The beginner’s guide to Amazon FBA
Have you heard from friends and loved ones about the amazing perks of being an Amazon FBA seller? They probably mentioned the flexible work schedule, lucrative income, and satisfaction that comes with being your own boss.
And they’re right; these are all amazing perks of taking up Fulfillment by Amazon as a hustle.
However, you can’t just jump into this profession. You’ll need to really learn how FBA works to succeed on this platform.
Here’s what you need to know about becoming an FBA seller and some tips to keep in mind as you begin your journey as a businesswoman.
Fulfillment by Amazon (FBA)- how it works
Amazon FBA is a way for business owners to sell products and take advantage of Amazon’s shipping resources and customer management tools. Sharing the obligations for each order with Amazon, a new vendor can use Amazon’s influence to jumpstart their own business.
When you become a FBA seller, you do not work for Amazon; you are the third-party seller. You will determine the merchandise you wish to market, secure a supplier and promote a marketing strategy. If a customer places an order for your product, you will have the product sent from the supplier chosen by you to Amazon, who will store it in one of its “fulfillment” centers.
The benefit of Amazon customer service
One of the biggest perks of becoming an FBA seller is Amazon provides customer service for all its customers, including yours. For a busy mom, we cannot overestimate this benefit alone.
Here’s how it works. Amazon representatives will handle your customers’ concerns, so you can focus on improving your products and managing your store.
For example, let’s say you have Amazon orders pending from customers, which can cause some stress if you see it for longer than an hour. Usually, it will only take around two hours to come out of pending status, but orders can be in pending for up to 21 hours in certain circumstances:
- An issue with the buyer’s credit/debit card.
- The buyer didn’t complete their order.
- One item was out of stock, or the buyer qualified for bulk shipping, preparing all the items.
You can contact the buyer and work something out with Amazon’s customer service. However, if a resolution cannot be reached, Amazon’s customer service will take care of the rest.
Knowing what to sell on Amazon
Not sure what to sell? We recommend starting with a brainstorming session. Put pen to paper and create a list of what you like to do. This list could include hobbies, things you use to get things done, something you would like to have, family activities, and items you see on T.V. like QVC.
A seller who builds a powerful brand is not afraid to specialize, zero in on a target market, and provide products to fulfill the customer’s needs. If you have the right product to build your brand, you will think of more products to go along with it which are closely related.
When you purchase something on Amazon, be sure to check out the “Frequently Bought Together” section at the bottom of the listing for buyer patterns.
Veteran sellers advise staying away from products that weigh heavily. Another piece of advice is not to sell electronics or products with many moving parts because these are more likely to be damaged and lead to bad reviews.
Finding a supplier
You’ll want to find suppliers who can produce the highest quality product at the best price. The largest and most popular network of potential suppliers is Alibaba, a search engine for suppliers where you can find and connect with a manufacturer producing the products you want to sell.
Once you have identified a few potential suppliers, you can email them through Alibaba. Take the time to talk with their team and ask questions. Some critical questions to ask:
- Do you offer samples? How much do they cost, including shipping?
- How long will it take for me to receive samples?
- Can I pay using Paypal?
- Are there any customization options for the product?
- What is the total cost, including shipping?
Just starting out?
If you’re just starting out as an Amazon seller, there’s no denying that you have an exciting yet challenging road ahead of you. However, the more research you do ahead of time, the more successful your store will be.
We recommend downloading the FBA sellers app. It’s a beneficial tool to keep track of your business when you’re on the go.