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How to Sell on Amazon FBA for Beginners

Amazon
In: Business

Selling products online is a great way to start a business and make money. And if you’re going to sell anywhere, it should be on Amazon FBA.

The Amazon market is massive, it’s growing more than ever as people shift to shopping online for almost any type of product.

Here are a few stats that will make you realize just how big the Amazon FBA market is:

55% of U.S. consumers say that if they were only able to buy products from a single store, it would be Amazon

more than 121 million Americans are Amazon Prime members

Amazon FBA was responsible for 47% of U.S. ecommerce spending in 2020

If you’ve ever thought about selling on Amazon, the Fulfillment-by-Amazon FBA program is a great way to get started. It’s also a great option for any existing Amazon sellers who want to automate their business.

With FBA, you simply send your products directly to Amazon’s warehouses. Amazon FBA then stores the inventory, and when you get an order, Amazon ships your product to the customer.

The beauty of this is that it allows you to sell on Amazon FBA without having to deal with fulfillment and shipping yourself.

If you find the right product and commit some time and effort to caring for your business, you can make tens or hundreds of thousands of dollars per year by selling on Amazon.

There are many advantages to using FBA:

Shipping speed: Orders are fulfilled quickly. You get two-day shipping at no extra cost.

Flexibility: You can send just a few items or hundreds of items at once.

Trust: A large majority of shoppers trust products that are eligible for Prime shipping more than those that aren’t. This means your products will be more appealing and are likely to sell faster than those that don’t offer Prime shipping.

GTIN Exemption: Apply for a GTIN Exemption on Amazon

How to sell on Amazon FBA: The basics

Amazon is one of the most popular online marketplaces in the world, with over 80 million unique monthly visitors. Amazon is a great place to sell your products and reach a large audience.

The Amazon marketplace is huge, and it can be difficult to stand out from the competition. However, Amazon also offers sellers many tools to help them succeed. One of these tools is Fulfillment By Amazon, or FBA.

Fulfillment By Amazon (FBA) service offered by Amazon that provides storage, packaging, and shipping assistance to sellers.

Amazon FBA allows sellers to ship their products to an Amazon fulfillment center, where items stored until sold.

Amazon FBA can help sellers scale their businesses and reach more customers.

What Is Fulfillment by Amazon?

There are two main ways to sell on Amazon: Amazon Seller and Fulfillment by Amazon (FBA).

When you sell on the marketplace using the Seller platform, you’re responsible for storing inventory, packing and shipping orders when they come in, and providing customer service and returns processing.

When you use Fulfillment by Amazon (FBA), you send your products to an Amazon warehouse.

Different FBA Models

There are mainly four models of FBA: Private label, Wholesale, Reselling/Arbitrage and Dropshipping. The most popular one is the private label.

Private Label: The most popular and profitable of all FBA models. It involves selling products that manufactured by third parties (suppliers) as your own brand.

Wholesale: You resell products made by other manufacturers without applying your brand to them.

Reselling/Arbitrage: This model is about purchasing products from a source and sending them to Amazon’s warehouse for selling. The products might come from wholesalers, retailers or even other online marketplaces like eBay or Alibaba.

Dropshipping: In this model, you sell products that you do not own or manufacture. Once a sale is made, the seller orders the product from a third party and has it shipped directly to the customer.

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