Home » Starting with Fulfillment by Amazon- What is Amazon FBA?

Starting with Fulfillment by Amazon- What is Amazon FBA?

Selling products and services today has never been this easy, especially if you plan to enter the virtual market. 

However, managing a business successfully takes a lot of hard work. Developing your products and services, creating websites and content to attract potential customers, managing ads, social media, and customer service — these tasks can be overwhelming if you do them by yourself. 

What if there’s a better way to save you from these hustles and bustles? Yes, there’s a place for that —  Amazon. 

Amazon has been in the business for many years now. Despite having more than 5 million sellers and adding 4000 sellers per day, the market continues to grow remarkably. 

Fulfillment by Amazon (FBA) is one of the most successful business models today used by thousands of sellers worldwide. With Amazon FBA, you can free your time and focus on more critical parts of your business. 

What is an Amazon FBA Business? 

Fulfillment by Amazon is a service that helps sellers store their products on Amazon’s fulfillment centers, pack products, provides customer service, and ships them when an order is made. In short, Amazon is doing everything for you.

How FBA works?

It’s simple. As Amazon says, “You sell it, we ship it.”

Here’s a detailed list of how the FBA process works:

  • You can send your listed items to Amazon fulfillment centers to be stored.
  • Once Amazon has your products, they will place them in their system, where you can monitor them for tracking.
  • Once a product order is placed, Amazon picks and packs your product in their center for delivery.
  • Amazon ships your product according to the method of purchase provided by the buyer.

Amazon also provides customer service and item management, and returns. Of course, these services come with fees and deductions to your item’s retail price.

What are the advantages of using Amazon FBA?

Despite fees and deductions, why are so many sellers still use Amazon FBA?

Amazon is a very established company worth a trillion dollars, where 50% of its sales come from 3rd-party sellers.

Another advantage of using Amazon FBA is you have a well-known platform with an already established audience. It will be easier to build customer trust if your products are labeled as Prime. You also won’t have to worry about most of the customer service tasks since Amazon covers return management handling.

What is the future of Amazon FBA?

Amazon now is overflowing with different kinds of products and being saturated with thousands of sellers every day, and you might wonder, is it still worth using Amazon? Yes! 

It’s not too late to own a successful Amazon FBA today. The company’s annual sales are continually increasing every year, 50% of which is made by 3rd-party sellers. It just means that right now is the perfect time to start using Amazon FBA!

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