What Are The Most Asked Questions About Amazon FBA
The Fulfillment by Amazon (FBA) program is the most popular and competitive way for sellers to sell on Amazon. It offers a variety of perks, such as making it easy to find an audience, tap into Amazon’s storage space, and reach more customers. Amazon FBA is a popular service with an ever-growing number of users. The main reason is that it makes the process of selling and shipping your products much easier. Amazon has already created a logistical network, so you don’t need to get additional help from third-party logistics services or do it yourself. You just need to fill up your inventory, pack the shipment and send it to Amazon.
So what are the most asked questions about Amazon FBA? Below you will find answers to these.
Why should you use Fulfillment by Amazon?
First of all for its benefits. Shipping is one of the most tedious and time-consuming aspects of running an online business. You have to deal with inventory, warehousing, and fulfillment.
Amazon has the answer for you with Fulfillment by Amazon (FBA). FBA is a service that lets you send your inventory to Amazon’s warehouses. Then Amazon will store, pick, pack and ship your items when they’re purchased on its website.
With FBA, your products are eligible for Amazon Prime free Two-Day Shipping, and all Amazon customers can get free shipping on eligible orders.
Do I need a custom package for selling on Amazon FBA?
The answer is NO, you do not need a custom package. With that said it definitely won’t hurt, your packaging designs do have an impact on the customers.
Amazon sets minimum requirements to ensure a product doesn’t get damaged, and to make the shipping process as easy as possible for their fulfillment center.
How Much Does Amazon FBA Cost to a Seller?
The FBA fulfillment fee is applied whenever items are sold on Amazon, it is a per-unit fee charged to fulfill items to customers for purchases on Amazon. The fee varies by category, size, and weight. It is better known as the “pick and pack” fee.
On April 28, 2022, a 5% fuel and inflation surcharge was applied to FBA fulfillment fees.
Fulfillment fees for FBA orders
Monthly inventory storage fees
Long-term storage fees
Removal order fees and disposal order fees
Returns processing fees
How to use FBA?
It is an easy process: Ship items to Amazon > Byers purchase product > Amazon packs product > Amazon ships product
You procure the products and ship them to an Amazon warehouse
Amazon will then store them at a fulfillment center until an order is placed by a customer
When an order is placed Amazon will update your inventory and pack and ship the order to the customer
Amazon handles customer care and follows up on the order. Amazon also handles returns and refunds
If you have FBM listings you can convert them to FBA, under the Manage Inventory page select Change to Fulfilled by Amazon from the Actions pull-down menu.
Can I offer a product through both fulfillment channels ( FBA and FBM)?
In short, the answer is yes. Amazon allows you to list the same item for both FBA and FBM.
In the FBM program, you are responsible for handling all of the tasks (Storing products, Processing orders, Shipping goods, Handling returns, and Providing customer support)
Note that you will need to create a unique SKU for each fulfillment channel.
How long does it take for Amazon to stock my product in their warehouse and make it available to the buyer?
Normally, it takes 3-7 business days for Amazon to stock your product and make it available to buyers. But if you haven’t packaged or prepared your item according to Amazon guidelines, the wait can be much longer.
You are able to track the status of your shipment in the Shipping Queue with the status going through In Transit, Delivered, Checked-In, Receiving, and finally Closed.
Does Amazon FBA help in increasing sales?
Yes, Amazon’s FBA program will drive more organic sales than selling the same product on your own. This is due to several factors.
Search engine rankings – Amazon’s search engine favors Prime listings and your offer will have increased visibility because of it.
Conversion – Buyers that click through to your listing are more likely to buy it if the product is eligible for free 1-day or 2-day shipping. There is a correlation between the increased conversion rate and how high a listing ranks
Trust – Amazon is one of the most trusted brands today and customers are left satisfied with the purchase.
Using Amazon FBA earns you trust and reviews from customers, which ultimately increases conversion rate and sales.
What is the Amazon Buy Box?
The Buy Box is the white box on the right side of the Amazon product detail page with the Add to Cart button that customers can use to add items to their shopping carts. When one of your listed items appears as the default on the product page, you increase your chances of getting sales by winning the buy box.
It is given by Amazon to sellers that meet certain criteria, products listed at the best prices, FBA/Prime shipping offered, availability of stock, seller’s performance, and outstanding customer service.
Can I ship from a manufacturer in China directly to FBA?
Yes, here you have options, you can have the product shipped directly from China to Amazon warehouses or ship to yourself or a 3PL and then ship the product to Amazon FBA.
When shipping from the supplier directly to Amazon, you must have confidence in their ability to maintain quality and package goods according to your instructions. You will need to instruct them to prepare your items according to the FBA specifications.
Using a Third-Party Logistics provider. A 3PL service will receive your package from China, either receiving it into inventory or shipping it to Amazon for you. Shipping your product this way you can use Amazon Partnered Carriers for either small parcel shipments or LTL and it is cheaper.
How do I know where my inventory is located?
Amazon offers its sellers access to Reports, your Amazon Fulfillments reports and Inventory Event Detail documents can provide you with a wealth of information about the whereabouts of your inventory. Just visit the Amazon Seller Central platform for more info on these documents.
What are UPC codes and do I need them to sell with Amazon FBA?
UPC codes are 12-digit numbers that describe each item, it is as unique as an email address or a social security number. They are used by virtually every company in the world to identify and track products.
Every item that you send to an Amazon fulfillment center must have a product identifier (barcode). This is because every product needs to be scanned into Amazon’s fulfillment center.
Amazon requires you to have a product identifier not only to identify the product but to also attaches it to your Brand.
Most items sold on Amazon need a UPC code, but there is one exception. Do you own the brand and registered it with Brand Registry Program you can apply for GTIN exemption. This lets you add your products without a UPC code.
Can I sell or buy an FBA business?
The simple answer is yes, you should always contact Amazon to ensure a smooth transaction. Also, do your due diligence if purchasing and look at all the information. ( Account Health, look at the monthly reports, and understand Advertising metrics).
If you would like to sell, be sure to consider all aspects of your business, and the real value that could be placed on it.
A careful track record of profits, and operation costs is crucial in helping you place a value on the business. The longer you have been active on Amazon will also help determine the business’s worth.
I am hoping that this blog has answered any questions you might have had and given you insights regarding being an Amazon FBA seller.