FBA is the fulfillment by Amazon program that companies use every day to sell their products. This is a very easy for someone to sell on Amazon, and it allows companies to save money on shipping. The FBA program helps some companies get started on Amazon, and it helps others that do not have the warehouse capacity to manage large shipments. Read more about how to use the FBA when a business is selling its products through Amazon.
1. How To Use FBA
FBA is used by companies that want to sell their products on Amazon without handling shipping. This is usually done by companies that have retail relationships with other firms. They sell in stores every day, but they do not want to have a full online sales site. They allow Amazon to take large shipments of their products, and the FBA team will ship the products when they are sold. The company makes a wholesale profit just as they would otherwise, and their customers get good shipping prices because Amazon keeps the price down.
2. FBA Is Listed On The Site
Items that are fulfilled by Amazon are listed on the site under the product name and description. The FBA listing shows that the company has the product on-hand, and it explains when the product can be shipped. Amazon can give people more specific dates for their deliveries because these products are in the FBA program. Someone who does not use FBA cannot promise shipment dates on the site.
3. Who Needs FBA?
The fulfillment by Amazon program works for any company that cannot afford to send their own shipments. A small business could sell their products to Amazon upfront, and they will send those items to Amazon. Amazon markets and sells these products on behalf of the company, and they handle shipment from one of their warehouses. You could use the FBA program if you make custom items, or you could use this program when you have a large number of things to sell that you cannot store in your own home or office.
4. How Much Does This Program Cost?
The program does not cost much money for the business that uses it. The program allows the business owner to unload these items on Amazon, and the program does not charge the business for a listing. Amazing puts the “fulfilled by Amazon” label on the product, and they handle shipping as normal. If the customer wants to take Prime shipping, they can get that because the shipment comes from one of Amazon’s facilities.
5. The Drawbacks
Some people might think that a product is actually sold by Amazon and belongs to Amazon when it is fulfilled by Amazon. The name of the company that sells these products is very small when reading the product listing, and that might not lead to any visibility or publicity for the company. Amazon will effectively get the credit for making and selling that item. Plus, Amazon will be the company listed on the shipping label if the customer keeps the box.
6. Streamlining Work
A company that needs to streamline the work that it does should use the FBA program. These companies send all their items to Amazon, and they get a payment for each item sold. This is a much faster way to make money, and it helps the company keep working on the core of their business. This is especially important when the company does not have enough employees to fulfill all the orders that would be placed.
7. No eCommerce Overhead
A company that wants to sell products online should not be forced to spend all their money on overhead for an eCommerce system. This is vitally important because these companies have no desire to spend thousands of dollars to set up a web store, to make that web store look nice, and to establish a shipping relationship with a parcel service. These are all expenses that you cannot afford, and the time that it takes to set up a shipping business could leave you with no time to do anything else. You are allowing Amazon to do all the work because they already have everything set up and ready to go.
The company that wants to use the FBA program should contact Amazon right away. Amazon can get people enrolled in their FBA program, take shipment of all their items, and list these items on their website. Customers buy these products as normal, and they can see on the Amazon website that the product is fulfilled by Amazon. The product is not sold by Amazon, and the name of the company is listed under the item name. If you do not have time to ship your own orders, you should try FBA from Amazon.