• Nishant Rawat

What Is Amazon FBA And How Does It Work?

We are living in the golden age of digital medium where there are so many ways to make money while working from home and the best part is that most of them don’t require you to have a degree or any kind of formal education. Today we will talk about one such way that is called Amazon FBA.


Amazon FBA is definitely one of the most popular ways to earn money online. There are millions of people using Amazon FBA model to sell products on Amazon worldwide. Therefore in this post, we will talk about what is Amazon FBA and how it works.


What Is FBA?


FBA stands for Fulfillment by Amazon, it's a service provided by amazon which allows an online seller to use Amazon's warehouse facilities to store and ship the products they want to sell or already selling through the Amazon e-commerce website.

As a seller using Amazon FBA, you can automate your order fulfillment by taking advantage of amazon's excellent shipping and fulfillment services and earn more sales. But all these advantages and facilities come at a price. Amazon charges FBA sellers for both fulfillment and storage. These charges also include the cost of shipping products to the customers and Amazon's excellent 24/7 customer service.


How Amazon FBA Works?


You can start simply start selling products with Amazon FBA by using your regular amazon seller account and following simple instructions to add products to your FBA section. With just a few clicks, you will be able to grow your business with the help of Amazon in a very cost-effective manner.


In other words, Amazon will take care of all the hard work for you within FBA, thus works in a pretty straight forward manner.

Step 1: Send your products to Amazon FBA

Amazon has 1000s of gigantic warehouses all over the world. You send your products to one of Amazon's warehouses (they will tell you where you have to send your products).


Step 2: Amazon will store your product

Once Amazon receives your products, they will add them to their inventory management system and your products will be stored properly in their warehouses. In case of any kind of product damage in the warehouse, Amazon will pay you compensation for the products.


Step 3: Customers buy your products.

Amazon will expose your products to the customers and will take care of the entire transaction i.e payment acceptance and inventory updating.


Step 4: Amazon picks and packs your product for shipping.

One of the workers working in Amazon's warehouse will pick your products from storage, pack it in a box, and ships it to the customer who bought your product.


Step 5: Amazon handles the majority of the customer service.

Once the customer who purchased your product receives the product, Amazon follows up to make sure everything is ok with the shipment. Amazon also takes care of customer questions and return requests.


Step 6: You get paid.

Amazon adds up all your sales, subtracts your seller fees, and sends your profit into your bank account every two weeks.


That's it. The whole process of selling products via Amazon FBA is pretty simple, but still, there are few things that you need to do in order to make sure that you are profitable and successful, some of those things are:


1) Select the products you want to sell on Amazon


Amazon marketplace is the home of millions of products and as a seller, you can literally sell anything, but if you really want to avoid Amazon storage fees, you need to make sure that you select products that will sell quickly.


2) Keep track of your inventory in stock


You will need to be thorough with checking your inventory on Amazon in order to make sure that your product doesn't go out stock suddenly.


3) Put efforts in advertising and marketing of your products.


As we told earlier Amazon is the home of millions of products and to stand out among these crowd of products, you will need to put the effort into advertising the products. The idea is that you need to make sure that customers can find your products.


Amazon FBA can be a worthwhile business venture for people who are interesting in selling products online, but it's very important that you do your own research and understand the rules and regulations around it.


Millions of amazon sellers are using Amazon FBA and making profits out of it, but it doesn't mean that it will be same for you. Ultimately, how Amazon FBA works for you will mainly depend on the products you are selling and how dedicated you are towards it.


Well, this is just the beginning of your journey into the world of Amazon selling. There are many things yet to explored and learned. But we hope, this post has created some curiosity in your mind about it.


Thank you so much for reading this post, please feel free to leave your feedback.

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