Getting Started With Amazon FBA
Let’s start from the beginning: what exactly is Amazon FBA? Essentially, FBA stands for “Fulfilment By Amazon.” This does exactly what it says on the tin: it means that Amazon will handle your fulfillment.
With FBA, you’ll be able to outsource all of the most complicated, costly, and error-prone aspects of your business, and instead just focus on choosing products and selling them.
That’s because Amazon will handle both storage and delivery, meaning that you just need to get the products shipped directly from the supplier/wholesaler to Amazon’s warehouses (called “fulfillment centers” which sounds like some kind of self-help cult hideout).
Your product will then be listed on Amazon, and will then be fulfilled via Amazon. That means in other words, that Amazon will list your product on its storefront, and every time someone puts in an order, it will send it out to the buyer.
This way, you can potentially fulfill hundreds of thousands of orders without needing to see a single product! Of course you will pay fees, and there are particular regulations you need to abide by.
But for the small business owner or entrepreneur, this is a FAR preferable scenario than having to have large amounts of inventory delivered to their home. And it opens up nearly endless opportunities.
Your buyers can even benefit from Prime delivery and get their products the very next day. Amazon Prime alone has over 95 million members in the US alone, and that’s only 59% of the user base in that country!
The site owns 49% of the eCommerce market in the US too. By having your products listed on Amazon, they become significantly more likely to succeed – especially as customers have become so used to buying on the platform with a single click.
With Amazon handling the delivery, you’ll have just a few fees to worry about and no logistics, tracking, or other stuff that can go wrong! Your customers will be getting a service that is comparable to the very biggest and best-known brands in the world.
As long as you do your research when choosing your products, invest wisely, and know how to write a great store listing… then you can’t fail.
Getting Started Creating Your Amazon FBA Account
But before we go further, first you will need to understand how to start your business on Amazon. You are going to need to sign up for an account so you can go ahead and start sourcing products. You should create your account before you invest in any stock!
The first step is to go to: https://services.amazon.com On the page, click Start Selling: You’ll then need to register your business details. Follow the rest of the steps to complete your Seller account registration.
In order to get started, you will need to start creating your listings. This is relatively easy fortunately! Just sign into the homepage and then find the inventory tab.
Click “Add a Product” and then “Create a New Product Listing.” You can then select the most relevant category for your product.
The next page may be a little overwhelming and is filled with fields to fill out. The good news is that a lot of these can be ignored, but things you will need to fill out include:
• Item name (the name of your product as it will be seen by the customer)
• Brand name (your business name)
• Recommended Browse Node
• Product ID (the IUPC number on the barcode)
• Fulfillment channel
For the last option you need to select “I want amazon to dispatch and provide customer service for my items if they sell.” You’ll also need to write a description, add keywords, and more.
We’ll discuss how to choose the best options for all these things in future posts, but for now, all you need to do is to click save and finish!
Of course, you’ll also need to set up a payment method, your business address, and all manner of additional details in order to sell effectively. But all of this is self-explanatory and should be easy to understand as you follow through the instructions.
Sending the Stock
Woah there! We haven’t even chosen our products yet! While this is true, it’s useful to go through the set-up process now, just so that you know what you’re going to be dealing with once you’re ready to go.
If you chose Amazon as your fulfillment method, you will next be taken to a page titled “Send/Replenish Inventory.” Once you get to this point, you will need to provide more details for your item. That includes such things as the proportions of the item and the weight.
There are also some key requirements for all items that are going to be sent to Amazon. They all need to be labelled with a label that is unique to that item, with a shipment ID. This is an internal barcode Amazon will use in order to track and manage all of its inventory.
You can either get the freight forwarder to handle this for you, or you can pay Amazon to do it on your behalf. Using a freight forwarder is cheaper, but only slightly – and Amazon is easier to use!
Now you’ll need to tell Amazon how the inventory will be delivered. You can pick “Small Parcel Delivery” and “Amazon Partnered Carrier.” This means that the factory will be able to send products to Amazon using a carrier that is approved by Amazon.
It’s a good idea to make sure that all the boxes you send have a consistent size and weight, which will keep this easy to calculate. You’ll need to prepay for the delivery based on the number and proportions of the boxes that you will sell.
Amazon will generate a pre-paid label for you in the form of a PDF. You’ll simply pass this on to the freight forwarder, and the freight forwarder will attach them to the cartons to give to the carrier to take over to Amazon!
The freight forwarder is of course the company that will take your products from the factory, through customs, and to the desired country.
Seeing as many of the manufacturers you work with are going to be based in China, you will need a freight forwarder as well as a carrier at the other end (usually UPS) to bring your product to Amazon’s warehouses.
After you’ve gone through all these steps, you’ll be shown the cost of the shipment. Just click accept (assuming you do) and you can then proceed. That’s everything, done!
All that is left is to wait for your parcels to arrive, at which point your listing will be live and people will be able to begin placing their orders. How exciting!
Getting Started With Amazon FBA – Conclusion
I hope this has given you some insight on how to get started with Amazon FBA and check out some of my other posts that will go into more detail on choosing the right niche and product.
If you found this post helpful leave a comment below and share with your friends. Let me know your thoughts and experiences about selling on Amazon.