1. What is the Amazon FBA?

FBA (Fulfillment By Amazon) is a form of support for Amazon sellers with inventory provided by Amazon.

Where a seller (or a seller's supplier) ships their products directly to an Amazon warehouse. Amazon stores items in stock and ships them directly to customers (usually via 2-day Prime shipping). In particular, Amazon also supports extremely effective customer care.

2. Two forms of selling on Amazon: What's the difference between FBA and FBM?

Up to now, Amazon has launched two forms of shipping goods to customers. This also becomes two forms of business on Amazon for sellers.

Fulfillment by Amazon (FBA)

Fulfillment by Merchant (FBM): A method of selling on Amazon in which sellers list their products on Amazon, but manage it all themselves, from storage and shipping to customer support. Some sellers may not be able to complete all of this, but usually go through a third party that specializes in providing a specific service, such as warehousing in the US.

As a business, consider carefully your size and financial ability to choose the right form of selling on Amazon. Simply because each type of sales has different characteristics and properties. See more FBA vs FBM comparison to make the best decision!

3. Benefits of Fulfillment by Amazon? Why choose Amazon FBA selling?

3.1. What are the benefits of Fulfillment by Amazon?

After understanding what Amazon FBA is, we need to understand the preeminent features of FBA that contribute to Amazon's success today.

Features of FBA can be summed up in a few words: fast - convenient - safe:

Fast: products are sent to customers in the shortest time. Especially, in 2020, Prime Shipping members can receive goods within 1 day.

Convenience: for example, a seller in Paris that a customer in the US orders, how to deliver? If you choose FBA then you don't have to worry about this. Customers just need to close the order, Amazon will automatically pack and ship the product to the customer. The seller's job suddenly became much lighter.

Safety: goods are stored, preserved and cared for by Amazon to give sellers more peace of mind.

Fulfillment By Amazon FBA Superior Shipping Policy

With its outstanding features, selling Amazon FBA brings a lot of benefits and becomes the optimal choice for businesses:

Professional freight in the shortest time

Save more time with the entire FBA order fulfillment process and professional and experienced team. Fulfillment by Amazon helps shorten delivery times, increasing brand reputation and competition.

Increase sales

Your sales are limited by how quickly and how often orders are closed, packaged, and shipped. Automate the entire process using FBA. The promptness and professionalism in shipping is directly proportional to the level of customer satisfaction.

Customer care

You don't have to worry about customer questions going unanswered or being stuck on your computer for hours answering questions and dealing with issues that arise.

Amazon will handle all customer issues, including refunds. Better yet, any damage or loss to your stock will be reimbursed by Amazon.

Buyers enjoy 24/7 customer care and Amazon's return support if it's an Amazon FBA sale. This gives customers peace of mind to choose your product over your competitors.

No need to pick, pack, or ship

Now you don't need to hire workers to pack, hire a shipping company, because it all boils down to the FBA process. This is an advantage that no other e-commerce company has besides Amazon.

Own a Buy Box

Products sold with Fulfillment by Amazon have a much higher chance of winning the Buy Box because FBA ships faster.

The majority of Amazon customers click Buy Box, so being featured in Buy Box will increase your sales significantly.

3.2. Why choose Amazon FBA selling?

If the seller chooses to sell FBA, the entire process of packaging, shipping and customer care will be done by Amazon.

For example:

Seller chooses FBA when doing business on Amazon and sends 1000 products to Amazon warehouse. When a customer chooses to buy the seller's product, Amazon will automatically pack and ship it to the customer.

After that, Amazon also replaces the seller to take care of customers by answering questions, answering questions, etc. Thus, the seller only needs to ship the goods to the Amazon warehouse, everything else has been handled by Amazon on your behalf.

While the initial Amazon FBA sales fee can be a bit high, the benefits it provides far outweigh the initial cost. By automating your business, you can free up time that you can use to offer more products and expand your business.

4. Cost of selling Amazon FBA

4.1. Amazon storage costs

Businesses need to understand the specific FBA costs they will have to pay for their items (depending on the type of product) when stored in Amazon to create an appropriate and optimal financial plan.

Amazon divides costs into two categories for two types of products:

Product has standard size

Oversized product

If possible, businesses need to find the most compact way to pack goods. But make sure it doesn't affect the quality of the product. This not only helps optimize Amazon storage costs, but also helps reduce shipping costs.

4.2. Fulfillment by Amazon fulfillment costs

In addition to storage costs, Amazon also has regulations on fulfillment fees:

General FBA order fulfillment fee

FBA finishing fee for clothes

FBA removal fee

FBA disposal fee