Leveraging Amazon FBA for sales success

Many online ecommerce businesses increase their profits by leveraging fulfillment with amazon. FBA is great way for online sellers to find their niche in online sales on the amazon marketplace. Amazon works with third-party sellers. About half of sales of amazon come from third party sellers and among them 2/3 are FBA origin. Currently, more than two million people around the world are doing FBA.

Here are all the things you should know about FBA to take a start for your business

What is Amazon FBA and how it evolved?

FBA; fulfillment by amazon is a service provided by amazon for third party sellers to manage their online order fulfillment and also shipping services in simple words sellers sell amazon ships. Amazon enrolled FBA sellers, let amazon to handle all order related tasks as shipping, returns and refunds. Amazon FBA also includes warehousing facilities such as picking packing and other prep services.

Sellers just have to send their products to amazon warehouse, amazon processes orders as they come in with necessary services. As long as you handle sales try to ensure and restock enough product quantity in amazon stock and rest is done for you.

But these services are not free of cost off course you have to pay a cost to amazon.

So, what do you get for the money?

  • 24/7 amazon services
  • All fulfillment and shipping along prep services
  • Access to worlds most dynamic network of sales and fulfillment

Amazon is a great online platform for online sales and retail business and the ongoing pandemic effects and take its business to high end skies with almost 300 million active customer accounts all around the globe. For instance, FBA might not be ideal for low-value items, large dimension productsand other conditions. While it offers a lot, it’s not a guaranteed solution for every seller.

The Evolution of Amazon FBA

Amazon started its ground breaking FBA program in 2006. This company was trying to pave new ways for online retail business for years. So, amazon decides and tried to facilitate small businesses through its FBA services. By enrolling to this program sellers could leverage amazon’s vast network of pick, pack and ship to their customer’s order with a predictable fee no matter where the item was shipped to.

Why amazon introduced FBA program?

Amazon wanted to share its business model to let third party sellers know how they can profit big by doing things the “amazon way”. Amazon still changing and evolving its model to meet the needs of consumers landscape and also online retail business. These changes and upgradation are a blessing and also a curse as its easy to stay updated with trends and market demands but its also hard to keep up constant changes, update to the process, the guidelines and other aspects.

Modifications and new features of amazon FBA

Amazon constantly changing and adapting to meet the needs of sellers and market place. These modifications help brands meet consumer demand and rock their own game with FBA. In 2020 amazon added comingling inventory which is permitted if amazon barcodes are being used. Comingling is when amazon stores every unit of a single item together, regardless ofseller, and ships any one of these to a buyer. It’s also called sticker less inventory. 

Another change made in August 2020 is performance index, which measures a couple of elements to determine how your inventory is going and help youto improveit by getting rid of excess inventory, improving your sell-through rate, and more. 

What amazon FBA costs?

In storage, items are charged based on size and weight.it means selling low-dollar items through FBA could cost more than it’s worth. Sellers have to pay storage and fulfillment fee with amazon FBA program. Amazon’s cost goes up for items that are stored for longer than 180 days. In peak holiday season amazon costs more storage fees to warehouse your inventory. There are few more things and factors involved in pricing but amazon does well to provide information and ensures transparency.

Amazon FBA in a nut shell

Leveraging the power amazon FBA allows sellers to get so much more out of your online sales by choosing right and profitable products. Fulfillment by amazon program offers sellers the best in everything with faire pricing. However, it may not work for all brands and products due to limitation of FBA program and fee structure. Before taking next step take a tour of FBA platform and try out calculator to get an idea of how you could improve your profits by going this way.