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Get started with Fulfillment by Amazon (FBA)

Amazon
In: Business

Selling products online is a great way to start a business and make money. And if you’re going to sell anywhere, it should be on Amazon.

The Amazon market is massive. It’s growing more than ever as people shift to shopping online for almost any type of product.

According to Business Insider Intelligence:

55% of U.S. consumers say that if they were only able to buy products from a single store, they would choose Amazon

More than 121 million Americans are Amazon Prime members

According to eMarketer, as reported by DigitalCommerce360:

In 2020, Amazon was responsible for 47% of U.S. ecommerce spending in 2020

Among total consumers, 51% are making purchases on Amazon weekly or more often, with 15% shopping on the platform 2-3 times a month.

Amazon is a powerful sales channel for sellers, but it can be confusing to get started. In this article, I’ll cover how to sell on Amazon FBA for beginners.

Why sell on Amazon?

Amazon is the world’s largest online marketplace and there is an enormous opportunity for you to tap into as a seller.

In fact, you may be surprised to learn that:

Most people (76%) begin their online shopping journey on Amazon.com

Among total consumers, 51% are making purchases on Amazon weekly or more, while 15% shop on the platform 2-3 times a month.

And many of these consumers are purchasing products from third-party sellers through Amazon’s Marketplace. In fact, in 2018, more than half of all purchases made on Amazon were from third-party sellers!

Fulfillment by Amazon (FBA) is a service we offer sellers that lets them store their products in Amazon’s fulfillment centers, and we directly pack, ship, and provide customer service for these products. Something we hope you’ll especially enjoy: FBA items qualify for FREE Shipping and . If you’re a seller, Fulfillment by Amazon can help you grow your business. Learn more about the program.

If you’re a seller, Fulfillment by Amazon can help you grow your business & if planning to sell certain products look for Gtin exemption https://www.zonbase.com/blog/how-to-apply-for-amazon-gtin-exemption

Amazon sells tons of products online and ships them to customers around the world.

But it doesn’t stock any of those products on its shelves — instead, it outsources everything to third-party merchants.

For example, if you buy a video game from Amazon’s website, it might ship to you from an outside merchant — not Amazon.

To make shipping easier for merchants, Amazon created Fulfillment by Amazon or FBA.

This program lets merchants send their products to massive Fulfillment Centers where they’re stored in warehouses.

When someone orders one of these products on the site, it’s picked from storage by an employee or robot and sent directly to the customer through one of Amazon’s shipping

Different Type of FBA

Private Label (PL) In a nutshell, this is the process of sourcing a product from a manufacturer, labeling it with your logo or other unique identifier and selling it to consumers. Most people suggest going with a product that you have some interest in or perhaps have an existing website/business for.

Wholesale: This is the process of buying products from a manufacturer or distributor at wholesale prices. The strategy here is to buy low and sell high. This method can be done on Amazon or any other online platform and it typically requires less capital than PL, however, your profit margins are much smaller as well.

Reselling/Arbitrage: This method involves finding deals on items that are already being sold by retailers. (think Amazon) and reselling them for more. You could find these deals online, at thrift stores, garage sales, clearance sections etc. You can then sell them on Amazon FBA or any other online platform.

Dropshipping: This method involves partnering with a manufacturer or distributor who stocks the inventory and ships directly to your customers while you manage the sales side of things like marketing and customer service. Some companies will do this for you automatically once you set up an account but I would advise against this as their prices are typically much higher

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