Easy Guide to Joining Amazon FBA Program | Trendosaur

Do you know you could earn a decent living, actually more than decent living, using the Amazon FBA program? You could actually build a scalable business, and earn as much as a 6 figure income or even become a millionaire doing Amazon FBA business.


Before we go into the nitty-gritty of joining the Amazon FBA program, we’ll show you exactly what it is and perhaps the idea that drives it.

What is Amazon FBA?

Amazon is the store we know too well while FBA simply stands for fulfilled by Amazon (FBA), well, that’s the short of it. In this article, we’ll be exploring what Amazon FBA really is and how you can join in.


The FBA business model, is one of the reason Amazon keeps on growing as a platform. If you’re looking to start an e-commerce business, Amazon FBA will be a great way for you to start. Basically, the Amazon FBA program is almost running an e-commerce business. You list your product on the site, people order and you get your money. However using the FBA program, the amount of work you do is very much reduced.


Here’s how it happens, after you’ve sorted out what you want to sell and have done the packaging, you then ship it to an Amazon fulfilment centre close to you. Now, these fulfilment centres are actually warehouses where your products are stored until someone orders them. Once your product gets into the warehouse, you don’t have to do any other thing. When an order is made, Amazon searches for the product and ships it to the address, so the buyer can get it in two days.

5 Vital Things to Know Before Joining Amazon FBA Program

It’s not free

Nothing is free in business and this is very true for the FBA e-commerce model. There are a few Amazon FBA fees to be paid. 0n joining you’ll pay a fee of $39.99; this is also a monthly subscription fee you’ll pay for as long as you are a professional FBA seller. The registration is not the only fee you’ll pay. You’ll pay for using Amazon fulfilment centres and then you’ll also pay for fulfillments. The longer your goods stay in the warehouse, the higher your bill will be. Amazon of course charges you for shipping, but it is quite indirect as it is put into fees you pay. Amazon takes about 30% of your sales on platform.


Joining the FBA program is by no means cheap. Look at it as a price you’d have to pay for outsourcing the shipping of your inventory to Amazon. It’s a case of money spent to save time, so that you can focus on other vital aspects of your business. You should calculate the cost though, if you think you’d make better profits handling your inventory and shipping yourself, then FBA is definitely not for you.

Amazon FBA Program Can also Be Used on Other Platforms

Now that’s another beauty of the FBA program, whether you sell on your own website or on another popular website like craiglist.com or ebay.com, you can always use the Amazon fulfilment program. This means you’ll still use Amazon’s fulfilment centres, and pay all the fees that are associated with using the FBA program, only that Amazon won’t be taking a commission of your sales, seeing that you’re not selling on their platform.

Your FBA Account Can be suspended

Amazon has very strict policies as regards using the FBA program. One reason Amazon has been able to thrive is because of the trust they have built with their customers over the years. Anything that will likely jeopardize is often dealt with severely. Therefore, if your account is suspended it’s almost impossible for you to get it back.

Some Reasons Your Amazon FBA Account May Be Suspended;


Manipulating reviews

The best way to get great Amazon FBA reviews is to satisfy your customers, if you buy reviews and are caught, well, say bye-bye to your Amazon FBA account.


Inferior quality goods

If there’s high returns of your products or a lot of buyers complain about the quality of your goods, Amazon might just have to snuff out the light on your account.


Piracy

When you take credit for someone else’s intellectual property, sell it as yours and Amazon discovers, they’ll pull the plug on your account and the owner might also sue your for violating their intellectual property laws.


Having multiple Seller Accounts

You can only have more than one seller account with Amazon’s permission. Usually, you’re allowed just one account.


It’s not as easy as It Looks

Nothing good comes easy, so you shouldn’t expect anything less from this. Competition on Amazon is fierce, to take good advantage of Amazon FBA program, especially as a beginner, you might have to look for unique products. That is products that are not on Amazon, but that the market will be willing to buy. Now, this is going to take a lot of research from you, you’ll also need a unique UPC code. You’ll need a laser printer for this, and after the printing, to do the packaging and labelling, and off course shipping to Amazon fulfilment centres.


Price on Shipping is not Value Based

Amazon charges you for storage and shipping based on the weight and size of what you’re selling. So selling small products of high monetary value is a great way to make some good profit. However, these products are usually tech niche which is already being saturated, especially by the Chinese who can always import such products to the U.S for next to nothing.


Step By Step Guide to Joining FBA Program

Create an Amazon Seller Account

That is assuming you don’t have one already. Visit services.amazon.com to create an Amazon seller account. While registering you’ll notice that there are options for two types of sellers, this can be found on the “Before you register’ section. One is the individual seller, while the other is for the professional seller. So if you’ll be selling less than 40 items a month, you should opt for the individual seller, as you’d be charged $0.99 on every product sold. However, if you’ll be selling more than 40 products a month, then the professional seller option will be better for you, you’ll be paying a monthly fee of $39.99. Then you’ll need to input your personal details like names, email etc.


List your products on Amazon

If you have decided on the products you want to sell and have sourced them, here is the next step, if not, then you should skip this. Tap on the inventory button on top of your screen and click on add a product. You’ll have to search for the product, either by name or by bar code, however if it’s a new product by you, you’ll need to create a new product. Next enter the details of the product, such as the condition it is in and price you’d want to sell it for. For shipping you have the option to use the Amazon FBA program or for you to ship it yourself. At the shipping method you’ll be asked whether you want to ship it yourself or you want Amazon to do the shipping for you.


If you choose the “I want Amazon to ship it” option, then you’ll receive a pop up screen from Amazon, all you have to do is accept the terms and conditions.


Of course you can always skip this shipping option steps, if you convert your products to Amazon FBA items. Here’s how to do it, click on the “manage inventory” option in the inventory tab at the top of your seller homepage screen. Then click on the “Actions” button, and then click on the “change to fulfilled by Amazon” button. Now you are to do this for all your products. So automatically your products will be fulfilled by Amazon.


Create a Shipping Plan for Your Products

After listing your products to Amazon FBA you will be prompted to choose any of the options: “FBA Label service” or “stickerless commingled inventory”. For the first option, Amazon will do the labelling and packing for you. It will cost you about 20cents per product though. For the latter option, there are no labels and Amazon might ship an exact product from someone else’s inventory in place of yours to a customer. That is if the matching product is in a closer warehouse to the customer. The caveat here is that you can’t ascertain the quality of the person’s goods, so you just might bear the brunt for a bad product.


After this step you’ll be prompted to select “convert only” or “convert and send inventory”. If you’re shipping one product, then convert and send is good. But if they are multiple “convert only” is the better option. If you pick convert only, you’ll be required to choose a shipping plan. So you’ll input a ship from address and the type of packaging you’ll be using. Next add all the items you want to ship out for sale.


Shipping Proper

All your products are ready for shipping, go to your “Manage FBA Shipments” under your inventory and then click on continue with shipping plan. Buy shipping from Amazon and send it to your local postage office. If the products are a much, you might need to get haulage for it. Amazon also provides such services for a fee. Once the package gets to an Amazon fulfilment centre, it’s off your hands, just sit back and wait for customers to order your product.


Word of Advice

This is not a get rich quick scheme, you’d actually have to do a lot of market research, source for products at rates that are very cheap for you to make profit from, before doing your sales. It is also very important that you start slowly, pace yourself and keep searching for products you can sell on Amazon for a good profit.


Conclusion

Amazon FBA business qualifies you for the Amazon prime two day shipping. By the way you don’t have to be a third party seller to use the Amazon FBA, even a manufacturer can use it as a means to expand their market. If your intellectual property rights are violated by other sellers, you’d have to report them yourself to Amazon, they’ll not catch anyone on your behalf. The fact that Amazon wants everyone to be on FBA doesn’t mean you should be on it. Check if your business can handle all the requirements before you invest huge sums of money. Remember that there are several other ways to sell products online and its best to go with one that you can easily sustain.

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