11 mins

Selling on Amazon FBA | Outsource your customer service šŸ“¦

Chris Grundy
Mar 2, 2018

Selling on Amazon FBA | So you've heard a lot about selling on Amazon FBA and you're looking for a blog post to lay out the pros and cons in simple English? Well, you've come to the right place! :)

That being said, I know we get a bunch of readers who do not yet sell on Amazon, preferring other online selling sites like Etsy and eBay instead. For those of you who are unconverted to the church of Amazon, let me tell you why it's high time you give the platform a try.

First off, Amazon has unparalleled reach in the western world. According to this awesome Infographic, the platform has 304 million active customer accounts, counting an incredible one out of every ten US citizens among it's Prime members. And Prime Members spend a lot of money, around $1,500 per year on average.

You can see therefore that Amazon is absolutely nailing it and should be included in the business strategy of all sellers regardless of size. But Amazon's incredible reach and large GMV aren't the only thing that make the platform attractive to sellers.

Selling on Amazon's FBA program is just as big a draw as anything mentioned previously. So let's dive into what Amazon FBA is, how you can profit from it, and how you can start selling.

What is Amazon FBA?

You can see therefore that Amazon is absolutely nailing it and should be included in the business strategy of all sellers regardless of size. But Amazon's incredible reach and large GMV aren't the only thing that make the platform attractive to sellers.

Selling on Amazon's FBA program is just as big a draw as anything mentioned previously. So let's dive into what Amazon FBA is, how you can profit from it, and how you can start selling.

Getting started selling on Amazon FBA is a simple process but important to get right. That is why I've broken it down into 6 easily digestible steps. These steps assume that you're already selling on Amazon. If this is not yet the case, you can get started here.

  1. Add FBA to your account in your Seller Central here
  2. Create your product listings: You can list your Amazon products one by one, in bulk or by using your preferred inventory management system.
  3. Prepare your products: Selling on Amazon FBA requires you to prepare your products by labelling and packing them. They call this 'eCommerce ready' and you can read more about it here and here. The best guideline is that your product should now be ready to be delivered to the paying customer.
  4. Ship your products to Amazon: This step is the major difference between selling on Amazon FBA and just selling regularly. Instead of shipping your products to your customers, you send them to warehouses owned by Amazon.
  5. Customers order your products: Here they will be stored until they are ordered by one of your customers. Amazon then ships your product to the customer and essentially takes care of the customer relations side of things for you.
  6. Amazon provides customer support: This is the second killer advantage of selling on Amazon FBA. Amazon simply offers world-class customer-service and is available 24 hours a day, seven days a week. By signing up for the Fulfilment by Amazon program, you outsource the heavy lifting and concentrate on growing sales.

What are the costs of selling on Amazon FBA?

Pricing information is always best understood in a table format, so I've included screenshots from Amazon's fees page. Importantly, the fees which apply when selling on Amazon FBA very by size and time of year. Fee periods are split up into January-September and October to December.

Naturally, smaller products incur fewer fees and typically make better products to start off with.

Conclusion | Selling on Amazon FBA

For experienced sellers on Amazon, the fulfilment program is a no-brainer. The ability to hand over the headache of customer service alone, makes it very attractive. That being said, this blog post has laid out the potential downsides of joining FBA as well. The dangers of commingling and FBA fees should not be ignored, but the upside here is so big, that it more than makes up for it.

Thanks for reading :)

PS: So you've found the most profitable things to sell on eBay and Amazon, and are now looking for a way to finance your growth? Then check out our excellent Amazon loans, which are designed to provide sellers like you with the capital they need to make bulk purchases, hire new staff or try new products. Want to talk about it? Book an appointment with me here.

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