How Fulfillment By Amazon Works | All You Need to Know | Amazon FBA

Amazon gets an unstoppable rise along with Amazon FBA. Amazon growth increasing exponentially by 20% year-on-year. Here this online giant revenue is high from the all-time record and it hits nearly $170 billion in year 2017/18.

Amazon keeps on adding revenue because of its excellent service along with extraordinary services across the word. Now the founder of Amazon Jeff Bezos is the world’s 3rd richest people. Depending upon the share price the wealth is near around $80 and $90 billion. Now let’s stick to the topic Amazon FBA and start this article with a positive note.

What is Amazon FBA?

Amazon is not selling most of the products on its site but many products are being sold by people like you and me. This opportunity is there because Amazon allows third-party sellers on to its platform. That is why they are flourishing so well because they are making their marketplace available as a type of place to market and sell products.

Amazon provides the same fulfillment services to these third-party sellers so that they can make the sales directly. You should grab this opportunity and grab this massive opportunity and start the Amazon FBA business.

As Amazon already said that:

“You sell it, we ship it. Amazon has created one of the most advanced fulfillment networks in the world. With Fulfillment by Amazon (FBA), you store your products in Amazon’s fulfillment centers, and we pick, pack, ship, and provide customer service for these products.”

Now, moving on to the next part.

How Amazon FBA Works:

As Amazon FBA stands for “ Fulfilment By Amazon” that means you can now find products you like to sell.

Amazon FBA

Here you can source the product as cheap as possible and earn the profit on Amazon. Here Amazon will handle all the work like storage, shipping along with the customer support.

Amazon FBA Program Step-by-Step:

  • Find the products you want to sell on Amazon
  • List the products on Amazon (the product will not be available for sale)
  • Send the prepared product to one of Amazon’s warehouse
  • You ship or have shipped the product right to the selected Amazons warehouse
  • Amazon will unpack your product and will hold your product
  • Now your product shows up for the sale on Amazon
  • When buyers buy your product, Amazon will take the responsibility and will ship the product to the buyer

Work of an FBA Seller: 

As it is already mentioned that, Amazon is providing the marketing along with sales platform as well as Amazon will look after the storage, fulfillment and the logistics. That’s what you expect from Amazon.

Most important jobs as a third-party seller: 

  • Finding and deciding the best products for selling it on Amazon
  • Sourcing the products along with dealing with the manufacturer or their agent
  • Listing of the products for the sale purpose
  • Promotion process of the products

These steps which are listed above will definitely take your time and effort, you have to make an effort for selling your products on Amazon.

All you need to do is spend some time in researching the best things to sell on Amazon. When you have got some idea, make sure it will beat up the competitor and let you stand out from the crowd along with the proper sale and better product description and photos.

Sourcing of the products on Amazon basically starts with searching on Alibaba,  just to find out there’s manufacturer’s and the suppliers already making that product or not. If you have the guts then just private label the product along with having the cost estimate of private labeling process. And the best thing about Amazon is that-

Once your items get started with Amazon, nearly all the hard work you have done and now it’s time to reap. All you need to monitor and make the adjustment in way of the course.

Key to Success: 

Just draw up an Amazon EBA business plan. Most of the majority will definitely forget to do this. This is important because it will you a head start in the starting. This will definitely help you in achieving a number of things.

You may think that Amazon FBA as a real business, yes you should do that. Just keep one important thing in your mind that you are not just only building an Amazon Business but along with that you are also building your own business that runs and leverage to Amazon.

You should develop these four key strategies:

  • Right product selection strategy
  • Pricing strategy
  • Product sourcing strategy
  • Marketing along with the sales strategy

These mentioned points are really very important in terms FBA. Let’s get on to more details.

Product Selection Strategy: (All about finding the best elements)

All you need to do is be precise in what you want, suppose you want something lightweight. That should be small enough to fit in a box. Just keep such type of things like weight and the size always in your mind. Just note down many ideas as you can, just explore the tons of possibilities as you can.

After creating the list, evaluate the potential product by the given data:

  • Amazon selling price should be in between $20 and $70
  • Amazon bestseller rank between 250 and 7,000
  • Just competing for the products with less than 500 review
  • Competing for the products with low-quality listing

All the provided data will let you pick top 10 product idea to focus on. You should carry on the deep research on your top 10 products ideas along with filtering all the irrelevant factors until and unless you left with the 3 or 4 possibilities.

You should always have the details about managing the cost as you are in Amazon FBA business. Do consider the following points.

  • Manufacturing costs
  • Shipping/Freight
  • Logo/Branding
  • Amazon Fees
  • Discounts

Amazon Fees:

Amazon FBA- Fees

Once you have done with all that, you will have the framework to work within and definitely you will save many endless hours because this guide is especially hand-picked for the newbies.

Benefits of Amazon FBA Program: 

When you will use the Amazon FBA program, your products will automatically get Prime eligible. As Amazon is promoting their Prime Membership heavily, and the people who are the Prime Members they all need not pay extra money for the membership.

Amazon FBA- Benifits

Here Amazon prime members always choose FBA sellers over the merchant fulfilled sellers. They want the item quickly and trust me they don’t want to pay for the shipping when they have already paid for it right in the prime membership. This gives the Amazon FBA members the huge advantage.

The opening of Amazon Seller Account:

Amazon FBA- Create Account

To be an Amazon professional seller is not everyone’s cup of tea. It all depends on the strategy along with the products you are willing to sell. Just go to the following links based on your country:

Just Sign Up Here for the seller account..

  • (United States)
  • (United Kingdom)
  • (Germany)

When you will click on these links given above you will find a very short process of setting up your account. Once you are done with the process you will receive an email, that you will need to reply just to confirm the account.

Now you all ready to sell your product on Amazon.

Maximize the chance of success: 

Yes, should do something different to stand out of the crowd. You can be super successful in the Amazon FBA business just by joining the online courses springing up online.

Here the best online program is Amazing Selling Machine. It’s not cheap but it will definitely teach you how to earn money by selling the products on Amazon. As this produce many successful Amazon sellers.

Just visit the Amazing Selling Machine here..

It’s not only the option available in the market. You can also go with the marketplace SuperHeroes, as it will offer step-by-step Amazon FBA course. Learn one thing here “First you learn then you earn.”

Reasons Why FBA Business Fails: 

It may happen with many of the people who can’t be successful in the Amazon FBA business. The reasons may be more but, here I will try to give the most common reason for getting a failure in the Amazon Affiliate Business.

Here the list of some of the common mistakes made by people:

  • By choosing the wrong product
  • Not able to find the right supplier
  • Miscalculating costs and the projected margins ( you can even use Amazon Calculator)
  • Not fully optimizing product listing
  • Not paying attention to monitoring post launch
  • Just making the process overcomplicating

I hope you might have an overview of Amazon FBA program along with its successful strategies. Don’t just read it, you should go a give it a try.

Also, read:

End Note: Amazon FBA

Now as you have gone through the guide, you can easily start selling products on Amazon as a seller. If you are looking for an online opportunity then this Amazon FBA business may help you in making the good amount of money.

First, you should go and learn from the online resources, then just start with  Amazon FBA. Take someone’s help in finding the best products for selling because your product plays an important role in your success. Go ahead with it, Good Luck!

I hope you liked this guide how Amazon FBA works. Show your love and share this article on all trending social media platform and help others in setting the Amazon FBA Business.

Kashish Babber
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Kashish is a B.Com graduate, who is currently follower her passion to learn and write about SEO and blogging. With every new Google algorithm update she dives in the details. She's always eager to learn and loves to explore every twist and turn of Google's algorithm updates, getting into the nitty-gritty to understand how they work. Her enthusiasm for these topics' can be seen through in her writing, making her insights both informative and engaging for anyone interested in the ever-evolving landscape of search engine optimization and the art of blogging.

Affiliate disclosure: In full transparency – some of the links on our website are affiliate links, if you use them to make a purchase we will earn a commission at no additional cost for you (none whatsoever!).

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