By using Amazon’s FBA service, you ship your products to Amazon and they store them on one of their many huge warehouses. When a customer makes a purchase, Amazon will pick the item up from their warehouse and ship it directly to the customer. The customer has no idea that they are purchasing from a third-party seller instead of Amazon directly.
They receive the same standard of delivery, return and refund policy and service as if they were buying directly from Amazon. This means that by using FBA, you get access to millions of ready-made customers who have already shown that they are willing to spend money on similar products, with no need for you to invest thousands or even hundreds of thousands in storage facilities or staff.
You also get access to all the other benefits that come with selling through the Amazon website such as their powerful advertising tools, A-to-z Guarantee and Prime membership benefits. You can even sell your products internationally without having to worry about international shipping costs or customs issues!
The way Amazon FBA works is that you source the products you want to sell and send them to Amazon’s fulfilment centres where they will be stored until a customer purchases. When this happens, Amazon will pick, pack and ship the product to your customer.
So now we know how Amazon FBA works, use amazon fee calculator to estimate revenue of a specific product category fba let’s take a look at some of the benefits:
Benefits of Selling with FBA
Amazon is a very popular and trusted marketplace. Your shoppers will feel confident buying from you because they know Amazon’s reputation is behind you. This means Amazon sellers are more likely to make a high number of sales.
As well as this, you can benefit from the Prime service, which offers benefits such as free next day delivery on orders over £20 for Amazon Prime customers. When your items are stored in an Amazon warehouse, it is much easier for you to be able to offer free delivery services to your customers, as well as being able to offer faster delivery speeds.
Amazon uses a system called The Buy Box, which many shoppers use when browsing the site. If you want an edge over your competitors, you need to win the Buy Box so that your listing appears alongside it each time a shopper is searching for one of your products. The Amazon FBA program makes it easier for businesses like yours to win the Buy Box and secure those all-important sales!
These are just some of the benefits that come with using the FBA program – there are many more! To find out more about how FBA can help you sell on Amazon, check out our article The Benefits of Selling on Amazon Using Fulfilment by Amazon (FBA).
Amazon FBA is a great way to take advantage of Amazon’s logistics for your business. When you sell through Amazon FBA, your products are stored in Amazon’s warehouses where they are picked, packed and dispatched by Amazon employees.