Many a time we get questions like how to sell on Amazon? Does Amazon FBA for beginners are profitable or just a myth? People don’t have a comprehensive guide on selling on Amazon FBA. They just came to know about Amazon FBA benefits and chose it as a medium to sell and make a profit. But do you know anything, when done in the right way by using some basic tactics, might prove to be more profitable in the long run. So first let us see why you should consider Amazon marketplace for selling your products.
- You get access to more than 2.5 million shoppers on Amazon marketplace.
- Amazon has 24 years of market trust that means the shoppers trust Amazon sellers more.
- Fulfillment by Amazon, one of the amazing programs of Amazon does all the work for you. You earn while you sleep.
- Your Business is easily scalable – Make your business grow multiple time as you sell on Amazon.
How to Sell on Amazon FBA for Beginners
This is the first time you might have come to know about Amazon FBA. We are here to make you understand the in-depth procedure about Amazon FBA for beginners. In Fulfillment by Amazon program, Amazon does all the hard work.
Step by Step Process:
- You need to send your products to Amazon. The products you will send will not require any packing (what we do while shipping the products). Amazon stores your product in one or more of its fulfillment centers. The fulfillment centers are big warehouses that are managed by experienced employees and robots.
- Your products are sorted and inventoried as per the SKUs. The products are kept extremely safe and taken good care of. And by chance due to some untoward incident, the products get damaged, then Amazon reimburses you the retail price for the product that has been damaged.
- Whenever a customer places an order for your product on Amazon marketplace, the Amazon handles the entire transactions. The process is entirely automated, but you will be notified about the entire transactions by Amazon.
- The next step is that your product would be picked from the shelves of Amazon fulfillment center and packed and then shipped to the customer.
- After your product is received by the customer, Amazon follows up with the buyer and makes sure that the ordered product is fine. If any return case arises, Amazon would take care of the entire thing.
Amazon does all the work, what do I do then? – Detailed knowledge of Amazon FBA for Beginners
Being an Amazon FBA seller, you will have to:
- Pick the Products: You need to decide among which of your products you want to sell on Amazon. Then dispatch it to the fulfillment center.
- Keep stock inventory up to date: Amazon informs you when the inventory goes low. So, you should make sure that the fast selling products are stocked up with you.
- Promote and Advertise: Amazon is full of millions of products on the store. You need to do a little work so that your products are viewed by the targeted audience at the right place and at the right time.
How much will it cost to sell on Amazon FBA?
For some selling on Amazon proved to be reasonable and for some, it ended up as a pricey deal. While working on Amazon FBA, you need to work tactfully. Know the entire scenario like different applicable costs and many more.
Professional and Individual Seller Account
There are two types of Amazon FBA seller accounts: Professional and individual. Individual seller accounts are free, but you need to pay a higher transaction amount. Professional accounts have a monthly subscription fee of $39.99 and have a lower transaction fee. If your business has the possibility of selling more than 40 items a month then the professional account is recommended. But if you want to start with the selling of a few items only, then the individual account is recommended.
Like any other online marketplaces, Amazon also charges fees for the transactions and services. Below are the quick breakups of those fees:
- 15% referral fee is charged by the Amazon as a sale is made for most of the categories.
- Amazon FBA service comes with a standardized fee for handling and shipping the products. The fees you are charged by Amazon FBA is more than compared to the cost you can ship yourself.
- Categories like DVDs and books have additional flat fees.
- Individual seller account doesn’t have a subscription fee but Amazon charges an additional flat fee of $1.00. That is why the professional account is recommended if you are selling more than 40 products per month.
- Long term storage of your products at Amazon Fulfillment centers would cost you more storage fees.
These all sound like you are putting a lot of money. Don’t worry. The fees when calculated overall is very low and cost lower than when you work yourself.
The inventory costs vary depending upon the category and products you choose to sell on Amazon. There are various methods but the private label is recommended as it comes with a moderate upfront investment. So, you try this method and other methods as well so that you can know best on how to sell on Amazon FBA effectively.
Which online marketplace is better to sell on: eBay or Amazon?
Many people have this confusion but don’t exactly get the answer. Here I have listed down the proper answer for your query:
Ebay: Ebay is like the biggest flea market online that covers clients from all over the globe. You set up your product, provide an offer, handle the transactions, pick, pack and ship the products. It’s your 100% responsibility. Here you have to work more and spend more time on other things.
Amazon FBA: In Amazon FBA you just need to dispatch your entire product you are willing to sell. You own a shelf in the fulfillment center of Amazon. You just need to keep a check that it is stocked up every time. Amazon FBA here handles the entire transactions, picking, packing and shipping thus you get time for other more productive work such as the marketing activities.