What is an Amazon FBA seller and why you should become one

The eCommerce sector experienced a tremendous transformation because of Amazon. Businesses are flocking to the site to take advantage of its superior two-day delivery service and low-cost merchandise. Amazon FBA is one of their most popular programmes for sellers. 

Due to the Coronavirus pandemic, people were more likely to shop from home rather than go to their typical brick-and-mortar establishments, causing eCommerce to grow even more.

In today's post, we'll walk you through the steps of becoming an Amazon FBA seller, as well as the benefits that come with being one of these sellers.

What is Amazon FBA?
Fulfilment by Amazon (FBA) is an acronym for "Fulfillment by Amazon." This means that Amazon will pick, pack, and ship your purchases for you. 

The following will occur once you become an Amazon FBA seller: 
  • First, you contact Amazon to have your things sent and stored in one of their fulfilment centres. These facilities are Amazon-operated warehouses. 
  • Amazon staff will then take inventory of your items and then store them. Additionally, Amazon will issue reimbursements in the event that products are damaged or misplaced.
  • When a consumer places an order, Amazon will select the item from the shelves, pack it in a box, and ship it to you.

What are the main advantages of becoming an Amazon FBA seller?
If you choose to become an Amazon FBA seller, you will be presented with a slew of advantages, the most important of which are listed below:

  • A competitive advantage 
When you sell your products through Amazon FBA, they are automatically eligible for Amazon Prime Free Two-Day Shipping, as well as other Amazon Prime perks. As a result, your products will bear the Amazon Prime mark, allowing you to reach a larger audience.

  • Expanding your company empire 
Because Amazon fulfils your orders, you don't have to worry about the logistics side of things. You can now concentrate on achieving your business goals. You can simply fulfil additional orders as they come in by storing your inventory in Amazon's fulfilment centres.

  • Better search ranking
When it comes to Amazon's search algorithm, FBA products are given priority over non-FBA products. This correlates to higher rankings in Amazon's search results for FBA-fulfilled products and, as a result, more sales. Prime listings are likely to make up the majority of the products on the first page.

  • Customer Service and Returns 
When it comes to purchasing online, buyers like to purchase things that can be returned quickly. Furthermore, if a product has a customer care feature, it is more likely to be purchased than those that do not.

  • Enhance your business reputation
Amazon has a solid reputation, and many buyers believe in it. Working with Amazon and selling on their platform increases your chances of making a sale. You can also take advantage of its large consumer base.

Are there other fees and expenses to consider?
Taking advantage of the service lets you focus on finding profitable products and marketing them instead of worrying about fulfilling orders. For a charge, Amazon will handle the packaging, fulfilment, and customer service for you. 

These charges are incurred as a result of storage and fulfilment costs. These fees must be understood before you begin selling on Amazon FBA because they will affect your pricing and sales calculation. The fees are influenced by three main elements which include:

  • The weight of the product;
  • The size of the product;
  • The channels through which the products are sold, e.g. Amazon or an external site.

If you use FBA to sell a product on Amazon, you'll mostly be dealing with these fees:

  • Amazon Fulfillment Fees 
These are the fees you pay Amazon to get your item fulfilled. This includes all of the steps involved in fulfilling an order, including selection, packaging, shipping, customer care, and, if applicable, return. It's also worth noting that these charges are calculated on a per-unit basis.

  • Monthly Inventory Storage Fees
If you choose to store your products in Amazon's warehouses, commonly known as fulfilment centres, you will incur these expenses. This price is determined per cubic foot and is based on the amount of space filled by the products.

How can I become an Amazon FBA seller?
We'll go over the essential stages to get you started with your Amazon FBA business now that you've learned about the numerous benefits that come with becoming an Amazon FBA seller:

  • Find an Amazon product to sell
Before you open an Amazon FBA account, you'll need to figure out what niche you'll be selling in and what products you'll be selling. You may be tempted to sell whatever you can think of, but it's ideal if you focus on one speciality and the things you'll sell within that area. The ideal method to choose a niche is to consider the areas in which you are most enthusiastic, make a list of them, and then reduce that list down to 3 to 5 distinct niches.

  • Look for Product Providers 
You must first find suppliers who can provide you with high-quality products before you begin listing and selling your products. This phase will take some time because you want to devote as much time as possible to find the most dependable supplier.

  • Create a business brand
Your next task is to come up with a business name and brand choose a product and take care of the shipping. A brand must be recognisable and identifiable when it is created.

  • Create an Amazon FBA account
You must first create an Amazon seller account before you can begin applying for the FBA programme. Head to to get started.

  • Create product listings
Establish an Amazon product listing and add your products. This section is crucial since it gives your clients a better idea of your company's products. Learn how to create effective product listings in our recent blog post, “Optimise your product listings: Why it’s important to make your product listings more accessible.”

  • Get your products ready
You can now prepare your items for distribution to Amazon's warehouses after creating a product listing. Make sure your things are appropriately packaged and labelled so they may be safely delivered to fulfilment facilities. 

  • Create your shipping plan
Print Amazon shipment ID labels, and send your shipments to Amazon fulfilment centres when you've packed your products. 

  • Promote your goods. 
Use social media, PPC advertising, and sponsored adverts to promote your products.

There are numerous benefits to becoming an Amazon FBA seller. You can take advantage of that reputation and develop your business far faster by selling on their marketplace. It's important to note that with hard work, the right product research tools, and initial investment, you can expect your business to thrive on this platform.

Here at Persona Finance, we aim to provide greater value for the community by providing all businesses with essential remote accounting services. For more information on services, please contact Persona Finance at [].