(New to the world of retail arbitrage?
In this post youll find:
What Is Amazon FBA?
You sell it, we ship it.
Aileen Perilla/ The Penny Hoarder
Thats Amazons sales pitch for Fulfillment by Amazon (commonly called Amazon FBA).
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
The best resource for getting started with using FBA isAmazons own website, but weve covered the basics below.
From there, you might elect to add FBA to your account.
Set Up Your Listing
Creating a listing for your product is crucial to your success when selling on Amazon.
Check outAmazons simple listing tutorial.
Deliver Your Products to Amazon
Now its time to prepare your products to be delivered to Amazon fulfillment centers.
(Youll do this before you even sell anything.)
double-check your products are in compliance with all ofAmazons guidelines for package prep.
The guidelines are pretty specific, so its worth spending some time with them.
Once youve prepped your packages, determine which Amazon FBA fulfillment center you should be shipping your items to.
Amazon workers will pick them for delivery and ship them to their customers.
If customers have any inquiries or want to return the items, Amazon will handle that process as well.
it’s possible for you to instead focus on finding more inventory and creating your listings.
Weigh the pros and cons of using FBA before sending out your first shipment.
Its no secret that Amazon corners the market on ecommerce.
With more than 300 million active customers, Amazon regularly ships millions of orders each day.
Those savings are passed on directly to Amazons web connection of third-party sellers who participate in FBA.
Selling through FBA means Amazon handles all of that for you.
That third item is very important to FBA sellers.
In 2020 and beyond, having a top customer experience can make or break a sale.
Customers expect to be treated fairly and honestly, with quick actions to remedy any less-than-ideal experiences.
Providing customer service that meets these standards can be challenging for third-party sellers.
But if you use FBA, you dont have to worry about this aspect of the business.
Amazon offers customer support 24/7 via phone and email and will handle all customer queries regarding their orders.
Amazon also handles the returns process so you dont have to put any thought into it.
Handling returns well is crucial for your business.
The biggest downside to selling via FBA is the cost.
So what is the cost of using FBA?
Unfortunately, it varies.
The typical pay-as-you-go model includes two fees: 1) inventory storage fees and 2) fulfillment fees.
But depending on your scenario, you may end up paying more.
For example, if your units are just not selling, you could wind up paying long-term storage fees.
Amazon has strict guidelines that can be overwhelming to stay on top of.
Orders must be properly prepared and labeled or you risk accruing those unplanned service fees.
If you dont trust yourself to catch all the small details, you may not want to use FBA.
Youll still get the money for the sale, but the other seller now retains your Indiana-based product.
Opting for this can save you time on labeling and prepping your products.
However, you lose the ability to guarantee the quality of your product.
Sales tax can already be difficult to navigate when selling on Amazon and other e-commerce sites.
But when you ship directly from your home, your business technically operates in a single state.
Customers are more confident in a purchase when they see it has positive reviews and lots of them.
Instead, bundle yours with a cheapBobs Burgersposter to make your listing more unique.
Youre likely to sell your bundle more frequentlyand you might charge more for it.
Invest in the Right Tools
Paying for Amazon FBA is not where the investments stop.
He lives in Ohio with his partner and their three-legged dog.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
