Amazon FBA

What is Amazon FBA and How Does It Work?

There are many ways to sell products online, and one of the most popular and profitable methods is through Amazon FBA. It is such an amazing business that most people are doing from all over the world.

Online shopping has become part of the average consumer’s lifestyle and is set to grow even bigger over the coming years. More and more marketplaces and online stores are popping out, serving the masses, niche interests, and so many more.

Over 1.66 billion people shopped online in 2017. That same year, global online retail sales accounted for close to $2.3 trillion, with growth projections of 2x by 2021.

What is Amazon FBA and how does it work? To begin, let’s make it clear that FBA means Fulfillment by Amazon, and it is a system or program that allows anyone in the world to sell items on the Amazon platform, with the advantage of being able to store them in their warehouses and also Amazon is in charge of sending them to customers, handle all refunds, returns, and provide excellent customer service.

Fabulous isn’t it? It is incredible what is possible today with the help of technology. However, this does not mean that we do not have any responsibility as a seller. What it does mean is that we can free up a lot of time to focus on other businesses, spend more time with our family, or dedicate ourselves to doing our hobbies.

The Amazon FBA program can help you eliminate many headaches and also scale your business, let’s see in 6 steps how the system is summarized.

Create Amazon FBA Account1. Create an account as a professional seller:  If you don’t have an account you can see our post Open a Professional Seller Account on Amazon. If you already have an account you can log in here.

List your Products on Amazon
2. List the products in the central seller platform:
 If you still don’t know-how, you can see our post on How to Sell a Product on Amazon.

Prepare your Products
3. Prepare your products:
  Make sure your products are ready so that they can be safely transported to the customer’s hands.

Send your products to Amazon
4. Send your products to Amazon: 
 Create shipping plans to amazon warehouses, track inventory, track and wait for amazon to receive them and enable them to put them up for sale.

Amazon Prepares Packages

5. Customers order their products, Amazon prepares packages and ships to customers: 
Customers with PRIME membership will have a free and fast shipping benefit-eligible by Amazon.

Amazon Offers Customer Support6. Amazon offers customer support on the products we sell:  The amazon customer service team manages customer inquiries, reimbursements and order returns, 24 hours a day, 7 days a week.

What is Amazon FBA and how does it work

After creating an Amazon FBA account, the second setup is product hunting that is one of the most difficult parts. I will you each and everything with step by step guide in other blog posts. I’m creating this post just for an introduction to Amazon FBA.

Amazon FBA is a big business that can generate passive income if you get the golden product. A golden product is a product that people are looking for but no one is selling it and if someone is selling then the competition will be very low.

Most people find a golden product 3 or 4% golden product out of 100%, but that is not enough. You have to contact the supplier first who is manufacturing this product.

It is not so easy as just mention above because it takes a lot of time + investment and still there is no guarantee that your money will not be lost.

The chances of success in Amazon FBA is just 20% out of 100% because of competition and strict rules of Amazon for sellers. If you need more information about Amazon FBA. I leave you this FBA link. I hope this information has been useful to you.

So I hope you will like this simple intro about Amazon FBA. For more information and blog posts about Amazon FBA kindly bookmark this website to learn about Amazon FBA and more. Stay tuned.

Hamza Hashim

I'm a Freelancer having skills in SEO and Social Media Marketing with over three years of experience in these fields. I have worked for many brands. I have helped businesses to gain higher visibility in search engines. I am familiar with carrying out SEO optimization practices from small to large companies.