What is Amazon FBA and Why Should I Care?

Amazon Fulfillment by Amazon (FBA) is a service that allows entrepreneurs to store their inventory in Amazon's fulfillment centers.

Here, Amazon takes care of storage, packaging, shipping, and customer service for these products. The main appeal of Amazon FBA is that it simplifies the logistics and operational challenges that often come with running an online business. This lets sellers focus more on product development, marketing, and scaling operations.

What makes FBA Popular:

1. Access to Prime Customers: FBA products are automatically eligible for Amazon Prime, which means they are available for free two-day shipping, increasing their attractiveness to over 200 million Prime members globally.

2. Scalability: With Amazon handling the heavy lifting of fulfillment, sellers can easily scale their business without the need for additional resources for shipping and handling.

3. Global Reach: Amazon's vast network of fulfillment centers around the world means sellers can reach international markets more easily than if they were shipping products themselves.

Step-by-Step Guide to Starting an Amazon FBA Business

Step 1: Setting Up Your Amazon Seller Account

• Choose Your Account Type: Decide between a Professional or Individual seller account. Professional accounts come with a monthly fee but offer additional selling tools and the ability to sell more than 40 items per month.

• Registration: Provide your business information, tax details, and a valid bank account. Amazon will verify your information before activating your account.

Step 2: Sourcing Products

• Market Research: Use tools like Jungle Scout or Helium 10 to find profitable niches and products with high demand and low competition.

• Finding Suppliers: Platforms like Alibaba or domestic manufacturers can be used to source products. Always order samples to check quality before placing large orders.

• Cost Calculation: Include costs such as manufacturing, shipping to Amazon's fulfillment centers, Amazon fees, and any other overheads to evaluate product profitability.

Step 3: Listing Your Products on Amazon

• Product Listings: Create compelling product listings with high-quality images, detailed descriptions, and optimized keywords for SEO.

• Pricing Strategy: Set competitive prices while considering costs and market demand to maximize profits.

• Launching: Consider using Amazon’s advertising tools or external social media promotions to increase visibility.

Step 4: Managing Inventory

• Inventory Planning: Use Amazon’s inventory management tools to keep track of stock levels, sales patterns, and forecast demand.

• Restocking: Reorder products based on lead times and selling velocity to avoid stockouts, which can negatively affect your product rankings.

Do’s and Don’ts for Amazon FBA Success:

‍

DO:

• Optimize for Mobile: Ensure your listings are mobile-friendly, as a significant portion of Amazon shoppers uses mobile devices.

• Focus on Customer Service: Respond promptly to customer inquiries and feedback to maintain high seller ratings. Just a few terrible reviews can end a good thing.

• Regularly Review Metrics: Keep an eye on performance metrics through Amazon Seller Central to understand sales trends and adjust strategies accordingly. FBA selling is NOT “set it and forget it.”

DON’T:

• Neglect SEO: Failing to optimize product listings with relevant keywords can severely limit your product’s visibility. Fewer eyeballs means fewer sales.

• Ignore Competition: Always monitor competitor strategies and market trends to stay competitive.

• Underestimate Costs: Be thorough in calculating all potential costs to avoid surprises that can eat into your margins.

The “Easy Button” For Launching Your Store
‍

Starting an Amazon FBA business can be highly lucrative, but like any business, it requires careful planning, execution, and ongoing management.

At Push Ecom Solutions, we specialize in handling the setup, launch, and active operations of your store to help you create ongoing, semi-passive income.

From initial product selection to scaling up and serving more customers, our leadership team has been in the trenches of FBA for 15+ years.

If it’s a good fit to work together, we can put these skills to work for you. Click here to get started.

‍