How to Start Amazon FBA Business – Fees & Plan

Amazon FBA Business is one of the eCommerce platforms where you can become an online seller. This platform will earn you a lot of revenue if you are consistent with it. Amazon FBA Business

This article is going to explain in more detail what you need to know about this topic and how to start up a business on this platform.

Amazon FBA Business

When thinking about e-commerce, Amazon should be one of the topics that come to your mind. Amazon is one of the biggest eCommerce websites in the world today. The e-commerce website also has one of the largest customer bases. With this, it wouldn’t be a bad idea to start selling on this platform. So, what is Amazon FBA Business? Read on to learn more.

What is Amazon FBA Business?

Amazon FBA Business is a business platform owned by Amazon. FBA stands for Fulfillment by Amazon. This is a setup where sellers or businesses choose the products they want to sell and send it to any of the fulfillment centers.

These centers house the products and when customers order your products, Amazon handles the packaging and shipping of the products. Customer service will also be given to your customers and they get returns for orders.

New sellers may also receive welcome offers such as free promotional click-on ads, free shipping to fulfillment centers, free return processing, storage, and lots more. Although, conditions may apply.

How Does Amazon FBA Business Work?

To start up with this platform, you need to create an Amazon Selling account. After this, you add the products to the Amazon catalog. With this, you can do the following:

  • Prepare the products you want to sell. You can also add a brand logo to the product.
  • Locate any of the fulfillment centers close to you and ship your product.

When your products are received, Amazon will handle safely store the product. When an order is made, packages, and distributes the products. Amazon also handles customer service. having known this, the next section of this article will guide you on how you can start selling on this platform.

How to Start Amazon FBA Business

You may be wondering if it’s right to sell your products on Amazon. The answer is yes, this is because, the largest household brands sell on Amazon.  Starting an Amazon FBA Business requires some processes. This section of the article is going to break them down and explain them in detail for better understanding.

Choose Your Product

This is one of the most crucial steps to take when you want to start selling on Amazon. Take your time to do this, as the product determines whether you will do well in the business or not.

Do market research, and explore different supplier options and this will help you come up with a good product. Don’t just pick a product that is in high demand to sell. Building a good brand will help you go far. So, also focus on a good niche and this will help you in the long run.

You can create your products from the scratch. Also, you can buy cheap products and sell them at a higher price. Alternatively, you can look for products that are selling well and rebrand them to sell. Checking for the Best Seller Rank (BSR) of the product you want to sell is also important.

Source Your Product

After picking a product you want to sell, the next step is to source your product. You need to find companies that can offer these products as private labels. The company will be responsible for making the product while you buy it from them at wholesale prices and brand them.

There are websites that specialize in wholesale trading and they also give offer private label products. Some of them include Alibaba.com, GlobalSources.com, DHGate.com, etc. Also, compare the wholesale prices on all the platforms to ensure you have gotten all the prices.  Make sure you get quality products also.

Ship Your Product

After sourcing your products, the next step is to decide on how you are going to send them to any of the fulfillment centers. Depending on the type of product, you can choose to send the product by boat, by air, or by train.

If you are shipping your products from overseas, you may want to do this by boat or by air. You should know that shipping by boat is one of the most preferred methods for FBA business. This ensures the security of your products and helps you save some money.

List Your Products and Use a Good Product Description

Some important details you need to list on your products include the SKU, Product title, Product description, images, and keywords. Using the right keywords can help your products get to more Amazon users when they search for products similar to yours.

The product description is also very important. You should also make use of keyword search engine sites to get the right title to use for your products. Make use of keywords people often use while writing your product description.

Start Advertising

After getting a good product, listing it and writing a good product description. It’s important you look into advertising your product. You can make use of Pay Per Clicks programs. Also, you can advertise on social media platforms. Facebook is one of the best places to market your products. You can customize different advertising campaigns depending on your budget.

Amazon FBA Business Fees

The fees for selling Products on Amazon FBA are based on the size and weight of the products and is a flat fee per unit. To get the exact fee you will be paying for a product, you will be paying for your product, you can use the size tiers to calculate it. You can learn more about this at sellercentral.amazon.com/help/hub/reference/external/G200209150?locale=en-US

Amazon FBA Business Plan

Although having a business plan is not mandatory, you need it to make progress with your Amazon FBA business. The plan is very important as it will help you access the risk of your business. It will also help you set goals for your business. You need also need to set up a plan for your marketing research.

FAQs

What is FBA?

FBA is known as Fulfillment by Amazon. This is a service offered to Amazon sellers and it helps them ship their goods to customers. With this Amazon picks, packages, and ships your products to customers and is also responsible for customer service ad return orders.

What Can I Sell with Amazon FBA?

In general, you can sell almost anything on Amazon with Amazon FBA. However, some products need to be approved before you can sell them. The Grocery and Automotive parts products categories are restricted.

Before you can sell anything in any of these categories, Amazon will carry out additional checks and you may be required to pay additional fees. During the process of setting up your seller’s account, you will learn more about this. T

What is Fulfillment?

Fulfillment by Amazon is a term used to describe the processes involved in storing, packaging, and shipping orders. This also includes handling returns and exchanges. This service is offered to Amazon sellers.

Is Amazon FBA Business Profitable?

Yes, starting an Amazon FBA business is very profitable. This is because the commerce platform has one of the highest numbers of customers in the USA. With this, you should consider becoming an Amazon seller.

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