How The FBA Process Work For Sellers


FBA refers to Fulfillment by Amazon. As a business owner or an individual who look forward to selling his/her products through Amazon, having the opportunity to take advantage of Fulfillment by Amazon can be quite useful. The information below is helpful in learning how the FBA process works for sellers.

FBA is a process through which Amazon offers a seller the opportunity to store his/her products in one of their fulfillment centers. When a customer buys a product that you have for sale, Amazon will take care of all the packaging and shipping tasks. In addition, they provide customer service for each product that you are looking to sell. That means that if your buyer has any questions, customer service will handle the issues on your behalf.

With the FBA's assistance, various sellers have enjoyed a significant increase in their sales and overall growth of their businesses. Several sellers let Amazon complete the orders for their products. Usually, the products are shipped directly to the clients by the suppliers selling directly on Amazon. The service is also available to sellers on other websites, for example, eBay and Etsy that have moved to the FBA. It is therefore essential to know how this service which is provided by Amazon has benefited sellers across the globe.

A lot of sellers have experienced a significant increase in their sales volume through the use of this service. Also, clients believe that they are buying from a more reliable company instead of an individual seller.

Another advantage of FBA to sellers is that they can use it to realize many other benefits. For example, using this service as a seller relieves you the hard and expensive task of promoting your product. Furthermore, it will be Amazon's duty to deal with customers and fulfill orders. Consequently, the seller can focus on other tasks like creating new products or any other functions that may increase the size of your business.

One more benefit related to using Amazon FBA is that a seller will have the advantage to enjoy their services for a minimal charge. FBA is a cost-effective solution than opening your warehouse where packing and shipping your products is required, as a seller, you can evade this tedious task of opening your warehouse and also avoid paying outrageous fees. Besides, a business will be able to utilize Amazon's pay as you go policy when you start working with them. Every company is charged depending on the amount of space used in Amazon's store and the number of orders they fulfill for the company.

FBA sellers have to pay the following costs and charges to Amazon for services provided.

1. Monthly Inventory Storage Charges

These fees are charged per cubic foot used to store your goods. The prices apply for oversize and standard-size products. 

2. Long-Term Storage Costs

Long-term storage fees are charged on goods stored in Amazon’s warehouses on a semi-annual basis. 

3. Minimum Long-Term Storage Costs

Minimum long-term fees are charged every month for each item unit stored in Amazon's fulfillment centers for a year or more than a year. 

For a supplier of a product, it is possible to take some days off without worrying about who will take care of your business while you are not available. Your business will keep running even when you and your friends are enjoying time on vacation. Consequently, to stay away from your office for as long as you want is made possible.

A lot of sellers don't like to deal with buyers directly; they find it hard to deal with stress and demanding clients. With FBA, Amazon handles all of these things for you and help you to grow your business.