Ever since Amazon has been gaining massive popularity because of its amazing online retail performance, and Amazon FBA is no exception.
FBA has become one of the world’s most popular way of earning money through online selling. As a matter of fact, there are more than 2 million sellers on Amazon FBA in the entire world and is anticipated to double for the next couple of years!
As a seller, if you become a part of FBA, you can automate and leverage your business through Amazon’s various features. You will have the opportunity to take advantage of its advanced shipping services as well as earning more profit. Especially, since Amazon has a lot of Prime members.
Now that sounds like a great deal, isn’t it? To further understand how FBA or Fulfillment by Amazon really works, read along and get to know some amazing facts that might help you with your online selling business.
FBA — What is it?
Basically, the whole idea becomes a reality because Amazon allows third-party vendors to do business transactions on their platform.
To be more specific — FBA, which stands for Fulfillment by Amazon, is an e-commerce service in which third-party vendors store goods in Amazon’s warehouses. After Amazon will then select, pack, and ship the products, and will manage customer returns and refunds issue.
Moreover, Amazon FBA provides exact fulfillment services to the third-party vendors as what they use for their own products and sales. Now, that is fair enough.
How Does Amazon FBA Work?
FBA process can be a bit complicated, especially for new sellers. But, once you get the hang of it, it’s definitely simple. Here’s a step-by-step guide on how the FBA program really works:
- You, as the seller, will look for products you want to sell on Amazon’s platform.
- You will create a list for these products on Amazon. Take note that at this stage, your products are not available for sale yet).
If you’re new to the entire selling process on Amazon, then the very first step you need to do is to register as a seller on Amazon Seller account. After you are done, on the Seller account, choose the “Fulfillment by Amazon” option.
Then you can start listing your products. Once done, you will be guided automatically through the entire shipping process.
- Once you have listed the products on Amazon’s platform, you will then prepare the products for delivery to Amazon’s fulfillment centers of warehouses.
You can simply follow the step by step shipping guidelines on how to send your products to the Amazon warehouses or fulfillment centers. You can choose your own carrier for the shipment of your products to the warehouse.
- Your products will be shipped to Amazon’s fulfillment centers. After sending all your products, Amazon will receive them and further scan your inventory. This will be done at the fulfillment center then store the products after.
All your products are kept with their inventory at the fulfillment centers, and this is under the FBA program. All products will be trackable, and sometimes, Amazon may transfer some of the products to other fulfillment centers if needed.
This is for them to ship the orders faster which is ideally good for both you and Amazon. But, the best part is, you no longer have to worry since all of these will be done by Amazon.
- Once your products are already in the warehouse, Amazon will unbox the products and manages them. Amazon is not against uploading products to different websites. You will then have to wait for products to be on sale.
- Later on, your products will be for sale on Amazon’s web page. Moreover, part of the FBA program is to have your products repackaged to Amazon so that they will be shipped to customers for you.
This is where you are required for a freight forwarder, such as fbabee forwarder. Especially if there are products you will be importing and these are from China. There are strict freight forwarder rules that need to be adhered set by Amazon. It will also provide you with the most reliable and cheapest solution.
- Potential consumers will then order your product. In the event a customer is placing an order on Amazon and you registered for their fulfillment program, the product will be processed right away in the FBA system.
In case the orders are not placed directly on Amazon, you will have to forward the items to them. This is done by filling a fulfillment order form.
- After customers place an order, Amazon is now ready to ship your product to them. This is the final step of the overall process. Amazon will pick up the product from the fulfillment centers and packs it securely with proper labels for shipping.
The product will then be sent to the purchasers. In case the order is placed directly via Amazon, then they will handle any shipment and customer issues for you. Fulfillment by Amazon is not just a typical fulfillment program. It is the best, so far, in the industry.
That is the complete step-by-step guide on how Amazon FBA actually works. For beginners, this is great for you. You will now have an idea of how and when to start as well as what products to start with. FBA is an opportunity you should not miss. It is something that will surely leverage your business and will help increase your brand’s recognition online.