In recent times, using Amazon FBA has become one of the leading ways to make money online. According to reports, there are about 2 million people who benefit monetary gains from selling products on Amazon.
The most natural step to generate a continuous flow of money is enrolling in the FBA program. You can mechanize the implementation of orders by taking advantage of services like Amazon’s advanced fulfillment and services and also increase sales from coveted Amazon Prime customers.
It is interesting to note that third-party sellers are responsible for almost half of all Amazon sales.
From among the top 10,000 sellers, the number of sellers who use FBA is 66%.
The acronym FBA stands for Fulfillment by Amazon.
Get to know how FBA works:
- Send Amazon the products you want to sell.
- Amazon, in turn, will store your products in their warehouse.
- Upon receiving customer orders of your products, Amazon will collect, pack, dispatch, and help you track the order.
- They are also responsible for handling refunds and returns.
Everything comes with a price, so you will have to pay for Amazon fulfillment and storage fees.
Such payments will cover the charges made to ship goods to the customers, unlimited access to one of the most advanced and largest fulfillment networks in the world, and also gives you access to some stellar Amazon 24/7 customer services.
Statistics show that Amazon has over 300 million active customers, of which in the U.S. alone, 90 million are Prime subscribers. Some of the reserved brands that are available only to Prime buyers are the ones who are using FBA.
Meanwhile, the ones who spend more money on Amazon are Prime customers. According to reports, an average Amazon customer spends $700 yearly, while Prime customers pay approximately $1,300 in a year.
Therefore, by using Amazon FBA, you become more visible to Prime buyers, and your end up making more money.
You can leave all the hard work to Amazon, which uses simple ways to execute the work within FBA.
There are about 100 Amazon warehouses spread out across the U.S. Some of the warehouses spread out over a million square feet, which allows it to accommodate all sorts of items.
The process is easy as you simply have to inform them about the products you are sending, and Amazon will direct you to the appropriate warehouse to dispatch the product.
Upon receiving your product, Amazon will organize it categorically and add it to their inventory.
The next step is storing the products, which Amazon does so correctly in one of their warehouses.
In the case of product damages, Amazon will reimburse you without any hassle when it is sitting in one of their warehouses.
You can rest assured that Amazon is way ahead in all this as they take care of the whole transaction process for you.
They automatically update your inventory after accepting payment.
Once the customer places their order, at the Amazon warehouse, either a worker or a working robot takes the product from the storage, wraps it properly into its container, and dispatches it to the buyer.
After completion of product delivery, Amazon quickly follows up with queries to the customer to make sure the shipment is up to their expectation.
Other than confirming delivery and product satisfaction, Amazon also takes measures to handle any additional questions and product returns from the customer.
Meanwhile, it is your discretion on whether to respond to the feedback from any customer about your product.
According to Amazon policy, every two weeks out of the total sales of your products, they deduct the seller fees and transfer the remaining profit into your bank account.
Now, doesn’t that sound fast and easy, right?