The US ecommerce market is largely dominated by Amazon. According to reports, Amazon makes up to 41.4% of the annual retail ecommerce sales and will contribute to over 50% growth in the US online sales in 2021. With around 9.5 million Amazon sellers globally, some 73% use fulfillment by Amazon (FBA) to successfully boost sales and increase company revenue.
As a new Amazon seller, you might be wondering how to sell on Amazon FBA and increase your sales and profits.
In this article, we will look into what Amazon FBA is all about and provide an easy guide to help you sell with fulfillment by Amazon (FBA).
Fulfillment by Amazon (FBA) is a service that Amazon provides to sellers on its platform. These services include storing, packaging, shipping, customer service, and more. The process simply involves sending your products to an Amazon fulfillment center where it is stored until sold.
Here’s what you get from using Fulfilment by Amazon (FBA):
For many Amazon sellers, the FBA service is a convenient and cost-effective way to ship products, offer excellent customer service, boost sales and grow revenue with Amazon. This is in contrast to Fulfillment by Merchant (FBM) where you handle all the fulfillment.
Amazon FBA offers excellent services. But this comes at a price. First, it is important to note that Amazon charges its fees based on some factors like product weight (volumetric size), type and dimensions. Amazon splits product sizes into two major size categories - Standard Size and Oversize. A standard-sized product weighs less than 20 pounds and doesn’t exceed a dimension of 18” x 14”x 8”. An oversize product weighs more than 20 pounds and exceeds 18 inches. The heavier your products, the more they will cost you.
Second, you will need to pay for storage and fulfillment fees. Storage fees are incurred for storing your products in Amazon’s fulfillment center. You also need to note that the longer your inventory is stored, the more it will cost you. Fulfillment fees typically cover packaging, shipping, customer service as well as returns if applicable. There are a few other fees that come with using Amazon FBA. Amazon offers settlement fee reports on the FBA dashboard to help you see what you will be paying for using Fulfilment by Amazon.
Here’s a step by step guide to help you sell with Fulfillment by Amazon:
If you are just starting on Amazon, the first step is to choose a product. To choose a product, start by creating a list of some product categories. Perhaps the top five categories you are interested in. Next, carry out product research. This is important because though you might be passionate about selling a product, it might not be in demand. This can affect the profitability of your business.
Use platforms like Google to check for products that customers are searching for. You can also carry out keyword research or go through Amazon’s bestseller pages to get deeper insights into what products are most profitable.
After thorough product research, the next step is to find suppliers for your selected product. You can go through suppliers directories on trusted sites or look out for local manufacturers making quality products you can sell through your Amazon account.
Alternatively, you can approach successful businesses on Amazon and ask to get a list of their suppliers. Keep shipping fees and delivery time in mind to ensure you get your inventory quickly and most cost-effectively.
Before selling with FBA, you will first need to sign up to sell on Amazon. You can either sign up for an individual or professional account.
An individual account is appropriate if you expect to be selling fewer than 40 products and don’t need any advanced tools. This comes at a fee of $0.99 per sale. A professional account, on the other hand, is appropriate if you project that you will be selling more than 40 products. This comes at a monthly subscription of $39.99 every month.
To set up your account, you will need to provide your bank details, credit card details, government-issued identification, tax information, and phone number. After setting up your seller account, add FBA to your account. To do this, simply click on the Actions tab on your seller central account and click on Change to Fulfilled by Amazon.
To create your product listings, go to your Amazon seller central account and click on Add Product located at the inventory drop-down menu. Then, create a new product listing and select a product category. Add each product title, description, brand name, price, and product code. Lastly, save all entries and click Finish. Remember to optimize your listings using relevant keywords, high-quality images, and other online marketing strategies to drive traffic and boost sales.
Once you have created your account and product listings, prepare your items for shipment to Amazon’s fulfillment centers. Package and label each of your products accordingly for easy transportation to the fulfillment center and customers.
Create a shipping plan, print Amazon’s ID labels, and send to Amazon fulfillment centers. Amazon will decide which fulfillment center you will be shipping your products to.
After shipping your products to Amazon, you can market your products and start selling!
Fulfillment by Amazon is an incredibly beneficial service that takes away the burden of order fulfillment and customer service off your shoulders. However, you want to make sure you maximize sales by ensuring the benefits outweigh the costs.
If you want to know how to increase conversion rate on Amazon FBA and grow company revenue, here are a few tips that can help you:
Starting a business with Amazon FBA is a great way to increase sales and grow revenue. With FBA, Amazon handles all your order fulfillment and customer service, allowing you to focus on marketing your products and building your brand. At ePlaybooks, we can help you grow your brand, giving you the exact online marketing strategies to double your sales and revenue.