To earn income online, the most famous way has become Amazon FBA. Over 2 million people worldwide selling and earning on Amazon.
In all sales of Amazon, about half of them come on Amazon from sellers of third-party. However, about 66% of sellers use FBA from 10,000 top sellers.
What about Amazon FBA?
FBA (Fulfillments by Amazon) works as:
1.The first customer send to Amazon their products
2. Then Amazon on their warehouses store these products
3. And then customer order their products, Amazon picks these products and packs them, then ships products and tracks the order to the customers.
4. Amazon also handle return issues or refund.
Amazon also charges fulfilment fees or storage fees, and in the world, a fulfilment network is Amazon that most advanced.
Why Matters Amazon FBA?
Active customers on Amazon 300 million or more, While in the U.S Prime subscribers about 90 million. The customers that use FBA brands available for Prime buyers specifically. That’s why Amazon FBA matters a lot.
How Works Amazon FBA?
Amazon within FBA handles all work. Amazon FBA works as:
- To Amazon, customers send their products:
Across the U.S about 100 warehouses of Amazon. The customers send their products to Amazon then it will inform them which warehouse ship their products.
- Products sorts and stores of customers by Amazon:
When Amazon receives products of customers, then sort them for their inventory.
Amazon, in their warehouses, safely stored these products.
- The customers buy their products:
When customers order their products, Amazon accepts customer payments and automatically update their inventory.
- Amazon ships the products of customers:
After payment, the workers of the warehouse pick a product from storage, then in a box pack it and ship this box to the customer.
- Customer services also handle Amazon very well:
After shipment, when customers receive their products, Amazon makes sure that they are satisfied or not through follow them. So if customers have some issues, Amazon also returns the products and refunds.
- The Customer gets paid:
Every two weeks, Amazon totals all customer sales, seller fees deducts, and profits deposit directly to the customer bank account.
Customers that are using Amazon FBA what responsibilities of them
- To sell customers choosing products
Customers choose products on Amazon to sell; they should choose those products that will quickly sell if storage fees they want to avoid.
- In stock customers keeping their inventory
Customers should regularly check on Amazon their inventory levels to make sure in stock their products stay.
Benefits of FBA Using
The benefits of FBA using are:
- FBA provides logistics or shipping effortless
FBA managed all fulfilment of customers, so it may time-consuming. More time spent on product packing and their shipping, and someone who handles this for hiring him more money spent. So FBA provides logistics or shipping effortless to the customers.
- FBA also discounted rates of shipping
FBA also discounted the rates of shipping. However, it also provides some products on free shipping so this an advantage for customers.
- FBA also have management of returns
The return of products is just a pain. But FBA also has the management of returns if customers not like some products, it also refunds, but only charge return fees, that not enough for their work.
- FBA also have management of Customer service
The reputation of the customer service of Amazon is excellent.
- FBA potentially provide unlimited storage space
FBA potentially provides unlimited storage space to the products of customers. So the customers that using FBA do not worry about little storage space.
- FBA provides quick delivery
Amazon over the world has hundreds of centres of fulfilment. So customer easily gets their products within 2 days.
My colleagues at assignment writing service are getting lots of advantages from this Amazon FBA business; it will benefice you too.
Disadvantages of FBA Using
Although Amazon is the best selling machine in the world, despite its benefits, it also has some disadvantages.
Disadvantages are:
- FBA charges more
Amazon has both fulfilment fees and storage fees charges. So customers should make sure that after paying these charges, their product still profitable or not.
- Long-term fees for storage
FBA has long-term fees for storage. Customers should notice their inventory; if the product keeps in storages, then they will face storage fees sky-high.
- Preparation of products can be difficult
To prepare the products and then ship to the customer’s, Amazon has guidelines very strict. So the customers that are using the first time Amazon they get trouble finding all the details.
- Customers see more return
Customers like the return process that so easy, that’s why most customers return the products.
- For customers, it can be difficult to tracking inventory
Customers should given all the aspects, the products that available are the top products or not; it’s challenging, what type of order needs customers, and what type of products not selling. So for customers, it is difficult to tracking inventory. It is challenging for customers to keep in mind all changes in their inventory.
- The Sales tax of FBA can be difficult.
In the United States, every state for the collection of sales tax has different rules. Amazon in every state has fulfilment centers. So sales tax is difficult for Amazon.
Some tactics on Amazon FBA selling successfully
Some tactics are:
- Customers that find profitable products should research of competitors of Amazon.
- Customers want to sell those products they should be smart about these products.
- There are a lot of products on Amazon, the customers that started first time shopping on Amazon should start with small products.
- Amazon required the exact photos that listing on Amazon. So customers should get an excellent photo of that product that they want.
- Customers should use Amazon Marketing Services.
Amazon FBA in the world the largest network of fulfillments. It has several fulfilment centres in every state. Millions of customers get an advantage through this network of Amazon.
Customer’s services of Amazon papular in everywhere. It also has large storage spaces. Customers get the best products so it is a great way of shopping.
Amazon FBA also integrates with other channels eCommerce. So customers can sell on both Amazon and channels. Through these two ways, Amazon can handle all management of customer’s inventory.
Amazon has some disadvantages, but through using tactics, customers can minimize these disadvantages.