October 24, 2020

Step-By-Step Guide on How Amazon FBA Works in 2019

A few changes and update you need to know about how amazon Prime program known to amazon sellers as Fulfill By Amazon or just simply FBA works.This article contains information about FBA based on data gathered from some of the top Amazon sellers.

With fulfillment by Amazon or FBA you can put one of the most advanced fulfillment networks in the world to work for your business after reading this article you should have a basic understanding of the process including 1. What exactly FBA is
2.How it can benefit you as a seller and…
3.How to get started

Now let’s dig in…
First off, some of you may be wondering what is fulfillment by Amazon

To put it simply: with fulfillment by Amazon, you store your products in Amazon Fulfillment centers and Amazon ship your order and handle customer service and take care of return which then allows you to spend your time growing your business.

That’s not the only reason to get started with that FBA.

Here are a few more. Amazon customers absolutely love free shipping and Fulfill By Amazon otherwise known as FBA gives you a cost-effective an easy way to offer free shipping on your products.

When you use FBA you can sell more on holidays such as Cyber Monday, Black Fridays, Christmas and more.

Take for instance on Cyber Monday in 2015 customers ordered 23 million items from FBA.

Through FBA your products may be included an Innovative new programs such as same-day delivery which is now offered to Prime members in 1000 cities across 27 metro area.

How about a few more stops… from 2015 more than twice as many items shipped with Amazon Prime then with free shipping over 80% of the total physical units sold during the holiday season we’re from Amazon sellers.

The number of active FBA sellers worldwide grew 15% year-over-year and in the holiday season Amazon recorded over 60% increase in the number of FBI units shipped

So, how does FBA work?

the first step is for you to identify the products and quantities you’d like to fulfill using FBA Fulfill By Amazon. Send them to Amazon once Amazon gets your products it wil be received into Amazon fulfillment Network storing them in the Amazon Fulfillment centers and making them available to Amazon customers as orders come through Amazon will pick pack and ship your products on your behalf.

Amazon will also provide customer service for these orders and manage any customer returns.

With FBA managing your day-to-day operations you’ll have more time to focus on other areas of your business and do what is necessary to grow.

Types of Fees charged By FBA

There are three primary types of fees.

  1. Fulfillment fees include order handling pic-n-pac charges and weight handling these puppies can vary based on the size and weight of your product inventory storage fees.
    These are charged monthly and are based on the size of your products.

Amazon uses the product Dimensions to calculate the volume of the product and that is applied to the storage rate to determine your fees.
You are only charged for the actual space used and you can see this pro-rated charge if Amazon holds your products for less than a full month before shipping out.
Amazon also offers a variety of optional services including: preparing or labeling your products and removing or disposing of inventory.

Once you sign into your SELLER CENTRAL account you will see FBA preview a when you click on the drop-down that will give you a detailed breakdown of the fees you can also click on the bottom of the window to generate a report for all of your FBA items.

FBA Revenue calculator is a great tool for understanding FBA fees as you can search for your specific item or similar items being sold on Amazon once you enter cost information for fulfilling the item on your own. Then you can compare with what it would cost through FBA and there you have it an overview what is and how it works.

In the next article next will dive into how to get started with FBA including registration and converting your product

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