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Last updated on June 5th, 2023
Written by Mohamed Aden
Amazon FBA, or Fulfillment by Amazon, is one of the most popular and well-known programs on the platform. Why? Because it makes everything easier for a seller! Based on Statista, 53% of paid units were sold by third-party sellers in the second quarter of 2020. It’s no wonder that sellers rave about the FBA program. You may have also heard hundreds of gurus talking about how they made up to $5,000 a day using Amazon FBA. Perhaps you’ve asked yourself how they could earn this much from Amazon FBA, and how to create an Amazon FBA Account.
The answer is simple. Amazon does the hard work for you while you sit back and run your business.
Yes, Amazon FBA is pretty straightforward. All you need to do is source winning products, send them to Amazon, optimize your product listing, advertise your products, and receive your profit.
Are you still not convinced? Don’t worry because we prepared ten reasons why you need to create an Amazon FBA Account.
Amazon FBA handles the picking, packing, and shipping of your orders. When you participate in the FBA program, you don’t have to manage these processes. You won’t even have to hire people to do the same. What you will do is to send your products to Amazon, and they’ll handle the rest. However, you still need to inspect, label, and pack your products from your place to Amazon’s warehouse. If you want a more straightforward process, you can ask your suppliers to ship them to Amazon directly, although one of the drawbacks is you can’t check the items for product quality.
With Amazon FBA, you don’t need to stack your products in your garage or room, nor would you need to rent a space in a warehouse, because Amazon’s warehouse will offer you a space to store your items. It can be difficult on your part when you have to store everything in your home without an organized system. There may be a chance that you will misplace an item or place it on a wrong shelf. Through FBA, Amazon will reduce the chances of misplacing a product.
Amazon FBA doesn’t only provide fulfillment service to your customers, they also deal with customer service and returns. Amazon will handle customer inquiries such as missing packages, updates on shipping, and return requests. They will inspect the returned items, issue refunds, and create a report to replenish inventory. Furthermore, they will reimburse you for damaged or missing items.
Amazon removes the need for you to hire a customer service representative, and they remove the challenging process of fulfilling orders on your part. It can be hard to grow your business while taking care of the orders and customer returns. You may experience delays if you do it on your own, or you can be stuck on the computer for hours answering questions. With Amazon FBA, you can get enough sleep without having to worry about customer questions and returns.
One of the best perks of Amazon FBA is you can get access to Amazon prime members. Did you know that Amazon Prime members spend an average of 1,400 U.S. dollars on the online shopping platform every year, compared to 600 U.S. dollars spending of non-Prime members? Yes! By applying to the Amazon FBA program, you can sell your items to both markets and earn double the sales you used to make. More and more customers are also enrolling under the Amazon Prime membership program because they enjoy the Amazon Free Shipping or Two-Day Shipping Service.
Put yourself in the shopper’s shoes. Will you pick a store that offers you free shipping or one that you have to pay for? Of course, you’ll pick the one that offers free shipping! They can also get tons of discounts. Hence, it’s not a surprise when you see the growing number of Amazon Prime members. So, before you think of backing out from Amazon FBA, think about the sales you can get from the Prime members.
FBA products have a higher chance of winning the Buy Box. Why? Because FBA offers a fast and free delivery service that affects the number of visitors and sales. Customers love free shipping, but they’ll love it even more if you offer them a fast and reliable delivery service. Your customers will likely pick your store to purchase items, and they can invite others to buy from yours than others. These affect your ranking, which can lead to you winning the Buy Box button.
The Buy Box button is the most coveted button on Amazon because it allows customers to quickly purchase a product in just one click, instead of going through all available buying options, customers are led straight to their cart to pay for the item.
With Amazon FBA, you can focus on growing your business rather than spending your time answering customer inquiries, packing orders, and processing reimbursements. Even if you try hiring a team to pick, pack, and ship orders, there are only several packages they can fulfill in a day. Your ability to generate sales will depend on the number of items you fulfill. Plus, their services will be an additional cost on your end.
By using Amazon FBA, you can reduce your expenses and automate the entire process. You’ll be able to fulfill orders faster, thereby increasing sales volume. Although you have some FBA fees to pay each month, the benefits provided will outweigh the expenses. Lastly, you can focus on sourcing new products and growing your brand. Leave the nitty-gritty to Amazon while you work on running ads and launching new listings.
Amazon is the biggest retail company in the world. It is also one of the most powerful companies globally that reported a revenue of $75.5 billion and a net income of $2.5 billion in the first quarter of 2020. Since they have a good reputation, they already have a customer base that you can benefit from. Plus, they will go to great lengths to ensure that everything runs smoothly. Hence, as an Amazon seller, you will directly benefit from this. Their Amazon FBA program will help you -- from safely storing your packages until handling customer needs. But if you were to ask the smartest people in charge, they will tell you that the key to success isn’t in being a genius, but surrounding yourself with them.
Lost, stolen, or damaged products are a big pain on a seller. It affects customer reviews and relationships with customers. One of the neat things about FBA is they’ll be the ones who will take care of lost, damaged, or stolen items. They will coordinate with the customer regarding the item and send them a new one, or they will reimburse the money spent while the customer sends back the damaged item. Hence, you’ll be protected from negative feedback, and your customers will be satisfied with the service.
Amazon’s platform offers a level playing field for both big sellers and new sellers. You can be a new and small-sized business, but if your products rank on the first page of the Amazon search results, customers will buy yours. Plus, small sellers get the same opportunities as the established sellers. You can have the same advantages and benefits of Amazon FBA. Plus, you can start small. You don’t need to offer hundreds of items when you’re just starting. It is better that you start small at first, so you know which products will sell best.
Sellers can sell on Amazon.com from anywhere in the world. Since you don't have to ship directly to customers, you can manage your store even when you’re on the road. Simply send your items to Amazon and they will take care of the shipping and customer service. You can even take a full week off or vacation for a month without worrying about fulfilling customer orders or answering emails.
If you want to start your Amazon FBA business, you can start selling wholesale products. Amazon FBA wholesale is a lucrative opportunity. You can buy products in bulk from another manufacturer, supplier, or distributor and resell them to consumers.
In a nutshell, selling wholesale on Amazon will comprise of these steps:
Selling wholesale on Amazon can provide several advantages. For one, you can sell products by established brands that consumers are already searching for. Second, wholesale is the easiest business model to get up and running. Third, you can focus your time on growing your business and earning profit. Amazon FBA shall help you with the rest.
Selling on Amazon FBA isn’t an option. It’s a must for sellers because it helps you scale your business without worrying over fulfilling your orders. It will also help automate your process and make shipping easier for you and your customers. Aside from Amazon FBA, Seller Interactive will help you run ads and pick winning products. Since Amazon will take care of the fulfillment, it is up to you to look for products, optimize your listing, and run promotions. You need an expert to guide you with these processes. If you need a helping hand, email [email protected].
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