Pick, pack, ship, deliver. The quadrant may sound easy, but it involves an entire chain of logistics before the product ordered on Amazon reaches the customer intact. Would you as a seller spend your efforts scurrying after the delivery of the products and answering to customer questions? Or would you rather sit back, give the work to Amazon itself and focus on expansion strategies?
The second one, right? Here is where Amazon FBA service comes in as your most reliable logistics partner.
What is Amazon FBA?
FBA simply means Fulfilment by Amazon.
Amazon FBA includes all the services that lets you sit at ease and concentrate more on business improvement. It takes care of pick and pack, delivery charges, shipment and storage in the warehouse.
Whether you are a newbie, or a sharpened seller, you might not have the time to handle the transportation of all these goods or provide the necessary customer support. It is no wonder that such entrepreneurs benefit much from this scheme. All types of business can benefit from this service-
- Land Owners: Those who have launched a new, useful product can expand quickly through Amazon platform and reach a worldwide audience.
- Online Stores: Why worry and fret over means of marketing when Amazon offers a platform of international customers?
- Entrepreneurs: Stay tuned with all the rapid changes in the e-commerce platform using FBA service.
Check all the service charges. Calculate your profit. Then launch your product on Amazon and gain easy returns.
The FBA tool comes in handy for calculating the exact profit. It takes into consideration a wide array of factors and calculates the exact profit you will earn. Do not get lost amidst the data and charges, for the FBA calculator does it all. It gives precise revenue calculations and decreases the risk of losing out money.
Understand where your money is going. Before you launch your product, keep all these overhead expenses within the ken of your knowledge. The main costs include-
- Upfront costs (samples, cost of goods, shipping, photography)
- Variable costs (FBA fees, storage fees, returns etc.)
- Marketing costs (promotions and pay per click)
FBA costs can go up to 15% of the price of the item and also includes $3 on the shipment charge. FBA Calculator easily calculates all the fees you will have to pay to Amazon for taking the service.
How Will You Sell Your Products on Amazon?
To sell on Amazon is quite easy. All the required tools and services are provided by Amazon. Your fees and profit can be calculated with FBA fees calculator service. Just follow the steps below-
- Register your seller account
The only prerequisite for becoming a seller on Amazon is a seller account. Open a bank account and provide the information of GST and PAN. You will get access to the Seller Central account, the one stop portal for selling on Amazon.
- Upload your listing
Once you have registered a new seller account, you need to upload the listings. Search for the most profitable products and upload the listings using the easy tools of Seller Central. You can also hire professionals from the Service Provider Network to help you make informed decisions.
- Customers see and buy your products
Reach out to your customers. Optimise your listings and research keywords to increase the Amazon product rank so that they appear on the top of search queries. If you use Fulfilment by Amazon, you would broaden the spectrum of customers. Your products would be visible to Amazon Prime members as well. You can also advertise your products with Sponsored Products and get target customers.
- Deliver your products to the customer
Here comes the most important part- the delivery. In the fast-moving world, consumers and customers are shifting towards JIT (Just-In-Time) delivery. The reliable and quick delivery of products adds customer service as a value differential that gives an edge to your product.
Amazon FBA takes care of the entire chain of logistics from sourcing to the company warehouse to delivery to the customer, including the shipping, packaging, picking and labelling.
- Receive your payment
All the payment for your sales, along with the fees provided on Cash on Delivery, is deposited in your bank account every 7 days. You can view your deposited balance along with tips to expand your business. Use and follow them to grow as a businessman in the Seller Central Account.
How Does Amazon FBA Work?
FBA helps sellers as they open up the products before Prime Amazon members-
- You send the product to Amazon Fulfilment Centre or arrange for a pickup
- Amazon stores your products
- Customers order for the product with fast, free delivery service
- The picking, packaging, shipping and delivery is done by Amazon efficiently
- Amazon provides customer support on products you sell, ensuring a great experience.
Fees Considered by Amazon FBA
Amazon FBA takes care of every minor detail from picking, packing, shipping to delivery, along with customer service. It charges a fee for its specialised service and relieving you of the hassle-
Amazon Referral Fees
Amazon charges you this fee every time you sell a product. A small price that you pay for getting the international customer base. It is a percentage of the total sales price and is usually fixed at 15%, although this may vary. It can be as low as 6% on some items, however it can go up to 45% for Amazon accessories.
If you are a new seller, choose the product you would sell judiciously to ensure minimum percentage charged as referral fee.
Amazon Fulfilment Fees
FBA can prove to be your best logistics partner. Just pay the Fulfilment fee and all the details of storage, picking, packing, shipping, delivery and customer support will be taken care of by Amazon.
If you are a budding entrepreneur who like to focus more on optimisation of business strategies to get an edge over the competitors, the service provided by FBA is indispensable. It eases your work and provides the entire logistics support to you, relieving you of the entire hassle of building trust with the customer. The product will reach the customers’ hand intact and well protected.
Monthly Amazon FBA fees
When you become a regular seller on Amazon, you have to pay a monthly subscription fee. There are Professional and Individual plans depending on the size and expansion of your business. There is a small amount you would have to pay per unit item sold if you are a small business owner.
Amazon FBA Storage Fees
Gain the trust of your customers and Amazon. In the world of service-based consumer market, if a customer finds the shelf devoid of product A, they will go for product B which is of the same type. Thus, to dominate the market, getting out of stock is a major setback.
Avoid all the embargo using the storage service of Amazon. If you are an entrepreneur who sells goods that are quickly out of stock, this service is of immense help. Pay the storage fees, based on the item size and month. You can thus decide the number of items you will require in the future in a stipulated time.
How Will You Find Best and Most Profitable Products to Sell on Amazon FBA?
You must be overwhelmed by the range of products that are scattered all over the Amazon market place. Before launching the product, you need to have a clear picture of the saleability and profitability of the products. Thus, an extensive product research and validation of the product idea is very crucial to find out what products you can sell on Amazon FBA.
Extensive Product Research
You may find some really attractive products on Amazon that you can sell. However, you should also check whether it has a market value, a reliable customer base and a profitable market. Thus, researching about a niche or a product is very important. Delve into a comprehensive research on the competition, worth, and estimated demand of your product. Find high margin products with low competition, using the revenue and sellers’ filters.
Choose a product that costs below $100
Use the impulsiveness of the customer as your bait. They will not go through reviews or ratings. They might just check the price and add it to their cart. Choose such low-priced items to gain the base of such customers. As an added advantage, you do not need to pay a very high fulfilment fee.
Check the BSR of the product
Get a competitive edge over others. Check the Best Seller Rank of your product to estimate its popularity. Choose a product with high BSR.
Research your keyword well
Use the appropriate keywords in the image title, product name and product description to drive more traffic to your product and achieve the sweet sales. Amazon keyword research is finding the right keywords to use in your product pages. These are the words that shoppers search for when they’re looking for products. Once you do the research and have the right keywords, you can strategically add them to your listings to optimize them so that their SEO ranks higher.
Best Software Services
The best way to find products that have demand in the market and are profitable is to use online tools. Here are a few of them-
IO Scout is currently a top-notch software serving the sellers on Amazon. It offers high data accuracy and low competition, apart from making the process of selling easy for you. No wonder, IO Scout has been endorsed by more than 45000 sellers on Amazon!
The software is easy to handle and is fit for any realm of seller- Private Labels, Wholesale sellers, Arbitrage and Dropshipping.
Whether you are new to selling or a dexterous player on the Amazon selling field, IO Scout helps you enter the market with high-in-demand products. Maximise your selling potential, optimise your business processes and earn high. There is an array of tools that makes IO Scout superior to other similar software. These features include Product Tracking, Product Finding, Real Time analysis of sales and remaining stocks in the FBA Inventory, FBA Calculator to ease calculations, etc. All these tools work in unison to give you a seamless experience of selling on Amazon, regardless of whether you are a pro or a beginner in selling on Amazon.
When cut throat competition is in the air, to survive, you need to adapt. This had been said long ago by Darwin. The scenario is much the same on a competitive selling platform. For your business to flourish, you need a powerful software like IO Scout to be the dominant player in the market.
Click here to read my IO Scout Review!
Click here to try out IO Scout!
Get real time data with a Chrome Extension on your Amazon website. Calculate the entire expense structure including referral fee, packing fee, service, storage and weight handling fee. Also find the average monthly price of the product you are selling.
There is a whole range of meaningful insights on Jungle Scout that a beginner or even an experienced seller might be interested in. These help in finding the most profitable product to sell on Amazon. Jungle Scout also helps the sellers by providing them with a detailed list of reliable suppliers of the product they are interested in. The seller may now choose the supplier who sells at a minimum cost to maximize the profit.
Focus on saving cost and boosting profit. Get data of your sales and profit on Amazon. Get the full financial picture with important metrics like revenue, hidden fees, expenses, and more. Also measure the performance of your PPC campaigns, using the Sales Analytics.
Calculate the Amazon inventory needs. Predict accurately how much you should order to keep your stock full and avoid stockouts with Inventory Management feature.
Attend weekly sessions and learn how to sell on Amazon. The library is full of detailed and up-to-date courses that helps in learning. Get tried and tested by real sellers on Amazon. Get instant sales data, sales estimates, request bulk reviews, validate product demand and view opportunity score. Uncover profitable products and untapped niches. Find product ideas and evaluate their revenue potential.
Find suppliers, optimize your listing, launch your product and manage your business with Jungle Scout from one platform.
Click here to read my Jungle Scout Review!
Click here to try out Jungle Scout!
Seller Labs is a performance driven Artificial Intelligence based software that boosts your sales on Amazon. Discover new keywords, track keyword placement, track competitors’ keywords and identify new and promising products that you can sell. Validate your products and get social proof by gaining reviews from customer. Build their trust using the customer support service.
Track your performance, get alerts about Buy Box and product reviews. Track how many units are sold and analyse the conversion rates. Strategize your business based on data received from the software.
Manage sponsored ads, get target customers and automate the platform using AI and advanced Machine Learning. Maximize profitability through ads optimized for your platform and target customers. Run more efficient campaigns with our native analytics platform and ML based recommendations.
Click here to read my Seller Labs Review!
Click here to try out Seller Labs!
Benefits of Using Amazon FBA
Make money, grow fast and win your customers’ hearts with FBA service.
Increase your online sales by improving your products’ visibility before a wider audience. Get a Prime logo on your product and boost sales as a majority of the customers want superfast delivery. Get trusted customer service and delivery supports from Amazon without bothering about the details.
Send your products to Amazon inventory and get all the services done from picking, packing, shipping and storage. Your FBA products are available for a one-day free delivery. So, you can connect to a huge base of loyal customers. Compete for the Buy Box and get the Add to Cart option listed.
Listed below are the major benefits and perks of using Fulfilment by Amazon (FBA)-
- Focus on your business- The storage and delivery are taken care of by Amazon. Focus on strategizing your business growth.
- Access to Amazon Prime- Premium delivery options enhances customer shopping experience and increases customer demand and loyalty. Prime products are available for a free one-day delivery.
- Pay as you go- Pay only for the services you use. There is no need to add subscription fee or additional unnecessary fee.
- Gain Trust- Amazon’s world class packaging, shipping and excellent customer service is highly appreciated. Customers rely on this efficiency and get back to purchasing from you.
- Hassle free- as your business expands, you need not worry about the logistics and delivery. Amazon does it for you.
Get a base of loyal customers- Customers would keep coming back to you as FBA service builds trust with its excellent customer support.
Disadvantages of Using Amazon FBA
- Service does not come for free. You have to pay a charge for FBA. Before you pay, do analyse whether FBA is more profitable or FBM. Make your choice judiciously.
- The storage fees will keep on increasing and you have to clear them. What if you have sent your products to the warehouse, but no one is ordering them?
- Customers send back FBA products more often, as they buy it just for testing.
- You have to strictly follow the rules laid down for FBA sellers like proper labelling of the product, etc.
As a seller on Amazon, that provides the best international online shopping cart, you would like to expand your profits and grow to higher realms. The goals would be big and you dream of achieving higher feats and lucrative profit. Here is where a lot of numbers and calculation needs to be at your fingertip. Otherwise you might end up giving away more than you are earning, ultimately pushing you to bankruptcy.
Amazon FBA helps in providing the entire logistics support to you. You can focus on expanding your business while the customer support is offered by Amazon. The customer base increases as the service offered by Amazon is reliable and trustworthy.
If you want high end gains, be sure to access the FBA service.