Amazon is currently the world’s largest retailer and a huge marketplace. The reason behind the success of Amazon is the fact that it keeps on adding new and interesting products and various different service offerings that continue to broaden its customer base. Amazon focuses on customer satisfaction and that is the reason that Amazon has broadened its target market.
Online shopping has become a new normal since pandemic and Amazon offers its customers a wide range of products from every category which makes online shopping more easy and enjoyable. The number of sellers have also increased on Amazon. There are many successful sellers on Amazon like Munir Ahmad who gained accomplishment in this business
FBA works better for sellers
Fulfillment by Amazon works best for sellers who want to save their time from logistics, shipping, and customer service. This method allows sellers to free them from the hassle of inventory management. Amazon does that part for you so that you can focus on other important aspects. This has been a great deal offered by Amazon and is beneficial for sellers.
FBA through the years
Amazon introduced a program that gives access to its own logistics machine that includes stock management, customer service, suppliers, and warehouses. It helps small businesses to deliver their product on time. This is a great initiation for sellers and they don’t have to worry about the storage and staff. The good thing about it is that the whole system is so streamlined that even customers don’t know that they are buying the product from third-party sellers. This system was proved beneficial for numerous sellers and they can grow their business easily like that of Munir Ahmad who has raised his business through continuous efforts.
Working of Amazon FBA
Now let’s understand this system in detail and get to know that how exactly it works.
Here are few steps mentioned below that sellers must follow
- The key is to research the product first and then select but with high demand and low competition. Your focus should be to find a product that will bring you the most profit.
- Always check on the supplier before sourcing the items if the supplier is trustworthy or not.
- Create a list of your products to advertise and sell in the marketplace. Try to use meaningful and targeted keywords to attract the customers. For better understanding search for sellers who have excelled in this business.
- Things Amazon handles in FBA
- Amazon store products in its fulfillment centers. These products are being distributed among different warehouses.
- The next step is to process transactions of the items that have been ordered. After that Amazon packs the products and sends it for shipment.
- All customer service related tasks are handled by Amazon that includes requesting ratings or reviews and providing tracking details.
Benefits of FBA
- Increased search ranks
The algorithm of this system is made in a way that FBA products are ranked higher in the list. And it also increases your chances of winning the buy box.
- Brand association
By delivering the items on time customers have trust on it and it is appreciated that a third-party is handling the delivery tasks.
- Customer service management
All customer service related tasks are handled by Amazon that includes requesting ratings or reviews and providing tracking details.
- Access to Amazon Prime
All FBA products are Amazon prime eligible. Amazon Prime has a benefit of free delivery option for its customers, and more chances to win the buy box.
Cons of FBA
In FBA there is a huge competition among sellers and it’s no less than a rat race because a large number of sellers are being benefited from FBA.
- Product guidelines
The guideline states about the packaging, labels, and its shipment to the warehouse. And in case of any failure it will result in rejection of item from storage.
- More returns
Amazon FBA handles returns and refunds for brands and some sellers experience more returns after joining the program. So that could be a problem as well.
With pros come cons as well but you need to stay focus and choose what’s best for your business. Take reference from sellers like that of Munir Ahmad who focused on his goal and made it happen.
How to get started with Amazon FBA
Here are two options you can use before starting an Amazon FBA business
- To buy an FBA business
- Setting a FBA business from scratch
After choosing how to start your FBA business, next step is to set up the business. These are the steps you need to follow in order to set your FBA business.
- Create Amazon seller account
- Listing your products
- Optimizing your listings
- Activating FBA
You can also maximize your FBA sales. Here’s how you can do that.
- By using analytical tools
- Choose the right product
- Building your brand
- Cater any query
By following these methods and steps you can easily excel in this business on Amazon and earn great profit.