In the digital world, Amazon has become the world’s greatest marketplace. If you’re looking to buy or sell anything online, Amazon is the place to go. The Amazon marketplace is truly unlike any other. In 2018, Amazon made over 258 billion in US retail sales, which accounted for about half of all online retail sales that year.
If you’re looking to jump into the e-commerce pool as a seller, Amazon provides you access to customers worldwide. In 2019, Amazon had 112 million Prime users, and countless others, all looking for a wide range of products. Amazon truly offers it all—that’s why so many online shoppers make it their first (and sometimes only) stop in the e-commerce market.
However, this popularity that makes Amazon so great is also one of its greatest challenges for sellers. In a flooded marketplace with thousands of sellers, how can you stand out? There are many methods to find success selling on Amazon, but one of the most popular is by taking advantage of Amazon’s Fulfillment by Amazon (FBA) program.
With Amazon FBA app, you essentially work with Amazon to improve the overall quality of your e-commerce store. But how does it work and what are the actual benefits of this service? Here, we run briefly through how Amazon’s FBA works and discuss a few benefits you can see from allowing Amazon to manage your shipping and fulfillment.
HOW DOES AMAZON FBA WORK?
Like most Amazon services, FBA is user-friendly and designed to increase efficiency. Jeff Bezos, Amazon’s infamous CEO, once said that “the most important single thing is to focus obsessively on the customer.” With FBA, the customer is you.
Amazon’s FBA is surprisingly simple. For a fee, Amazon essentially handles the shipping and fulfillment part of your business. First, you send your products to Amazon and they store them in one of their many warehouses. When an order is placed, Amazon handles the packaging, shipping, and tracking. Even better, they also manage all the returns and refunds. Amazon FBA takes on many of the most infuriating aspects of selling products online and allows you to breathe a little easier.
FOCUS ON YOUR PRODUCTS
If you’ve decided to become a seller on Amazon, it’s most likely because you believe in and value the products you’re offering. You want to ensure that your store has the highest-quality products at the most competitive products. You also probably have an interest in how marketing and product listings can improve your sales.
With Amazon FBA, you’re afforded the time and energy to focus on all these things and more. When Amazon takes over the shipping, returns, and fulfillment, you get to focus on what you love: your product line. The Amazon FBA partnership let’s both you and Amazon do what you do best.
STORAGE AND SHIPPING
Are you tired of having your house filled with boxes, bubble wrap, and packing tape? Most individual sellers on Amazon must feel this way. Especially as your store and product stock grows, it can be challenging to store your products and all the shipping materials simply.
With Amazon’s FBA, they let you take advantage of the company’s massive infrastructure. Amazon has over 175 fulfillment centers across the world with millions of square footage of storage space. Why cram your home or apartment with boxes and products when Amazon can store (and pack and ship) everything for you? Without a doubt, this is one of the most significant advantages of using Amazon’s FBA service.
Amazon will also handle all the shipping needs of your online store. Even better, Amazon has partnerships with almost every top shipping carrier; therefore, they receive discounts on shipping costs. With Amazon’s FBA, you get to be a part of these savings and services.
Selling products online is one thing—handling customer service needs is an entirely different project. An unfortunate reality of the e-commerce world is that products will be returned (at much higher rates than brick and mortar retail) and customer reviews must be addressed.
Amazon understands how challenging the return process can be, especially on a large scale, which is why their FBA service completely covers all returns, refunds, and customer questions. All that’s left for you will be responding to direct reviews on your products on the customer service end.
Another advantage offered by Amazon’s FBA is direct access to its millions of Prime users. If you’re on Amazon and see products offered only to Prime customers, those are generally FBA sellers. Amazon Prime ensures customers keep coming back with low prices and free two-day shipping.
On average, Prime users also spent twice as much per year than non-Prime users. What does this mean for you? Access to Prime users is access to Amazon’s most valuable, and consistent, shoppers.
PROFITS MADE EASY
At the end of the day, you’re looking to make money from your online store and products. Amazon FBA makes it easy and fast to see the earnings from your sales. While this service does require a fee, Amazon automatically deducts that and then deposits the remaining profits into your bank account every two weeks. How easy is that?
Currently, there are over 2.5 million individual sellers on Amazon. To stand out from the crowd and reach potential customers, you need to do a lot of things: know your market, host a wide selection of products, offer competitive prices, keep up on returns, and rack up good reviews (to name just a few). Amazon FBA makes this all easier and more convenient.
While this service isn’t free, it has led countless individual sellers to increased profits and visibility. By using Amazon’s FBA, you let Amazon handle the shipping and fulfillment for your online store—basically, you let Amazon do what they do best. Amazon’s FBA affords you the time and energy to focus on your listings and products. If you’re interested in growing your e-commerce store, consider giving this fantastic service a try.