How to Get Started as an Amazon FBA Seller.

How to Get Started as an Amazon FBA Seller.

If this is the first time you’ve discovered Amazon FBA, don’t worry. We want to make sure you understand how it all works. This guide will cover the basics of How to Sell on Amazon FBA.

Amazon FBA literally means Amazon Fulfilled-By-Amazon. In the Amazon FBA program, Amazon does all the hard work for you.

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Here’s how it works:

  1. First, you send Amazon your products and they store it in one or more of their million acre fulfillment centers. The fulfillment centers are like massive warehouses run by robots and hardworking Amazon employees.
  2. Then, your products are inventoried and sorted. They are taken good care of. And if on the off-chance something is damaged in one of Amazon’s warehouses, Amazon will actually reimburse you the full retail price for the damaged good!
  3. When a customer places an order on Amazon for your product, Amazon handles the transaction for you. The entire process is automated.
  4. Next, your product is picked from its place on the shelves, packed into a box, and shipped to the customer on your behalf.
  5. After your product arrives to the customer, Amazon follows up with the customer to make sure everything is okay with the order. And, if any need to be made, Amazon automatically takes care of that, too.

If Amazon does all the work, what do I do?

Now you’re probably thinking, “Okay, that all sounds great! But what do I actually do?”

As an Amazon FBA seller you will have to:

  1. Pick the products. Amazon handles all the back end work, but you need to decide what to actually sell. I’ll tell you about a few different methods of selling products on Amazon in a moment.
  2. Keep inventory in stock. Amazon will let you know when inventory is running low. But it’s your job to make sure that the things you sell stay stocked up.
  3. Promote and advertise. Amazon is a massive catalog of millions of products. Therefore, you’ll need to do a little work to make sure people find your products. But don’t worry–it’s pretty easy!

What does it cost to sell on Amazon FBA?

Selling on Amazon FBA is very reasonable to get started with. In fact, if you’re selling products that you already own (like unwanted items around the house), you can virtually do it for free!

Individual and professional seller accounts

There are two types of Amazon FBA seller accounts: individual and professional. Individual seller accounts are free, but have higher sales fees. And professional accounts have a monthly subscription fee of $39.95, but lower fees. We recommend you get a professional account if you plan on selling more than 40 items per month. But if you want to start slow with only a few items, then individual may be better for you.

Amazon fees

Like many online marketplaces, Amazon takes out fees for their services, usually after a sale has been made. Here’s the quick version of those fees:

  • Amazon takes a 15% referral fee on all sales for most categories.
  • If you use Amazon’s FBA service, they take out fees to cover the shipping and handling costs for your products. However, these tend to be less than what it would cost to ship it yourself.
  • Some categories, like books and DVDs, have an additional flat fee.
  • If you sell on an individual seller plan (no subscription fee), Amazon charges an additional $1.00 flat fee. Hence why we recommend going professional if you’re going to sell 40 or more products per month.
  • Keeping your inventory at Amazon fulfillment centers too long can result in long term storage fees.

If this sounds like a lot, don’t worry! The fees overall are pretty low and actually end up costing you a lot less were you to do all the work yourself.

Inventory costs

Depending on the type products you choose to sell on Amazon, your inventory costs will vary. We recommend the private label method which does come with a moderate investment upfront, but you might choose to start with just a few things around the house to get a feel for how to sell on Amazon FBA. It’s totally up to you!

Which is better to sell on: Amazon or Ebay?

This is a question that’s as old as ecommerce itself. And ultimately, it depends on you and what you want out of your business. Some people swear by Ebay. While others, like myself, think Amazon is the best place to start an online business. I think the best way to sum up the difference between the two marketplaces is like this:

  • Ebay is like the world’s biggest flea market. You set up your “stand”, offer your products, handle transactions, shipping, and everything else. It’s 100% your responsibility. Therefore, you may end up putting more work into it for less profits.
  • Amazon FBA is like owning a shelf at a very large department store. Your biggest job is to make sure that your shelf stays stocked and that it’s visible. Unlike ebay, however, the department store handles the transactions, shipping, and all the tough work. In my experience that equals less work and more profits.

references: junglescout, amazon, ebay

Get started now with Amazon FBA. Here’s a link:
Amazon FBA

If you haven’t already signed up for Amazon Prime, here’s a link:
Try Amazon Prime 30-Day Free Trial

If you want some more information and products related to Amazon FBA I’ve listed some below:

What is Fulfillment By Amazon (Amazon FBA)?

What is Fulfillment By Amazon (Amazon FBA)?

For those of you who have not yet heard of this or who simply don’t fully understand, Fulfillment By Amazon otherwise known as Amazon FBA is a service Amazon provides its sellers. Essentially, sellers send in their products to an Amazon storage and distribution center close to their main customer base where they are stored until purchased and then sent to future customers.

Do keep in mind that Amazon is well known for its global logistics capabilities and has created a new standard in eCommerce when it comes to delivery times.

The bottom line is that Amazon FBA is a storage and distribution service which Amazon offers sellers, at a fee of course.

The Amazon FBA Process

how amazon fba works
  1. Shipping your product to Amazon
    Following Fulfillment by Amazon guidelines you will need to:

    • Label
    • Pack
    • Set up a shipping plan in your Seller Central dashboard
  2. Amazon storing and tracking
    Once your products arrive at the warehouse Amazon sorts your inventory and sometimes sends it out to different distribution centers based on geographical demand. For example, they may send some of your merchandise from their New York center to their LA center since demand is higher in LA at the moment. Do note that this step in the process does not require anything on your part and that you can decide whether or not Amazon is able to change and/or commingle your merchandise – more on this later on.
  3. Adding your listing
    Once your products arrive and are properly entered into Amazon’s database your listing will become active and you can start advertising (though this is completely optional) it either internally using PPC (Pay Per Click) or externally using Facebook ads and the like.
  4. Orders start rolling in
    When an order is placed on Amazon, the item is immediately processed and prepared to be shipped out. If you are selling on a third party website (such as eBay or your own website) then any order placed will need to be either automatically or manually routed through MCF or Multi-Channel Fulfillment.
  5. Shipping and tracking
    Once the product is chosen in the closest fulfillment center to your client and the box is packed and ready, your item is shipped out. At this stage both you and your customer can track the product’s shipping status using tracking information provided by Amazon.

If you want some information on how to get started with Amazon FBA, here’s another guide:
How to Get Started as an Amazon FBA Seller

Get started now with Amazon FBA. Here’s a link:
Amazon FBA

If you haven’t already signed up for Amazon Prime, here’s a link:
Try Amazon Prime 30-Day Free Trial

If you want some more information and products related to Amazon FBA I’ve listed some below:

10 Amazon Deals You Don’t Want to Miss Today

10 Amazon Deals You Don’t Want to Miss Today

You survived another week, so your reward is a roundup of the best amazon deals out there right now. Highlights from today’s list include the return of a sale that drops Anker’s best fast wireless charging pad to one of its lowest price ever (just $13.99!), discounted Apple AirPods now that the 2nd-gen version is out (with no improvements at all to sound quality or design, so you might as well save some money), Amazon’s best-selling Bluetooth earbuds for just $19.99 if those discounted AirPods are still too pricey, the $60 Roku Streaming Stick+ for just $49, an extra $25 off Bose’s already affordable Solo 5 TV Sound Bar, a Samsung EVO 128GB microSD card for only $19.99, Anker’s popular new Soundcore Liberty Neo true wireless earbuds for $49.99 instead of $65, deep discounts for one day only on three different Belkin home Wi-Fi solutions, and plenty more.

See today’s best amazon deals below: