In 2021, Amazon's total consolidated net sales amounted to US $469.82 billion, US $127.78 billion of which was generated through international revenue channels. North America was the largest operating segment, achieving net sales of more than US $279 billion for the year. It can be said that Amazon has been far ahead of many other competitors in the market. For sellers, taking advantage of this business channel, and especially the perks that FBA service, Fulfillment by Amazon is still the top factor that they should consider. So, with 85% of Amazon sellers using FBA, is selling on Amazon FBA still worth it? Let's find out soon!
According to Amazon, FBA is a service that allows you to outsource order fulfillment to Amazon. At which the seller will perform storage of his goods at Amazon warehouses. When a customer orders a product, Amazon is responsible for packaging and shipping from this center to the customer! The advantage of Fulfillment by Amazon is to reduce the burden of packaging, shipping, and customer service for the seller.
With 85% of Amazon sellers using FBA, let's take a look at some of the reasons why it's so popular!
Buy Box is a display on the product details with an Add to Cart that customers can use to add items to their cart. When one of your listed items appears as a default on the product page, you win the Buy Box, increasing your chances of selling that item.
If you are a Fulfill buy merchant (Fulfill buy merchant (FBM) you must meet all of the conditions listed below to be able to obtain a Buy Box.
If you sell FBA, you will automatically be eligible for a Buy Box.
Amazon now holds almost half of the e-commerce market and has become so popular that the platform has changed consumers' search and shopping behavior.
In the past, shoppers used Google to search for products they needed to buy. By 2021, up to 71% of consumers would go directly to Amazon to search for prices, reviews or make purchases on the platform.
As Amazon will increasingly expand its market share in more countries if you're a seller on the platform, use FBA as a way to increase brand visibility and future business growth.
If you are wondering whether to go into FBA business this year, start planning to take products to FBA as soon as possible. If you use FBA to sell, you're not only growing and expanding your brand, but you're also helping customers get the perks that only FBA sellers can offer.
When using FBA, you will have access to tools such as:
If you are a small business and do not have enough resources to manage and ship goods to customers, using FBA is the perfect choice! FBA supports all stages, from packaging, and transportation to customer care. Businesses using FBA will save time, effort, and resources.
How long does it take to start FBA sales?
To start selling FBA, the first step is to be prepared. If you already have a major product line to ship, the average time to launch a product is within 3 months, as 55% of Amazon sellers do. Many sellers only take about 6 weeks to ship FBA.
During the peak shopping season, be prepared to ship one month in advance to ensure availability in Amazon warehouses during the sale season.
Most sellers on Amazon make at least $1,000 per month, and some sellers can make more than $100,000 per month.
50% of Amazon sellers make between $1,000 and $25,000 a month, which translates to annual sales of between $12,000 and $300,000.
13% earn $25,000 to $250,000 / month, resulting in annual sales of $300,000 to $3,000,000.
22% of sellers earn less than $500 / month
