A Beginners Guide on Amazon FBA

Firstly, you need to understand what FBA is. FBA stands for Fulfillment by Amazon.It is an e-commerce service where the vendors can store their products in the form of inventory and the bigger seller pick these products up and take all the necessary actions until it reaches the buyer or also takes care in case there are some returns or even refunds.

How to become Amazon FBA seller?

Starting an Amazon FBA business is a very simple thing. It takes only a few steps to be an Amazon seller. The steps to follow are:

  • You need to register your seller account on Amazon. To be an Amazon seller you need your tax information including your PAN, GST number and your official bank account.
  • Next is the most vital step. Uploading the listing. Make your listing such that each category is well defined. You can use some of the simple listing apps available online. If you require assistance related to cataloging, photography or any other matter related to listing of products you could even contact the Amazon team of professionals.

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  • Seeing the listings, the customers place their orders online. If you are lucky and if your listings are fulfilled by Amazon then you become eligible for Amazon Prime. It also makes you eligible to advertise on the Amazon site with some of the sponsored products and attract your target audience.
  • Next comes the delivering of the products. Fulfillment by Amazon ensures that all the steps from picking up the order from the storage to delivering it to the customer and ensuring customer satisfaction is met. FBA is one of the best services that Amazon offers to the sellers and brings in a balance between the sellers and the buyers.
  • Get your payments in your bank account within 7 working days. The only amount that would be deducted is the Amazon Sellers Fee.

This said and done, the Amazon FBA service has been used by quite a number of sellers across the globe and they are pretty satisfied with the product.

Also Read- How Amazon Ranking Works?

How to Make Money on Amazon FBA?

The next question that comes to every seller’s mind is that how you can make money using the Amazon FBA.  You can make your product listings and set your prices accordingly.

Then once a customer places an order for your product Amazon will take the initiative and ensure that the product reaches the customer at the stipulated time and the charges incurred on the product are sent to the seller’s account after deducting the processing fee by Amazon.

How Much does Amazon FBA Cost?

If you got the idea about FBA by now and is worried about how much it might cost you, read on to know the breakup and the services included in FBA.

  • For Rs.0 – Rs. 250 in the select category it is charged Rs. 15 and Rs. 25 for all other categories
  • For Rs. 251 – Rs.500 it is charged at Rs. 15 for select category and Rs. 20 for all other categories.
  • For pricing at Rs.501 – Rs.1000 the charges are Rs. 12 for all categories
  • More than Rs. 1000 the charges are Rs.26 for all categories.

The services which are included at this price are:

  1. Storing the products at the Amazon fulfillment center
  2. Promotion of the product at the Amazon website
  3. Taking in customer orders and packing and shipping them to customers
  4. The overall customer service and customer support, which include general customer support along with processing returns or refunds.

It’s quite a number of services at quite an amazing price. There are people across India who prefers to rely upon Amazon FBA rather than manage their own inventory and sales themselves.

A lot of trouble is taken care of by the Amazon FBA. Only a minimal work needs to be done by the seller and as the customers start ordering the products the amount gets transferred to the bank account of the sellers which has been provided to Amazon.

Picking and Packing per unit of product cost Rs. 10 and storage per square foot cost Rs.20. There are other charges which vary with the size and the kind of the products. There isa nominal disposal fee which again varies as per the size of the product.

Amazon FBA has a set standard of size measurement also. The sizes are divided into small, standard, oversize and oversized heavy and bulky products. The weight handling fee also varies depending on the quantity and extra charges are applicable on extra weights per Kg.

Amazon FBA for Beginners

As already mentioned, as a beginner you do not need to perform any additional activity to start selling. All you need to do is register on Amazon FBA, complete your tax information and update your bank details.

Next thing that comes up is the Listing of the product for which you can take expert help as well. You can have a good number of customers ordering your products, Amazon taking care of it all and money pouring into your bank account as and when the payments are made.

How to start an amazon fba business with little money

There is absolutely no cost when it comes to Amazon FBA and starting a business with. All you need to do is register for the FBA and sort yourself out with the customer services, pick and delivery of your products to the customers and all the steps involved in the selling process.

The Amazon FBA is a very good service provided by Amazon and it is especially beneficial for Sellers who do not want to spend extra charges on inventory and publicity or even labor to pick and drop the products to the customers for that matter. You need to prepare your products such that they are good to go and you list them on the FBA site, the rest of it is taken care of.

Amazon FBA Fee Calculator

In the Amazon FBA portal, there is an in-built calculator which decides what amount of profit margin you can have from each of the products you are listing. This calculator will ask for your product category and once you have mentioned that, it will calculate and tell you how much money you can make as a profit from each of the products.

This calculation takes into account the rate card of Amazon and the amount of money which needs to be paid for a product by the customer that is the listed price as well as the category of the product.

Also Read- Amazon Pricing Strategies for Merchants

There are people across India who are unable to bare the extra expenses which comes with inventory management and advertising. This is when they take help from Amazon FBA who have a very good business model to help the sellers out in every way possible.

What are the Benefits of Amazon FBA?

Amazon FBA comes with a good set of benefits due to which more and more seller is drawn towards it. People would like to pay for FBA rather than individual inventory. Click To Tweet The Benefits of Amazon FBA are:

  • The payments are safe and your bank details are secure with Amazon. After every purchase, your funds are directly transferred to your bank within 7 working days.
  • Your orders are shipped for free. If a customer places an order you need not worry about how to get it across to them. Amazon FBA will take over with its Easy Ship policy.
  • The customer service and support come with seller support as well. In case as a seller you need some kind of support or information, FBA has the necessary help providers for you. If you are a customer or a seller you can easily take help from the FBA support regarding any issues or any queries.
  • Advertising becomes easy with Amazon FBA. Amazon searches will help you reach out to your target audience and get your products known to the world. These kinds of targeted ads are known to boost the sales for sellers.
  • Sell across the world. Not just in the local masses, you can reach out to the global markets with the Amazon FBA markets and make a huge amount of money selling worldwide. Customers from every corner of the world can view your listings and purchase your products and everything is taken care of by Amazon FBA.

If you still haven’t tried the Amazon FBA services, it is time you do so now.

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