63% of consumers start their online shopping searches on Amazon. If you’re in the market to buy something online, chances are you’ve looked on Amazon. This ecommerce and fulfillment giant has quickly become one of the largest companies in the entire world and consistently accounts for the lion’s share of e-commerce sales. In fact, in 2018, Amazon accounted for about 50 percent of all ecommerce sales in the United States. For those looking to sell their products online, Amazon is truly the place to be.
But as your Amazon store grows, storing, shipping, and fulfilling all your products can become burdensome and time consuming. But don’t worry, Amazon has got you covered. In this blog, we’re taking a look at one of Amazon’s most popular services for individual sellers, Fulfillment by Amazon (FBA), and how this service can boost sales, increase customer satisfaction, and declutter both your mind and your living room.
Here at Seller Mobile, we have the tools to optimize your Amazon store and help you reach more potential customers. Our profit and cost analytics, inventory analytics, feedback automation, and competitor analysis will give you the boost you need to dominate the Amazon marketplace.
WHAT DOES FULFILLMENT BY AMAZON MEAN?
Fulfillment helps businesses deliver their end product and improve their bottom line. When you sign up as a seller on Amazon, you essentially have two options for delivering your products. As an individual seller, you can list your products on Amazon, and following a sale, pack and ship the product yourself. However, most of us don’t have the time or space to store, pack, and ship our whole inventory worth of products. As your store grows, this becomes even more challenging.
This is why Amazon developed a second option, known as Fulfillment by Amazon (FBA). This option allows sellers to send their inventory to Amazon where it will be stored in one of their thousands of fulfillment centers. When a purchase is made, Amazon does the rest. The ecommerce giant will store, package, and ship your products, freeing up your time and energy (and, most likely, your basement or living room).
In Amazon’s own words, Fulfillment by Amazon is based on a simple premise: “you sell it, we ship it.”
HOW DOES FULFILLMENT BY AMAZON WORK?
Most Amazon sellers are surprised by how easy it is to get started with Amazon FBA. In just a few quick steps, you can sign up for this service and begin taking advantage of Amazon’s unmatched shipping, storage, logistic, and fulfillment services.
Here’s how you can get started with Fulfillment by Amazon:
1. Set up your account.
With your Amazon seller account, log in through Seller Central to set up your FBA account.
2. Create product listings.
Add your products to the Amazon catalogue and make sure you specify these products as “FBA inventory.”
3. Prepare your products.
Follow the Amazon packing guidelines to safely and securely ship your products to a nearby Amazon warehouse.
4. Ship to Amazon.
Create a shipping plan, print off your Amazon ID labels, and send your products to a nearby Amazon fulfillment center.
And that’s it. In four simple steps, you’ll be on your way to selling more products than ever before. Even better, you won’t have to worry about storing and shipping your products. Simply create your product listings, send your products off to Amazon, and let them do the rest.
IS THERE AN AMAZON FBA FEE?
While it’d be great if Amazon offered this service for free, that’s not quite how it works. In addition to their shipping fee, there are other fees associated with using Amazon FBA, which means that this service may not be ideal for every ecommerce store. Generally, individual Amazon sellers with a high volume of inventory find Amazon FBA effective because they can more easily absorb the Fulfillment by Amazon fees.
Here’s a look at some of the additional Amazon FBA fees:
· Monthly inventory storage fee: basic storage fees are assessed on a monthly basis and your daily average volume of inventory.
· Long-term storage fee: in addition to the monthly storage fee, there is also a long-term storage fee assessed by how long your products are stored at Amazon’s fulfillment centers.
· Removal order fee: for a fee, Amazon will return or dispose of your inventory if requested. This fee is applied per each item of inventory.
· Returns processing fee: when Amazon offers free shipping on one of your products, they will charge a processing fee for any returns.
· Unplanned service fee: if you ship your products to Amazon without the proper packaging or labeling, Amazon charges a fee for taking care of this for you.
Still, even keeping these fees in mind, using FBA services is often the most economically viable option available.
IS FULFILLMENT BY AMAZON SAFE?
In many ways, Fulfillment by Amazon is actually the safest and most secure method of selling your products online. When you enroll in Amazon FBA, your products (and store) are essentially receiving the Amazon seal of approval. And for online shoppers, this seal of approval goes a long way.
In fact, according to a recent study, about 90 percent of online shoppers said that they are more likely to buy products from Amazon instead of any other ecommerce site. Sure, the selection of products and fast shipping are important, but a big part of that approval is based on the trust consumers have in Amazon and the promise of its brand.
IS AMAZON FBA RIGHT FOR MY AMAZON STORE?
While Fulfillment by Amazon has clear benefits, this doesn’t mean that it’s right for every individual Amazon seller. You’ll need to assess the costs of Amazon FBA, weigh it against the convenience of the service, and determine how that will affect your bottom line. For anyone who is particularly struggling with the packaging and shipping aspect of running an Amazon store, you should definitely consider taking a look at Amazon FBA.
Amazon FBA is also ideal for those looking to beat out their Amazon competitors and scale up their stores. Since FBA works across a variety of online channels (not just Amazon), you can take advantage of their efficient shipping and logistics for any of your ecommerce channels. Additionally, since Fulfillment by Amazon uses transparent and consistent fees, you can know how much it will cost to scale up and move more products.
Smaller Amazon stores, however, may find it harder to afford the various fees associated with Amazon FBA. If your products have trouble selling, the monthly and long-term storage fees may quickly eat away at your profits. This is why it’s important to first do your research to see if Fulfillment by Amazon will be right for you.
HOW TO CANCEL FULFILLMENT BY AMAZON
If you want to give Amazon FBA a try but aren’t quite sure that it’s right for your store, don’t worry. Amazon doesn’t lock you into their fulfillment service and you can cancel your FBA account at any time. First, you’ll want to fulfill any outstanding orders. Then, you can simply log into Seller Central, scroll over to “Account,” and change the account type back to individual. This will stop you from incurring any further fees associated with Fulfillment by Amazon.
Some sellers may cancel their Amazon FBA while some of their inventory is still at a fulfillment center. If this happens and you’d like your products returned, you’ll need to click on “Create Removal Order” to begin the return process. There may be a fee associated with returning your inventory.
CONCLUSION – WHAT IS FULFILLMENT BY AMAZON?
If you’re looking to sell products online, there’s no better place to be than the Amazon marketplace. With a seemingly endless selection of products, competitive prices, fast shipping, and a trusted brand reputation, most online shoppers begin (and end) their search for the right product on Amazon. With Amazon FBA, you can save on time and storage space by letting Amazon handle all your storage and shipping needs. With Fulfillment by Amazon, you can focus on the important aspects of your online business, like determining what to sell on Amazon.
At Seller Mobile, we’re here to help you on your seller journey from start to finish. Our advanced Amazon seller software provides the tools to manage your online business and optimize your Amazon seller account. We use Amazon automation to maximize your profits, increase your brand reputation, and ensure that you use the right methods to expand your business. Sign up today to learn more about how Fulfillment by Amazon and how Seller Mobile can optimize your online store and help you find success in the Amazon marketplace.