Amazon FBA is a service provided by Amazon where, as a seller, you get more flexibility. FBA stands for Fulfillment By Amazon and this Amazon's service provides assistance for storage, packing, and storage. This way, sellers won't need to worry about all these processes.
As a seller who wants to take advantage of the Amazon FBA, you just need to ship your products to an Amazon fulfillment center. As soon as they arrive they will be stored in warehouses until they are sold. So, whenever you sell one of your products, Amazon employees will be the ones handling the preparing, packaging, and shipping of the product.
Benefits Of Using Amazon FBA
As you probably already realized, there are many advantages for sellers who use the Amazon FBA. The most important ones include:
#1: You Will Have Amazon's Name Associated With Your Products:
As you know, everyone knows Amazon and its quality. So, being connected to their brand makes your customers trust you even more leading to more sales.
#2: Inferior Shipping Fees:
As you can imagine, Amazon has a wide range of contracts with multiple shipping companies that allows the company to benefit from lower shipping fees. So, since you will be using their FBA, then you will also be benefiting from these lower fees as well. In addition, you should keep in mind that you will also be able to offer free shipping over a certain amount. After all, products sold through FBA are eligible for Amazon Prime and FREE Super Saver Shipping.
#3: Shipping Standardization:
One of the things that you may now know about Amazon FBA is that your orders will be processed in the exact same way as Amazon processes its own merchandise. This will allow you to keep all your merchandise under control.
#4: Multi-Channel Fulfillment:
One of the main benefits that most people don't know about the Amazon FBA is the fact that sellers can take advantage of this service not only with products sold directly on Amazon but also through multiple channels. So, if you have a website where you also sell your products, you can have Amazon handle all your handling and shipping.
Amazon FBA Fees
As you can imagine, Amazon FBA is not free. There are some fees associated and, unfortunately, these are the base to keep many sellers away from this service.
#1: Standard Seller Fees:
When you sell an item, Amazon will take between 15 to 18% of the product price. Notice that the exact fee varies from item to item.
While according to Amazon you will only pay 15%, the reality is that there are also some hidden fees such as when you need to deal with a refund.
#2: Storage Fees, Pick And Pack Fees, And Weight-Handling Fees:
Yes, you read it right. The truth is that Amazon will charge you independent fees on the storage, pick and pack, and even on the weight-handling.
#3: International Shipping:
Amazon recently added the Global Export service that allows you to send your inventory all over the world.