What Is Fulfilment By Amazon (FBA) How Does It Work
With Amazon beginning their shipping service, Amazon shipping, we are sure that this retail giant has no intentions of slowing down. Begin selling on Amazon and leverage Amazon’s enormous resources. You only need some money and a growth plan to begin selling on this marketplace. Better yet, register for their Amazon FBA program!
Is it that simple? Yes! If you find the accurate product and invest some effort and time to caring for your business, you can make tens or even hundreds of thousands of dollars every year by selling on Amazon — even as a beginner.
So, what is FBA and how does it all work?
WHAT IS AMAZON FBA?
Fulfillment by Amazon is a service offered by Amazon, as a method for third-party marketers to automate their order fulfillment and shipping services. It is a very simple concept: Sellers sell and Amazon ships.
Anyone registered in the Amazon FBA can let Amazon manage all shipping, refunds and returns, and also product warehousing in warehouses of Amazon, packing and picking, and more.
Sellers ship their products to Amazon, who store them in warehouse and then process every order as they come in. As long as you manage the sales and assure Amazon stays stocked with the goods, the rest his done for you.
HOW DOES FBA WORK?
Sellers must decide fulfillment plan when they are registering a product for sale or creating product listing on Amazon. The Sellers could switch among fulfillment methods when they want to.
The process of FBA is easy.
- Sellers get the items and send them to Amazon warehouses. Amazon will provide essential address and contact details.
- The items are then warehoused at the fulfillment center ofAmazon till an item is ordered by customer. There’s a warehouse fee, which mainly depends on the volume/size of your product.
- After placement of an order, Amazon takes responsibility of the receivings and refreshes your inventory.
- Order are shipped and packed by Amazon.
- The online retail giant manages customer care and catches up on orders. As well as Refunds and Returns are managed by Amazon.
- Amazon transfers you the revenue from the sales after every two weeks.
Note: Sellers must make sure that the shipments to Amazon’s fulfillment centers follows the online retail giant’s strict packaging guidelines.
For a lot of sellers, that’s an incredible method of expanding and scaling their business online since Amazon performs key logistic assistance. All a seller needs is to stock up the inventory and calculate the money.
As mentioned before, the service is not free. But, the costs are extremely competitive and are usually cheaper than shipping and storing the products all by yourself. Also, while Amazon manages most, still the FBA sellers accountable for selecting the product, managing inventory, and marketing.
In case you wish to understand FBA more thoroughly, you can go to Zonbase.com. The Zonbase Tips for Amazon can help your business grow rapidly.
