FBA Cheat Sheet To Understand Selling On Amazon FBA Better- Part 1

Amazon FBA | 0 comments

Amazon FBA offers incredible opportunities for eCommerce businesses or aspiring Entrepreneurs.

It has a huge customer base to offer and many other tools needed for any third-party sellers to create their own brand and scale.

Here you are going to find your own Amazon FBA cheat sheet that will help you to understand Amazon selling business better.

Starting With The Basics

What is Amazon FBA

FBA or fulfillment by Amazon is a platform provided by Amazon to third party sellers with services including storing, packing, and shipping the orders to the customers.

Amazon FBA provides each seller to store their inventory in Amazon’s warehouses. Whenever an order is placed, Amazon handles them. It packs the product and ships to the customer’s door on behalf of the seller. Amazon will also take care of customer service even handling the returns.

How Amazon FBA Works?

Here are the steps to understand how Amazon FBA works:

  1. First of all, you send your products to Amazon warehouses to store them until orders are placed. These warehouses are either manually or electronically operated.
  2. Then, your products are added to amazon inventories. By chance, if any products are damaged during the warehousing process, Amazon reimburses it to you at retail price.
  3. Amazon handles all your transactions like receiving orders from your customers, complaints, and refunds. The entire process of the amazon is automated and you are not involved in any of such activities.
  4. Next, your product is picked from the warehouse, packed properly, and shipped to the customers’ address. All the things are done by amazon on your behalf.
  5. After the product reaches the customer, amazon makes sure the product is in good condition. All the after-sale services are also taken care of by Amazon. Product reviews, feedback, and return and refund of the goods in case of defective products are some of the after-sale services handled by Amazon.

FBA Cheat Sheet To Understand Selling On Amazon FBA Better- Part 1

Why Amazon FBA?

Here are the reasons why you should consider Amazon FBA:

Painless Logistics and Shipping

For an individual entrepreneur and new businesses, Amazon FBA provides a great way to painless logistics and shipping. It is going to save a lot of time which you can put to scale the business.

World-class Customer Service

Amazon is popular for its world-class customer service. With the FBA option, you can leverage Amazon to provide customer service to your customers.

Unlimited Storage Space

Amazon has multiple warehouses all over the world. You can send your products to these warehouses without any minimum number of orders required. So you don’t have to worry about inventory.

Quick Delivery and Free Shipping

Whenever an order is placed Amazon handles every order quickly and efficiently. For prime members, Amazon offers same-day or two-day delivery.

What To Sell on Amazon?

If you already have an eCommerce business for which you want to widen the reach, you can just start by signing up on Amazon FBA, and create your product listing.

But if you are an aspiring entrepreneur then you need to go through a process of product research.

The key to a successful Amazon FBA business is finding the perfect product.

Here are the characteristics of a good product to sell on Amazon FBA:

  • The product should be in the price range of $18 and $50.
  • Products should be small in size and lightweight.
  • Avoid complicated products that contain glass or can create problems while shipping.
  • Avoid seasonal products, go for products that have demanded all year round.
  • Find products that have a huge profit margin and low competition

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