Amazon becomes one of the greatest marketplaces today and it can be explored for those who want to run an online business. Well, through its popularity, Amazon gives big chances to get success in transactions over the world. However, about Amazon, you need to know its details, including what is Amazon FBA.
Well, do you ever hear about the FBA of Amazon?
FBA becomes one of the features provided by Amazon. Of course, this feature will ease the members or sellers of Amazon to sell the products. On this occasion, we will talk about some matters about it to add more knowledge for preparation before starting the online business on Amazon.
What Is Amazon FBA Mean?
The FBA stands for fulfillment by Amazon. It is one of the special features of Amazon that can be chosen by the seller. Through this feature, the seller could automate order fulfillment by using the advanced shipping from Amazon. Of course, the service to the customers will be better and prime.
A fact that you need to know about Amazon is half of the sales on Amazon come from a third-party seller. It is a huge amount to be considered as to how you choose your position in starting a business on this platform.
Besides, around the top 10,000 sellers, 66% of them use FBA. It could be evidence that FBA works very well for the seller and it could be such a weapon to increase the sales rate when you run your online business.
Benefits of Using FBA to Run Business on Amazon
After knowing what is Amazon FBA, these are some detailed benefits of this feature to be known. The benefits of FBA could be reasons why you need to use this feature to get more clients and increase the rate of selling.
The first benefit of using FBA is effortless shipping and logistics. Here, you do not need to prepare the logistics and ship it when you get an order. Amazon will handle it for you. All you need to do is making sure that the process runs well.
Then, by using FBA, you also will get some discounts on shipping rates. As we know, the shipping rate becomes what the customers consider before they make a transaction. With the discount, the rare of shipping can be decreased, so the selling can be increased.
Another benefit of FBA is the management of returns. As we know, sometimes, processing the returns will give another pain. It is quite reasonable since there will be a long process to do. However, with the FBA feature, the return can be handling easily and there is also a guarantee that the product will be fine.
How Amazon FBA Works for You
Another important point that you need to know besides what is Amazon FBA is how FBA will work for you. Of course, knowing the working scheme of FBA is essential because it can be the reason for using it to explore your business.
Something to be known here is Amazon will handle all the hard work that you need to do with FBA. The detailed scheme of the work of FBA for you –as the member and seller on Amazon, are:
- Sending your products to Amazon. Here, Amazon has around 100 warehouses across the US and each warehouse is integrated
- Amazon will sort and store the products that you sent. Of course, you could control the report of the sorted products
- A customer buys your product through your account
- Amazon will ship your product after getting the notification
- Amazon will handle all services for customers
- You get paid from the transaction of every customer
Well, that is all about the FBA that you know. After knowing what is Amazon FBA, now it is time for you to practice with it.