How to sell on Amazon FBA for Beginners

Amazon offers an incredible platform for entrepreneurs to enable them to create an online business which is fully functional and one which can be done from the convenience of their homes. Among the reasons as to why entrepreneurs should put into consideration selling on Amazon includes giving them a chance to access the Amazon shoppers who range from 2.5 billion monthly which should mean a high number of sales for the started business.

Since Amazon has had 24 years of business, it means that selling on Amazon provides the customers of entrepreneur’s business with the trust which has been built over the last 24 years and also Amazon’s Fulfillment -by -Amazon program usually does all the heavy lifting for the entrepreneur. In addition, Amazon has sales estimation software which assists the entrepreneur to predict their sales before they happen and example being Jungle Scout this, on the other hand, provides the entrepreneur with the ease of scalability, Where the entrepreneur has the power of determining the size of their business.

For beginners, Amazon FBA means Amazon Fulfilled -by-Amazon and in this program, Amazon does all the heavy lifting for the entrepreneurs making it the best chance for the beginners to make it. Before one starts to sell on Amazon it is advisable to understand how it works

1.  One need sends their Amazon products which are stored in one of their one-acre fulfilment centres. The fulfilment centres are compared to massive warehouses which are usually run by very hardworking employees supported by robots.
2.  The products are sorted and added to inventories. The company takes good care of the products and in the event of damage, the company has a reimbursement policy at a full retail price.
3.  Upon a customer placing an order on Amazon for the products sent by the entrepreneur, Amazon usually handles all the transactions for the entrepreneur since the whole process is automated.
4.  The products are later picked from their place on the shelves, packs them in the boxes and Shipps them to the customers on the entrepreneur’s behalf.
5.  Upon arrival of the products to the customer, it is still the responsibility of Amazon to follow up with the customer as a way of ensuring customer satisfaction and in case of dissatisfaction, Amazon takes care of it.

Nevertheless, the seller still has responsibilities which include picking the product to sell, keeping the inventory in stock which is assisted by Amazon by letting the seller know when the inventory is running low and lastly promoting and advertising which assists customers in finding the products.

Amazon accounts

There are two types of Amazon FA seller accounts which are individual and professional. Individual seller accounts are usually free and the professional accounts require a subscription fee of $39.95 USD. For the sustenance of the company, Amazon charges small charges which are after making a sale.

Amazon fees

A 15% referral fee on all sales for most of the categories. Upon using an Amazon’s FBA service, shipping and handling cost are deducted. Items such as DVDs and books have an additional flat fee and when selling on an individual seller plan, there are usually no subscription fees but there is an additional $1.00 USD flat fee. Lastly, long-term storage usually accrues storage fees.

In addition to the above fees, there are inventory costs which are dependent on the types of products the entrepreneur decides to sell on Amazon. The private label method is usually recommended since it is accompanied by moderate investment upfront However it’s totally up to the entrepreneur to chose whether to start with a few things in the house to experience the feeling of how to sell on Amazon FBA.