You have already heard about Amazon – the biggest online retailer in several countries around the globe including the UK and USA.
But what may come as a surprise is when you buy something off the Amazon platform, you are actually buying from a third-party retailer using a service known as FBA – short for “Fulfilment by Amazon”.
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What Exactly is Amazon FBA?
With an FBA business, you don’t have to rent expensive storage space to store your products, but store them in Amazon’s warehouse.
Plus, you do not have to worry about packing and delivering the orders received, as Amazon takes care of that too!
But that is not all—Amazon also takes care of most of the customer service such as processing customer returns.
Customers get the same customer service, payment, and delivery options if they purchase directly from Amazon or FBA sellers.
Becoming an FBA seller allows you to focus on your products and marketing, and not get distracted with planning delivery, storage, and payment options.
You simply acquire the stock, and deliver it to the designated warehouse, and voila – Amazon takes care of the rest.
How to Get Ideas and Source Products for Amazon FBA Business?
If you have your own products that you plan on selling via your Amazon FBA business, then skip this part, otherwise read on!
Amazon is home to literally millions of products, so to be successful as an FBA seller, you have to do some deep market research first to see what hot, and what is not worth getting into.
There are several tools that help to mine important data about products on Amazon.
After you download this data, you can narrow down, and finalize the products you wish to sell.
In terms of sourcing products, you can do it from local manufacturers or drop shipping websites located overseas.
These websites and manufacturers will ship the order to any location you choose, but you want to receive them first so that you can check them before shipping them to the Amazon warehouse.
Steps to Starting an Amazon FBA Business
If you do not already have one, you will first have to create an Amazon seller account on the Amazon website.
You can this easily by visiting the Amazon website in the country you wish to start your FBA business, scrolling down to the bottom of the page, clicking on “Sell on Amazon” under the link “Make Money with us”.
You will now have the option to choose between an individual and a professional seller account.
An individual account is free to use, so there is no subscription fee, but on the downside does has its limitations.
A professional account will cost you $39.99 per month, with the first month free while you get your account setup.
This type of accounts does not any limitations but allows you to enjoy all the benefits Amazon provides for its FBA sellers.
Setting the Fees for Products
Whether you choose an individual or a professional Amazon account, you will have to pay seller fees.
These fees depend on a number of different variables including the type of account you have, the size, weight, shape of your products.
You will have to get in touch with an Amazon FBA business representative to determine the exact amount you will be charged as fees.
Marketing Your Products
Now that you have successfully opened your Amazon products, you will have to promote them, so that they sell quickly.
Remember, you need to treat your FBA business like any other business, therefore should create marketing material such as a logo, website, etc. to make your business stand out from the crowd.
You should also look into getting Amazon sellers insurance to protect you and your business against any liabilities.
Starting an Amazon FBA business can be highly lucrative, as long as you do it right.
Opening an FBA business is easy, but you will have to put in the effort to make your business a success.