA Successfully
What is FBA?
Fulfillment by Amazon, otherwise known as FBA, is a service that Amazon provides to its sellers. The seller sends their inventory to Amazon for storage and distribution. This means when a customer places an order, Amazon will take care of that order, including the packaging and shipping.
How Does It Work?
Under FBA guidelines, you need to ship your products to Amazon after setting up a shipping plan in your Seller Central dashboard. Once the products reach Amazon's warehouse, the inventory is sorted, and depending on demand, the items may be sent to other geographical locations.
When the inventory is entered into Amazon's database, the listing becomes active, and you can then begin advertising those products. Many people opt for Pay Per Click (PPC) campaigns, or they choose external ads based on what they are selling.
When the order for an item is placed, it is processed and prepared and then shipped out to the customer. You and the customer will receive the tracking information from Amazon for each and every order.
Benefits of FBA
There are definitely some advantages to using FBA for your eCommerce business. First of all, it is a very convenient service that can save you time and money in the long run. Since Amazon is taking care of these logistics, you have more time to dedicate to other aspects of your business. Your FBA products are eligible for free two-day shipping with Amazon Prime, as well as free shipping on eligible orders for all Amazon.com customers.
Additionally, your customers begin to build a bigger level of confidence and trust with your brand and products knowing that the items they purchased will arrive in a timely manner. Amazon also provides your customers with around the clock customer support as well to help deal with any issues that may arise.
Finally, the algorithm that Amazon uses actually favors FBA sellers, which means you have a better chance of appearing in the higher search results on Amazon, which can lead to increased sales volume and, of course, visibility.
The Cons
However, like with any service, there are a few disadvantages to consider as well. To use this service, there is a monthly fee that you will need to pay. The percentage of this fee is based on how long your inventory is in storage and how much space it takes up.
During busy seasons like holidays, there may also be a delay because of the high volume of sales which can ultimately result in your items being out of stock.
Finally, with FBA, you may lose out on some valuable branding opportunities for your business because all the boxes shipped out to customers have the Amazon brand and logo on them.
Save Time And Money
If you want to save time and money, and take some of the logistics of your eCommerce business off your shoulders so you can focus on growing your business, then FBA may be just what you need to do this.
