The idea of establishing a business on Amazon can be quite daunting for someone who has had minimal experience of online entrepreneurship. Before you put yourself out there, you must know a few things about the forum that will help you to craft better strategies.
- Currently, Amazon has 2.5 billion monthly shoppers
- Amazon recently completed its 24 years in the industry
- Amazon FBA handles all the tedious work of packing and shipping for you
- There is no size limit for you to reach on Amazon
Amazon is a huge market. It is natural to feel optimistic about creating a channel on Amazon. Many people want to sell and sell big on Amazon. However, anyone aiming to ride the high tide on Amazon must know certain aspects of it.
One of these aspects is Fulfillment by Amazon (FBA). It is very important to understand the working of Amazon FBA to acquire success.
What is Amazon FBA?
Fulfillment by Amazon (FBA) takes away the hassle of packing and shipping from the seller. Through Amazon FBA, you can leverage the robust distribution and customer network of Amazon. It is an Amazon warehouse that facilitates you by storing your goods and supplying them to the customers upon receiving the orders. It also provides customer services after delivery.
While Amazon takes care of storing, packaging, delivery, and feedback, you can focus on the meaningful tasks life research, development, and advertisements.
How does it work?
- For starters, you must send your product to Amazon, and they will store it in their fulfilment centres. These are massive warehouses operated by diligent Amazon employees and robotics.
- They design an inventory and sort your products. (In case, the product is damaged during the process, Amazon will reimburse you for it with no questions asked)
- Upon receiving an order, Amazon handles the transaction for the seller.
- They take your product, pack it up, and send it to the customer.
- When the customer has received the order, Amazon follows up and asks if they had any issues. It also remedies the problem if it is possible.
The Seller Duties
There are a few tasks that a seller has to handle too. These include:
Finding a product to sell on Amazon FBA is not as easy as you may think. You need to find a product with low-cost and high profit-margin. Going for a product that is high in demand sounds plausible, but sometimes, your product may not perform as well as others.
So, take a thorough glance at your product line. Pick the ones with minimal competition. Make sure that your product can outrun all the competitors who are selling similar products.
Create a Product Listing
Your product listing is the gateway to achieve a high number of Amazon sales. You must create product listings that are incredible and persuasive. It must contain high-quality images, bullet points about the qualities of your products, and detailed product descriptions.
The only way you can make a profit off selling a product that is being sold by hundreds of other vendors is, ‘if you are smart in presenting your product.’ You must make sure that your product in the listing stands out on Amazon.
Prepare your products
There is a procedure you must follow when you are shipping your goods to the fulfilment centre. Make sure the packaging is secure, and product labelling is correct. You should check the packaging and prep requirements on the Amazon website to know the criterion.
Ship your products
Design an efficient shipping plan. In this step, you have to print the shipment labels and send your packages to the fulfilment centre. To know more about this, you can check ‘send FBA Inventory to Amazon’ on the website.
Promote your product
Given that you are competing against some well-established entities from across the globe, you cannot expect cash rolling the next day. Promotion is a must when treading onto Amazon. You have to expand the scope of developments beyond Amazon.
Use Google Ads and Facebook pages to attract an audience on your channel. Keep tracking the progress of your marketing campaign and match it against the set goals to know if your ads are getting you sales.
What are the benefits of Amazon FBA?
If you ask a vendor about what they think is the worst part of selling online, they will be unanimous in their answer. It will be ‘logistics of fulfilling orders, shipping, and customer service.’ It consumes a large part of their capital and human resources.
By using the services of Amazon FBA, you will be transferring the weight of these cumbersome tasks on the able shoulder of Amazon. Also, the fact that Amazon takes care of the inventory makes it possible for you to focus on production and promotion. You can focus on growth rather than chasing the orders.
A few extra tips
Besides the physical working and tangible elements of selling on Amazon FBA, it is equally important to outperform your competitors. It includes your passion to work, your ability to craft enticing offers, and strategies to improve the best-seller ranking.
It is not wrong to state that your success on Amazon FBA depends on your efforts, time, and money. It is an incredible platform to take advantage of. By following the required protocols, you will make high scores against your competitors.