Amazon FBA Seller – Amazon FBA Seller simply means Fulfilment By Amazon (FBA) and is a service provided by Amazon which enables sellers more flexibility in their selling practices.
As an FBA Seller, you have the burden taken off you because Amazon provides storage, packaging, as well as shipping assistance.
Here, sellers can ship their merchandise to an Amazon fulfillment center, where items are stored in warehouses until they are sold.
Once a customer places an order, Amazon employees physically prepare, package, and ship the product(s) to the customer.
What You Stand to Gain as Amazon FBA Seller
As a seller, you can take advantage of various resources and benefits linked with Amazon as you sign up for Fulfilment By Amazon. They are;
Subsidized Shipping Fees
Since Amazon has a relationship with the shipping companies, sellers who use this service pay less in shipping than if the items were being delivered from an individual’s account.
Sellers can also offer free shipping over a certain amount since products sold via FBA are eligible for Amazon Prime and FREE Super Saver Shipping.
Amazon’s Name is Linked With Your Products
As an FBA Seller, having Amazon’s name associated with your products is a quality guarantee that most buyers will readily appreciate, which makes them readily patronize your products.
FBA orders are processed in a similar way that Amazon handles it’s own merchandise. What this means is that once someone purchases an item, Amazon picks the item for their inventory, packs the same and ships it to the buyer. The seller then has the option of featuring an item on his/her website, and through the Fulfilment By Amazon service.
Amazon can sure handle inventory that is being sold on multiple channels, and not just via the Amazon marketplace.
How Much Do You Have To Pay as an Amazon FBA Seller
Storage Fees, Pick and Pack Fees, and Weight-Handling Fees
You’ll be charged a fee for storage of all items. Also there’s a fee to pick the item, and a weight-based fee when an order ships.
There’s a Global Export, which allows sellers send their inventory all over the globe.
Standard Seller Fees
This is a standard fee every FBA Seller is expected to pay. It is approximately 15-18% of the product price as a seller’s fee when an item is sold. How much you pay, depends largely on the product.
Amazon says it charges 15%, but there are other hidden charges like refunds that are not fully charged back, this increases the overall charge to the seller.
How FBA Works
- The first step is to set up FBA. In case you already have a selling on Amazon account, simply add FBA to your account. If you do not have a selling on Amazon account, create one today.
- Next, create your product listings. Just add your products to the Amazon catalog one at a time, in bulk, or by integrating your inventory-management software using Amazon’s API.
- Then prepare your products. Ensure your products are “e-commerce ready”, this is to ensure that they are safely and securely transported all the way into a customer’s hands.
- Ship your products to Amazon, by creating your shipping plans, engage discounted partner carriers, and ship and track your shipments to Amazon fulfillment centers. Here, you can use Amazon’s online seller tools to help you through the process.
- Next, as customers order your products, Amazon picks, packs, and ships them.
- Amazon also provides customer service support on the products you sell.