September 04, 2022 7 min read

Amazon and eBay are two of the most well-known names in the Western e-commerce industry. The potential of these platforms allows millions of sellers worldwide to earn money online! FBA, or Fulfillment by Amazon, is one of the most popular ways to make money on Amazon today! What exactly is FBA? What exactly is Amazon FBA? How does FBA make money? Let's go over the specifics with Printway right now!

what is fulfillment by amazon

What is Amazon?

Before learning about the various ways to make money through FBA or FBA, What exactly is Amazon? What exactly is Amazon Fulfillment? Let's take a look at the Amazon e-commerce platform in general.

Perhaps online shoppers are no longer unfamiliar with the name Amazon - the world's leading online retailer! Jeffrey P. Bezos founded Amazon in July 1995. Amazon began with online book purchasing and selling in the United States. Amazon has grown beyond the borders of the United States, spreading its influence to many countries around the world!

Until now, Amazon has been one of the e-commerce companies with the most global buyers. Amazon's products are not limited to books, but also include millions of other items such as electronics, clothing, home appliances, and so on.

Amazon is considered a fertile ground for online businesses. There is no need to spend too much investment like traditional stores, with Amazon sellers only need to register a store, pay a monthly rental fee and update products and still earn a stable income!

What is FBA? What exactly is Amazon Fulfillment?

What exactly is FBA? What exactly is Amazon FBA? Fulfillment by Amazon (FBA) By Amazon is a type of warehouse support for sellers offered by Amazon. There are two main ways to sell on Amazon: direct selling and indirect selling!

what is FBA


Direct selling is when a seller lists his or her products directly on Amazon and is responsible for all steps such as storage, packaging, shipping, and customer service! With online sales, sellers must deal with unforeseen issues such as handling returns, customs procedures, product packaging, and so on.

Fulfillment by Amazon is the process by which a seller stores his goods at an Amazon warehouse. When a customer orders a product, Amazon will package and ship it from this facility to the customer! The benefit of Amazon Fulfillment is that it relieves sellers of the burden of packaging, shipping, and customer service.

How does Fulfillment by Amazon work?

To simplify the concept of FBA, consider the following basic operation: You are the seller, and Amazon is the delivery service!

The FBA form's detailed operating procedure is as follows:

Step 1: You ship your item to an Amazon warehouse where it will be stored at the Fulfillment Center.

Step 2: Once the goods have been delivered to Amazon, you can track the inventory using Amazon's system.

Step 3: Customers place an order on Amazon or another e-commerce site.

Step 4: Amazon receives the order, packs it, and ships it using the method selected by the customer, while also providing order tracking information.

Step 5: Manage returns and provide customer service.

Fulfillment by Amazon is available to sellers on other platforms as well as orders placed on Amazon. Sellers can use this service to fulfill orders placed through their website or other e-commerce platforms.

How to Sell FBA for Beginners 

Let's go over how to sell FBA for businesses and beginners in detail right now!

Step 1: Identify potential product niches for FBA sales

Before deciding on products to sell, research the best-selling product categories on Amazon and pick a specific niche to sell in! The best way to find out what is a potential product for your business is to go to Amazon's Best-selling section. To begin, shape products and research their potential!

Step 2: Find product suppliers and customize the products you want to sell

Once you have found the product you want to sell, you can order it from trusted suppliers. Printway encourages you to look for suppliers who can personalize products by printing, labeling or allowing designs on products to create a unique impression for your item when compared to other items available on the market. It also makes your product more competitive!

Step 3: Create an Amazon seller account.

This is a step for businesses or individuals who are just starting to sell on Amazon; selecting the Professional package is a wise decision because it allows sellers to save more money when there are a lot of orders!

Step 4: List Amazon FBA products

You create a product listing, fill in specific descriptions, and include detailed images of the product so that customers have the best overview of your product!

Step 5: Deliver goods to the Amazon warehouse

You must prepare the necessary quantity of goods before sending them to the Amazon warehouse. If a product is out of stock, it will be downgraded and sales will suffer. Prepare the appropriate quantity of goods before sending them to the Amazon warehouse.

Before sending the goods to the warehouse, ensure that they are specifically packed and labeled to avoid breakage or damage during transit!

Step 6: Store and manage goods

Amazon will assist sellers with stocking at their storage center. Sometimes the goods will be automatically distributed to the warehouses depending on the demand in each area. Within the first 6 months, customers will receive free storage. After 6 months, goods will be charged for storage based on the space used, make sure you have enough stock for you but don't overstock!

Step 7: Promote FBA products

Use promotional tools to increase customer reach of your products!

Step 8: Order, Shipping, Tracking

When a customer places an order, Amazon will take full responsibility for packaging, shipping and updating order tracking for the customer! You don't need to worry about this!

Step 9: Strictly manage inventory

To avoid disrupting business operations, inventory must be carefully managed to ensure that goods are not overstocked and that there are always enough goods to supply customers.

What are the advantages of the FBA?

fba pros

Increase your sales

Many businesses have increased their sales by up to 20% as a result of taking advantage of Amazon's massive traffic. Every day, tens of millions of people visit Amazon, and it is this free traffic that allows businesses to thrive even without spending a lot of money on advertising!

Take advantages of Amazon Prime 

Your product will be labeled Amazon Prime if you use FBA. According to Backlinkio research, the number of Amazon Prime members has surpassed 200 million people. Amazon Prime will be available in 22 countries worldwide by October 2021! Amazon Prime members receive free shipping, receive it quickly, and save time in just two days after ordering!

Convenience, less stress about managing goods and shipping orders

If you own a small business and lack the resources to manage and ship goods to customers, FBA is an excellent option! FBA assists with all stages, from packaging to shipping to customer service. Businesses that use FBA save time, effort, and resources.

Allow for omni-channel sales

Sellers can use the FBA form on websites or other e-commerce platforms in addition to Amazon. Multi-Channel Fulfillment allows merchants to ship products to Amazon customers as well as customers from other platforms. This helps to reduce the risks associated with managing multi-channel sales, such as wrong goods, mixed goods, and many different sales platforms!

Take advantage of Amazon's trusted customer service

Many traders prefer FBA because of its global customer service network. This department is in charge of dealing with customer requests, refunds, and returns for faulty FBA orders!

Customers can reach FBA customer service via email 24 hours a day, seven days a week. Sellers will no longer have to spend time managing customer service! Furthermore, Fulfillment by Amazon is in charge of processing return orders; customers will be informed more about return policies and how FBA handles returns and refunds!

Product quality control is strictly enforced

This system will censor and monitor the quality of Amazon Fulfillment products. Before being stored, the product will be subjected to a thorough inspection by Amazon. Amazon only fulfills qualified products. Products that are damaged or broken will be returned to the seller! Thanks to this quality control process, the seller minimizes returns and ensures that the goods that reach the consumer are the best and of the best quality!

What are the disadvantages of the FBA?

fba cons

The cost of using FBA is quite high

In addition to the monthly fee of $39.99 or $0.99 for each product sold when using FBA, sellers must also pay fees such as:

  • Storage fee: Amazon will charge a monthly storage fee based on the amount of space your goods occupy in your warehouse, expressed in cubic feet. In addition to this fee, Amazon will charge an additional fee if your item is in stock for more than 365 days.
  • The Fulfillment Fee by Amazon (FBA) is a unit fee charged to fulfill orders for customers. This fee is determined by the category, size, and weight of the goods.
  • Fees for FBA handling: If you request that Amazon process your goods at an Amazon fulfillment center, you will be charged a processing fee for each order based on its weight and shipping method!
  • Order Refund Charge: When a customer returns Watches, Jewelry, Luggage, Bags, and Sunglasses orders, the seller is not charged a return fee. If the returned item falls under the category of Clothing or Footwear, the return fee will be charged per unit!

Can't get customer information

When you sell Fulfillment by Amazon, you don't know your customers and therefore can't use remarketing tactics to retain customers! While direct selling helps you interact with customers, make remarketing easy and increase the rate of customers coming back to buy next time!

You can't create your own brand

You should not use Fulfillment by Amazon if you want to build a brand for your products. Customers who purchase goods in this format will not be aware of the store's information, logo, image, or brand identity that you wish to convey.

Customers looking for suppliers of FBA products can now consult Printway's list of FBA products! Printway enables sellers to fulfill any product on the website at a reasonable cost. Sellers at Printway can freely customize products to any design they want when fulfilling orders! Fulfill at Printway to sell our high-quality Print On Demand products with competitive base cost prices.

Hạnh Hoàng
Hạnh Hoàng

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