Amazon is taking globalization into another level as it brings us closer to the products that they offer.
They are one of the top companies when it comes to e-commerce, their goal for their business is to take advantage of their technology to bring efficient approaches by bringing products closer to consumers.
They can’t do it alone, that is why they made a platform for businesses that need help to sell their products to a wider audience. They wanted to give smaller businesses an opportunity to sell their products and make their brand well-known for people to recognize and use.
It is called Fulfillment by Amazon, an eCommerce service that will provide what every business wants and needs. I am going to talk more about their service that will let you know if this is the right platform for you by taking a look at their service, features, benefits, and pricing in my Fulfillment by Amazon review.
What is Fulfillment by Amazon?
This is a service offered by Amazon where businesses use their company to sell products, a big advantage as they have the most advanced fulfillment networks in the world today. Fulfillment by Amazon allows anyone to sell products or any items on their platform. They also provide storage of the businesses’ items in any of Amazon’s warehouses worldwide. In addition, they supervise the handling and shipment of the products to your customers as well as payments, refunds and even provide customer service.
Fulfillment by Amazon takes its name from being a full eCommerce service that takes care of everything. This will make businesses easier to manage, instead of the time-consuming work you’ll be able to focus your time on something else that will make your business better.
Why use Fulfillment by Amazon?
Having an eCommerce business is not a joke as it requires a lot of work. It is a big responsibility and a challenge and even time-consuming as it involves a lot of logistics like taking orders, processing, shipment, delivery and dealing with customer service. It is also a hassle to handle taxes, regulations and a lot more that makes it so stressful.
If you are the type that leans more on a passive type of income, wants to earn a lot without so much responsibility under your belt then this is the right platform for you. Fulfillment by Amazon will be suitable for you as you just need to give them your products to sell and they will handle everything. From storage, shipping, payments and customer service this is an all-in-one perfect platform.
With using Fulfillment By Amazon, your business will boost its sales because of the greater market visibility and your customer will trust it more because of the credibility that Amazon has to offer.
Who can use Fulfillment by Amazon?
Anyone can avail Fulfillment by Amazon no matter how many products you want to sell.
You may be a small, medium or big size company, it doesn’t matter as long as you can follow their guidelines and rules as their seller.
The service is most beneficial to those who sell small items, who sell via multiple channels and those who are already selling through Amazon. Selling through FBA doesn’t just give you more money for your business but it will give you a big opportunity to move your business forward.
How does it work?
Fulfillment by Amazon handles all the work and how they do it is very simple. You just sit back and relax and let Amazon do the hard work.
The first thing to do is register an account with Amazon then add your product listings. After verifying everything you need to send your products to an Amazon fulfillment center near you. The center will receive your inventory and stores them and you get to monitor your items through their tracking system. When a customer orders items from Amazon’s website or another eCommerce platform or even from your own website, this will be registered in their system. Amazon then will pick and packs the sold item and ship it to the customer’s preferred method are given tracking information. Lastly, Amazon also provides return management for items and handles customer service.
Fulfillment by Amazon Integrations
Amazon has been partnering with different platforms to reach more people. Currently, they are partnered with Shopify, BigCommerce, 3dcart, and Magento 1 & 2.
These platforms are compatible with FBA that gives them a comprehensive array of tools in order for them to drive their business with Amazon. The integration includes a lot of things like ordering, selling, payment, tracking, and a lot more.
What are your responsibilities when you avail Fulfillment by Amazon?
As a part of Fulfillment by Amazon, you also have a few responsibilities that you need to comply with.
You are in charge of what products to sell but you need to be wary of this. You need to choose wisely what to sell to avoid storage fees and it will be best to choose a product that will sell fast. When it comes to inventory you need to make sure you have stocks of your products on storage and check it regularly. Lastly, since Amazon is doing all the work for you, you need to make sure that you can market and advertise your products well and not rely on just Amazon being popular especially if your products are not well-known branded ones.
Pricing and Rates of Fulfillment by Amazon
As part of Amazon’s business, you need to pay fees for the services that they will provide you. There are two types of fees that you need to pay, those are Fulfillment fees that cover the fulfillment cycle such as order picking, packaging, shipping cost, and processing returns. The other one is the monthly storage fees that covers the warehouse storage costs, the computation is based on the size of your product.
There are two pricing plans for FBA.
The FBA Individual and Professional plan fees can range from $2.41 to $4.71+/ unit for standard-sized items and $8.31 to $137.32+/unit for large or oversized items. For storage fees, it can range from 0.69 to $2.40 per cubic foot for standard-sized items and $0.48 to $1.20 per cubic foot for oversized items.
The prices of your fees and storage vary depending on your products and there is no fixed price.
Pros of Fulfillment by Amazon
Fulfillment by Amazon has a lot of benefits for businesses that wanted to make their products well known worldwide.
It provides less work for the business owner as Amazon handles everything and has effortless logistics. You just need to manage your products and keep them in stock. It also has multi-channel fulfillment meaning that Amazon is not the only site where you can sell it, you can use other eCommerce platforms or use your own website, through this you will reach a wider audience.
One of the selling points of products from FBA is it can be eligible for free shipping that makes a customer wants to buy it more and Amazon is known for delivering it fast. You won’t need to worry about returns as Amazon will manage it as well as handling customer service when buyers need one. One of the things that business-like about FBA is that it offers unlimited storage for their products.
Cons of Fulfillment by Amazon
If there are benefits ten there are also drawbacks in using Fulfillment by Amazon. Here are a few negatives that might turn you off about the platform.
FBA can cost a lot of money because of its fulfilment and storage fees, this is why you need to pick a product that is profitable. Their storage fees required money especially if your product is on their shelves for 6 months already and fees are quite high.
Amazon may handle all returns, but it will cost you so better be ready for it. They are also strict about products and it needed to be properly entered into their database and labelled. It is difficult to keep track of your inventory that is why you need to keep it updated.
Since Amazon ships worldwide, sales tax can be difficult to handle as there are different rates in every region.
Fulfilment by Amazon allows every business no matter their scale, to let their products be known and be purchased by people around the globe.
It is an all-in-one eCommerce shop that takes advantage of innovations of Amazon. If you want your products to sell and be known, then this is for you. It can be pricey especially if you are just starting your business, but the money that you will gain from investing from it will take you miles and will make your business more successful.
Imagine a business that will do everything for you, you just need to sit back and relax. You will have more time to focus on your business on a deeper level such as marketing and how to make it grow instead of doing the logistic of it that will make you consume more time and energy.
As you may see from the rest of my article there are a lot of good things that come if you partnered with Amazon. Surely, you will get amazing results as you are going to be partners with Amazon which is a well known and trusted brand.
If you're looking to start your own Amazon FBA business? Then check out our Amazing Selling Machine review!