Amazon FBA, or full-price affiliate advertising, is a program in which Amazon sellers can create their own products eligible for Prime shipping when a potential customer orders them and then pays the full retail price. The concept is simple: Amazon handles all of the administration and all of the payment processing, so you don’t have to worry about either. Jon Penberthy explains how it works:
Amazon offers two kinds of fulfillment options for sellers on its website: the Amazon fulfillment center (AFC) and the wholesale fulfillment option (WHS). An Amazon Seller Account is the gateway between the website and the fulfillment centers. Once an account is opened, an individual can list their products on the website and then go through the Amazon warehouse process described above. Once a purchase is made, an activation link for the product is sent through the Amazon website and if the buyer approved the purchase, the link is sent to the seller’s Amazon FBA warehouse.
When a purchase is made, the product catalog is updated and a bill of sale is processed by the Amazon fulfillment center using the purchased price as the commission structure and the payment terms of the Amazon website. If all goes well, an order is generated and an Amazon FBA driver is contacted by the seller and a quote is given for the storage fees and other charges. The seller then submits the completed product catalog and payment to the Amazon website and the Amazon FBA driver verifies the order and sends confirmation letters.
Amazon’s FBA provides many advantages to an online retailer. The most obvious one is the ability to start making money online immediately. By listing physical items on an Amazon storefront, customers will have the opportunity to see and hold the product. Amazon’s fulfillment services allow for prompt shipping of orders. In addition to this, it offers excellent customer service, rapid stock delivery, and many perks and benefits.
Amazon fulfillment centers are staffed by experienced professionals who are ready to help sellers effectively manage their businesses. These facilities offer all of the services that conventional retailers would usually provide, including regular inspections of the warehouses, which are scheduled on a weekly basis. Amazon warehouses also offer a wealth of tools to help sellers market their products. They have hundreds of online marketing resources including their popular Customer Reviews section and their Seller Central, where sellers can post their finished products for members to bid on. Amazon also offers its own affiliate program, which has tools for marketers to use.
Another advantage of working with Amazon is the exceptional customer service that it provides. Amazon warehouses have state of the art technology and a staff of fully trained employees ready to work with any type of seller. In addition to this, most Amazon fulfillment centers boast extensive experience in logistics management, which makes them invaluable to new or established sellers.
As an importer, you need to be aware of all the expenses that go along with shipping goods overseas. Aside from shipping and handling fees, there are also customs and clearance taxes that you need to pay. If you have the resources, you can use a third party company to take care of these various costs for you, but using Amazon also has its advantages. The main advantage of working with Amazon is that they allow you to offer a wider variety of products to your customers. By offering more products, you will increase your chances of making a sale.
The biggest advantage of selling on Amazon is the opportunity it gives you to build a solid business. Amazon allows you to list not only in your own state but in every state around the world as well. This means that you can amass products for sale in every state in which you operate stores. And this not only helps you expand into new territories but also gives you a lot of opportunities to increase your profits. So what is Amazon for and how can it be used to make money importing products for resale?