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If you’re new to Amazon FBA, chances are that you have stumbled across some topics about the program and are wondering if it is worth taking a shot. Well, we can tell you one thing: the process of getting your product in the hands of your customers might look easy. But, in fact, it requires a lot of time and effort.
So instead of going through all this headache, maybe you should start amazon fba as an option. This way, you’ll be able to focus on other important aspects of your business and leave fulfilling orders to the experts.
In this article, we will go over the key benefits of the Fulfillment by amazon program for Newbies. We’ll help you get a better idea if this program is right for your business.
Let’s dive in!
What is the Fulfillment by Amazon (FBA) Program?
Fulfillment by Amazon (FBA) is a program that enables sellers to leverage Amazon’s resources to increase marketplace sales.
It is a program by Amazon where you send your products to one of the fulfillment centers of Amazon and they will store, pack, and ship your products to customers on your behalf.
This program will allow you to take advantage of Amazon’s world-class logistics and distribution network, as well as their trusted brand, to reach more customers with less time and effort on your part.
Who Can Take Advantage of the Fulfillment by Amazon (FBA) Program?
You don’t have to be an established seller with a large number of items in order to qualify for FBA. It is open to any seller who wants the advantages of FBA, including:
Using the FBA Prep Service – Prep includes inspecting, labeling, packaging, shipping, and cleaning each product
Prime Shipping – Get free two-day shipping for your Prime customers. This will increase sales by giving your customers instant gratification.
No Receiving Fees – Instead of paying fees to receive inventory, you now pay a flat monthly fee for receiving
Low-Cost Shipping – You can ship items at a discounted rate because Amazon has negotiated better rates with carriers than individuals could obtain on their own
Amazon Customer Service – Your customers will be able to call Amazon directly if they have any questions or concerns about their orders.
Benefits of FBA Program for Newbies
Fulfillment by Amazon continues to grow at a rapid rate and there are many reasons why sellers are choosing to use FBA.
This is super convenient for a newbie seller on Amazon, because it means you don’t need an office or warehouse and you don’t have to hire anyone. All you need to do is find suppliers and send them your products.
The biggest advantage is that you can use the FBA program as an opportunity to test new product ideas before committing to them yourself. This way, if it turns out that a product is not selling well, you can simply cancel the order without any loss of money.
This also allows you to see which of your ideas are working and which ones aren’t so that you can focus more on those that are working better for you. Below are its notable benefits:
1- Reach more customers and grow your business
The first thing that comes to mind when thinking about the benefits of Amazon FBA is the ability to reach more customers. With more than 300 million active customer accounts, Amazon has buyers all over the world. In addition, with Prime membership on the rise — it increased by 47% in 2021 — businesses that use FBA also benefit from having their products appear in Prime searches. This can lead to an increase in sales, since Prime buyers are known for spending more money on Amazon compared to non-Prime members.
2- Sell internationally with ease
If you choose fulfillment by Amazon (FBA), Amazon will pick, pack, ship, and provide customer service for your products. By using FBA, you can quickly expand your business into international markets without worrying about establishing a foreign distribution infrastructure.
3- Enjoy lower fulfillment costs
Fulfillment by Amazon (FBA) increases your online sales, reduces your fulfillment costs, and gives you fast, free shipping to customers around the world.
4- Speed up your shipping process
When you use FBA, all sellers benefit from Amazon Prime’s free two-day shipping and other perks like free returns on items.
5- Attract more customers with Prime shipping and other perks
Customers can shop with confidence, knowing that their orders are eligible for free shipping and Prime delivery options.
6- Gain access to Amazon customer service teams
FBA items qualify for FREE Shipping and Amazon Prime. It gives customers peace of mind when they buy from you that they’re getting what they expect and that if they have an issue, they can contact Amazon’s customer service.
7- Manage your inventory in one place
One of the greatest benefits of Amazon FBA is that it allows you to manage your inventory from one place. Once you set up your Seller Central account with Amazon, they’ll take care of storing and shipping your products for you. It’s a great option for growing businesses that don’t have the resources to do this themselves.
8- Optimize your listings with greater visibility
Your product listing will be shown with a Prime badge, which helps make it stand out among the competition. Also, since Prime members receive free two-day shipping, they tend to make purchases from other Prime vendors. This means that when someone searches for a product like yours, they’ll be more likely to click on an FBA seller’s listing because they know they’ll get fast shipping
On top of that, your listing will be eligible for free shipping on orders over $35 which is also something that potential customers are taking advantage of.
9- No more storage issues
With the help of Amazon FBA, you don’t have to worry about keeping an inventory full of products that may or may not sell. Instead, you can focus on developing your product line, building your brand, and marketing your products to potential customers.
How To Start Amazon FBA?
When you sign up to sell on Amazon, you’ll be asked to choose between two selling plans: Individual or Professional. Both plans have a monthly subscription fee. The Individual plan has no referral fees on sales you make and allows you to sell in some but not all product categories. The Professional plan has higher monthly fees but also has lower referral fees. It also gives you access to sell in all product categories.
You can sign up for an individual seller account if you’re selling less than 40 items per month and your total sales value is less than $2 999 within a calendar year; otherwise, sign up for a professional seller account.
Ideally, FBA can be a great way to get started. You just need to leverage the program and hit the ground running. The sooner you can start offering your products to Amazon customers, the sooner you can start earning money with your online store!
