As an online seller, participating in the Fulfillment by Amazon, also referred to as the Amazon FBA program, is a good choice. It is a highly popular way to boost your ecommerce operations and is something that is worth considering. This system allows you to use Amazon’s fulfillment and shipment infrastructure to deliver your products. By utilizing Amazon’s facilities, FBA takes the burden of shipping your products off of your shoulders. At the same time, it allows for robust and timely deliveries that help you strengthen your brand.
It’s true that it is easy to become an Amazon FBA seller. However, there are also a set of rules that need to be learned in order to be successful. Here’s a look at some of the top things you should know in order to become as effective of a seller that you could be:
Learn the Right Way to Send Your Products to Amazon
Before your customers can receive your products through an Amazon fulfillment center, you need to send them to Amazon yourself. You can either use an Amazon-partner carrier, such as UPS or FedEx, or select your own. This process can be somewhat confusing, and it can also be difficult to learn how to do it all on your own. Consider hiring an outsourced 3PL provider in order to handle this piece of the business for you.
Package Your Products the Right Way
Knowing where to send your products is only part of the battle. You also need to package and label your products according to guidelines set by Amazon FBA. This also includes creating relevant labels and pasting proper barcodes provided by Amazon. The process to print this information is quite intuitive, which makes it easier to fulfill this requirement.
Sending Your Products on Time
Amazon is known for being timely and reliable. This is something you can take advantage of as part of Amazon FBA. It also means that you also need to set the same standards for your business that Amazon sets for itself. However, you can’t hold up to this expectation if it doesn’t have the products to ship in the first place. This is why, one of Amazon FBA’s biggest requirements is to ensure timely shipment of your products to Amazon’s fulfillment centers.
Cost of Using Amazon FBA
While the Amazon FBA program comes with plenty of advantages, it is important to remember that it isn’t free. Using Amazon’s fulfillment, delivery, customer service and other infrastructure comes at a certain cost. These particular fees are calculated as a flat fee that’s charged on a per unit basis. The costs vary according to factors such as the weight and size of the product. Since you can use Amazon FBA for products sold on other channels such as another e-Commerce platform or even your own website, the cost for this multi-channel fulfillment also varies.
However, when you factor in the advantages of the Amazon FBA program such as increased exposure for your business and faster delivery for your products, these costs are often justified. Just make sure that you calculate all expenses and revenues for your products, so you can make optimal profits by participating in the program.
You can build a worthwhile business using Amazon FBA, but you might need help. Contact American Warehouse for more information.