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Fulfillment by AmazonAmazon is a complete ecosystem of products ranging from basic tools to electronics, specialized equipment, literature and even groceries! The question that immediately pops up into mind is; how does Amazon sell all that stuff, and the answer is simple. It doesn't! Amazon, while still churning out its own branded products, is majorly a platform where other businesses come to sell their products.

What is FBA?

As it happens, Amazon is also one of the best places to start your own business currently. While you can do everything on your own, it could be a much better option best to let Amazon take care of the logistics for you. This service comes in the form of FBA which means “Fulfilled by Amazon”. Why is it that many thriving businesses are opting for this service by Amazon? Well, that is exactly what we will tell you here, so keep reading to find out how you can launch a successful business too.

How does FBA work?

FBA, in short, is Amazon basically taking over all the hard parts of running your business and doing it for you while you relax. The system is so amazing that it can practically be automated 100% and you don’t even have to move a limb. Here are the steps that are involved in FBA:

 

  1. All the products you want to sell, you send to Amazon’s massive fulfilment centers where highly advanced robots and hardworking employees take care of your products.
  2. After receiving, Amazon sorts and inventories the products that you have sent and puts them in an appropriate location as per their own policies. The system is so foolproof and effective that if any product gets damaged in the warehouse, you receive full reimbursement from Amazon.
  3. As soon as a product is ordered by an Amazon customer, Amazon automatically takes care of the whole transaction for you through a highly automated process.
  4. Amazon packages your product and ships it to the customer who receives it and provides their feedback. If there is an issue with the order then Amazon can take care of that as well.

Between sellers providing good quality products and Amazon’s incredible infrastructure, the need for the seller to actually get involved is almost negligible. All this hard work comes at a cost of course and Amazon actually charges a percentage referral fee on each sale. Some categories also have a flat fee in addition to that.

What is your job?

If all this is fascinating to you, and if you are reading this then we believe it does, then this is the role that you have to play:

  • Figure out what to sell: this is the very first decision that you have to make for your business. Amazon can only sell what you tell it to sell and you need to figure out what that thing should be. The best way to do this is to first of all figure out what you are passionate about. Once you do that, see if that has an actual market, or if something similar is popular for selling. A lot of tools can help you out with that.
  • Find a supplier and keep restocking: you need to develop a good link with a supplier who can provide you with the product you want. Whether it is something you made yourself or simply want to resell something, it is completely your decision. The stock you receive from your supplier will need to be sent to Amazon and once you have developed a reordering chain, you can keep restocking just with a few clicks.
  • Promote your products: to stand out among millions and millions of products, you will need to make sure people know about your product. This can include the use of good keywords in product descriptions, advertising on Amazon, creating your own social media presence etc.

Individual vs Professional

You will also get the option to either set up an individual account or a professional account. We highly recommend that you choose the professional seller account as it will help you a lot as your business grows. You will not have any of the restrictions of the free individual account and a lot more features will be available to you as well.

Last but not least, if you can, try to create your own identity and brand name on Amazon as that will give an incredible boost to your business. These are only some of the things about FBA but should help you set yourself up as a seller on Amazon. It is a learning game beyond this point and as you explore this world you will start seeing ways to make your venture as efficient as possible.

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