Are you into the business of selling products through Amazon? Do you need a service that handles picking, receiving and packaging of your products before shipping to your customers? Well Fulfillment By Amazon is here for you. This is an Amazon based storage and shipping service that helps business owners to do the afore mentioned things. FBA also does things like handling post sales processes like refunds, returns and 24/7 customer service.
In the course of this article, I would be delving into a complete Guide to Fulfillment by Amazon. Most importantly, we would look at Amazon FBA Tools, FBA pricing and how to get started with FBA. Without much mouthing, let us delve in.
How Fulfillment By Amazon Works ?
Amazon FBA is service that pretty much stands as an intermediate sells and delivery funnel that handles order and shipment processes for users. When a customer logs on to Amazon or your own personal ecommerce site and orders for a product, Fulfillment by Amazon would receive the order and ship the product to the customer within two business days.
With this premium Amazon logistics handling service, you would ship your products to a storage warehouse known as “Amazon Fulfillment Service” via a shipping pallet or a freight forwarding company from the product supplier.
Storing your products at an Amazon Fulfillment center comes with a cost. This depends largely on the seasons wherewith your seasons are at the warehouse.
Fulfillment by Amazon should be your best pick if you are into products that are small and pricey. The reason for this is that it costs a lot to ship bigger products via FBA. In fact, it would be noteworthy to say that FBA fees are grossly determined by the size of products in storage. FBA can also be a good pick for companies that sell small items at higher retail prices.
The processes of Amazon’s FBA
#1. You send your products to Amazon, so that they can be stored in their fulfillment centers.
#2. After the product is received by Amazon, you can then monitor it with the aid of the Amazon inventory tracking system
#3. Then, an online customer would place an order for your product from Amazon or another Ecommerce website where you sell your own product.
#4. Amazon FBA, whose primary job is to maintain delivery logistics would receive the order and package it.
#5. Amazon FBA would then ship the product that was ordered for, to the customer, and then, provide the customer with tracking information.
#6. Lastly, Amazon would provide customer service and then return management data for items delivered or returned by your customers.
It would be important to iterate that Amazon FBA is not only meant for orders that are placed on https://www.amazon.com but also is available for orders that are available in your own company’s Ecommerce platform.
Who is Fulfillment By Amazon For?
Amazon Fulfillment By Amazon is a service that best suites Amazon sellers who do not have room for inventory management, storage and customer service. Here a couple of businesses that would benefit from Amazon Fulfillment service.
#1. Ecommerce Stores
If you own an ecommerce store but do not have the capital to set product delivery logistics, you can opt for the Amazon FBA. Plus you can get more customers to your Ecommerce store by leveraging the brand name of Amazon.
As a start up, it would take you ample time to fine tune your profit spreads and product offerings. The rules for selling on Amazon can change quickly and you would need time to change your procedures and processes accordingly.
With the Fulfillment by Amazon, you can make a lot of money and learn the best approach for navigating a rapidly changing ecommerce marketplace.
How Much Does Fulfillment By Amazon Cost?
Fulfillment by Amazon is a service that is worth spending on, and in subsequent paragraphs, we would be looking at the monthly fees that the service incurs, shipping costs and storage fees. Always Endeavour to research your profit level and see to it that is matches your FBA expenses.
Highlighting Fulfillment By Amazon Costs
Here is an overview of some FBA costs.
- Monthly FBA Fees: As a professional seller, your FBA account would cost you $39.99 on a monthly basis. Amazon sellers that sell individually do not pay a monthly fee, instead they pay 99 cents per items sold and a selling fee that ranges from 45 cents to $1.35 per unit.
- Amazon Fulfillment Fees: There are costs that are incurred for putting the products of sellers in a shelf, ship it and maintain customer service. This logistics is not free, and comes at the cost of $2.41 per unit and can increase to $137.32 or items that are large in size.
- Stock Removal Fee: Another special fee that is incurred by Amazon is the stock removal free with costs up to 5 cents per product unit. This fee is charged in scenarios when you want to pull inventory from Amazon or do away with stock that has not been sold for a period of time.
- Labeling Fee: Amazon has very strict specifications to indicate a barcode label on any product that they are shipping from their Fulfillment center to your customers. In fact, there is a labeling fee of 20 cents per product unit.
- FBA Prep Service and FBA Unplanned Prep Service: In addition to strict barcode labeling, FBA has strict guidelines on Packaging and product prep. However, according to their guidelines, you must never send products that are not prepared properly as you would end up incurring an unplanned pre free, which starts from $1.00 to $2.20 per unplanned product unit.
- Returns Processing Fee: For some product categories, processing products returned by customers is free of charge. In addition, processing returns for some categories of products comes at a cost. For cost-oriented returns, Amazon would charge a processing fee that is equal to the original fulfillment fee. If the products that was returned by your customer needs to be repackaged, Amazon would charge a repackaging fee.
- FBA Storage Fees: It costs from around 48 cents to $2.40 per cubic foot of space to store your products in Amazons Fulfillment center. This storage space has seasonal variations and pricing for products can differ in size.
- Long-Term Storage Fees: when you hold your products in an Amazon inventory for more than a year, as a seller, you would incur a long-term storage fee. This fee usually costs $6.90 per cubic foot or 15 cents per unit. ]
- FBA Shipping Fees: Fulfillment by FBA Fees includes shipping costs to your customer. Amazon has a couple of carrier companies that move products for them. With the use of Amazon FBA, your customers would get their orders at least within duration of two working days with the use of Amazon prime shipping. Buyers also experience quality customer service that is done by Amazon staff, because they are only dealing with Amazon.
How to Get Started With Amazon FBA
In other to kick off the Fulfillment by Amazon program, you would need to integrate your Amazon sellers account with FBA. From then on, you can send Amazon your products so that they can fulfill orders and handle inquiries sent by customers.
Here is a highlight on how to get started with Amazon FBA
#1. Set Up Your FBA Account
It is easier to set up FBA if you already have a selling on Amazon account. If not, you would need to start setting up your Selling on Amazon account with a few more steps.
#2. Create Your Product Listing
There are a lot of ways to create a product listing with either your Amazon Seller account or with a third party tool. You have to set them up in bulk one at a time or with the aid of a third party software.
#3. Prepare Your Products
Fulfillment by Amazon sellers need to make sure that they comply with the Amazon selling processes. You can use a third party service like ShipBob to maintain compliance.
#4. Ship Your Products to Amazon
Fourth on the list, is for the Amazon seller to send their products to an Amazon warehouse or to have third party delivery logistics put in place. Once again, a company like ShipBob is another great option for managing third party delivery logistics.
Amazon and ShipBob have negotiated discounts with companies that offer shipping carriers.
Fulfillment by Amazon is a great service that can help a seller that sells on or off Amazon to make a lot of money. Making money is not the only benefit of FBA, as there are other advantages like scalability, having your delivery logistics taken care off hands off.
It is super easy to get started with Fulfillment by Amazon and start having your products shipped to the Fulfillment center waiting for online orders from your customers.