What is Amazon FBA anyways?

We know, you’ve probably been searching all over the internet trying to find out how to sell products on Amazon. It does seem to be all the rage lately, from success stories to courses left, right and center, on how to utilize Amazon selling, and create financial independence! Yes let’s get started!

Amazon created something called Fulfillment By Amazon which works a lot like eBay, but in my opinion, is MUCH better.

For a while, eBay was the only place to sell things online. eBay is great, but it requires a lot of work on your part: sourcing, listing, shipping, customer support, etc.

If you plan to sell to online, then you should strongly consider Amazon’s fulfillment program called FBA. FBA stands for “Fulfillment By Amazon” which makes it a fulfillment company. A fulfillment company provides storage and shipping services for their clients’ products. FBA is unique because Amazon is also the marketplace for those items, so they have an active interest in seeing the items sell. What makes FBA even more extraordinary is that its items are also eligible for Amazon’s shipping promotions including Free Super Saver Shipping and Amazon Prime.

It is important to understand how FBA works and how other businesses are using FBA.
Amazon buyers use Prime, so they get free shipping. They easily spend more for things like spices, coffee, tea, socks, toilet paper, towels, detergent, etc. They spend much more because they TRUST Amazon. This is good for sellers because it means that you will make more and sell more.
Amazon is a master of internet commerce and has set the bar very high for their customers, vendors, and owners. Customer service is critical for them, and we are tapping into this using Fulfillment by Amazon. You as the product seller no longer have to deal with the customer service after the sale. You simply keep sending more products to Amazon and they take care of the rest.

This article will only cover only setting up your Amazon account for FBA. We will go more into sending your products to Amazon, storing and shipping your products at Amazon, and managing your FBA inventory in upcoming articles.

1. Open an Amazon Account
If you have never purchased nor sold on Amazon and do not have an account, simply go to the Amazon website and click on the Selling on Amazon link at the bottom of any page.

2. Set Up Your Amazon Account
Once you have an Amazon selling account, contact the Amazon customer service department to set up your account for FBA. Having an actual FBA rep on your account will help you with any issues in the future. The rep will walk you through your first shipment.

So if you get this far, you have done your initial due diligence, and you have an FBA account.
How to make money using FBA.

The first way is called merchant fulfilled. You list your merchandise on Amazon’s website, but you fulfill or ship the orders yourself. Merchant fulfilled may be the easiest way and least costly to get started, but it is a lot more work. You list your products on Amazon’s site. When the products are bought, you are responsible for actually shipping the products to the buyer. You can even sell things that you have around the house using this method.

You can also earn through FBA by selling other people’s products. In this case, you go to the store and find things that are already selling on Amazon, purchase them, put your unique UPC label on the product, pack it, create the listing, ship it to an Amazon warehouse and wait for the buyer. There are smart phone apps that you can use to scan products before you buy them to help you determine if you can make a profit. If you like to shop, are good at finding bargains and can ship a box, then this may be the business for you. The other great thing about using FBA is that your products are eligible for the Amazon Prime program. People who participate in this can get free two-day shipping. Many people are willing to pay a little more for a product for this convenience.

The second way to earn using FBA program is to sell your products. You find a product that you can sell, find a private label manufacturer, create your brand and sell you product. This is the most lucrative of the ways to sell on Amazon; however, it requires more capital up front. Also, it is riskier because you have to order inventory.

As you can see selling on Amazon is something that you can do to earn extra income or become your full-time business. If you are looking to start an online business or you want to add an income stream to your existing online business, then you should consider FBA.

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