What is Amazon FBA?

Fulfillment By Amazon or shortly framed as Amazon FBA is a program or better say business model that is pretty similar to a traditional e-commerce business. The reason for its rapid popularity is that it makes your business a lot easier for you without you having to worry about the logistics of packaging materials, warehousing your products, shipping, fulfilling orders and so many other problems related to e-commerce businesses and networking.

Amazon stores your products, then picks them up, packs and ships them out to the customers at the assigned designation and all of this ois done by an automatic system. You won’t be suffering from random headaches as you don’t have to be handling every aspect of the business by yourself.

With opportunities like Amazon FBA, you can have private labeling and have a tremendous chance of creating your own website and brand. In short, you can increase your business networking, profits, and value of your own brand by just leveraging Amazon’s customer base and robust distribution network.

Moreover, for the entrepreneurs, there is no better platform than Amazon FBA. You just need to figure out the market and product opportunities Amazon will handle the rest on your behalf.

How does it work?

In simple terms, Amazon does all the hard work for you. The detailed process of the services that FBA provides to sellers and how it works is described below:

First, you send the products you want to sell to Amazon’s fulfillment centers which are like massive warehouses. The warehouse is taken care of by hardworking employees and robots.

After your products are sorted and inventoried, you are capable of monitoring them through their tracking system. They are taken good care of but in case of any mishandling or mishap in the warehouse, Amazon actually does a great favor. It reimburses the full retail price for the damaged product.

Your products are now available on the Amazon website. Customers can now buy your product. You only have to design the product listing.

The Amazon handles the transaction when a customer places an order for your items. The whole process is automated.

After the placing of the order, it’s time for packing and shipping. Amazon picks it from the warehouse shelves and packs the sold items chosen by the customer and later ships it as per the method selected by the customer, on your behalf. You can track all information by yourself through your Amazon seller account.

When the customer receives the product, still at this point, Amazon follows up to provide return management and customer service for items, making sure if everything is okay with the order. Everything is taken care of by Amazon automatically.

In which countries does Amazon FBA operate?

According to Amazon you can currentlz sell on 11 global marketplaces. These include Canada, Germany, Japan, United States, France, United Kingdom, Spain, Italy, Mexico, Brasil, China, and India.

According to the Amazon reports in 2015, the Prime membership grew by 51%. Moreover, they also had announced the opening of a second large-scale fulfillment center for fall 2017 in Italy and a new sortation center in the northwestern part of the country- Turin.

How does product sourcing work?

Before heading towards how the sourcing works, you have to know about what sourcing of a products means. In simple words, it means to find products that you want to sell to accelerate your business. There are many things to keep in mind about Amazon inventory management, about product sourcing and from where to buy them.

The products may be of international or domestic sources but the most important thing here is to ensure the value of the product you have selected. A little bit of a product sourcing and research will save your business from being stuck due to the unsold products.

The selection of the right type of product to sell gets difficult when there are so many options available such as the clearance aisles, wholesalers, big box stores and many others. The selection of the right products for your business is critical to improve or decline your business. So, to help you out, the top product categories are Health and Personal Care, Beauty Products, Toys, Home Goods and Kitchen.

A good starting point for sourcing products in China is Alibaba. Alibaba is a website where most Asian manufacturers offer their products for you to buy. You can also ask manufacturers to create new products for you.

How can this online Amazon FBA calculator help you?

The online Amazon FBA calculator is designed to help calculate your product business case. It will give you an indication if you business idea will be profitable. Therefore the calculator will thell you different values like:

The amaount of money you have to invest to source your product

The total costs for different numbers of sourced units

The Amazon fees (like sipping fee, sales/referral fee, storage fee)

The revenue which you can make

The profit of your product

The margin of your product

The percentage of the Amazon fees in relation to the revenue

How different sales prices affect your profit

And much more...

The online Amazon FBA calculator proved to be handy and is useful for any FBA seller. The Amazon seller fees cover up the cost of various fulfillment services including the outbound shipping, weight handling, order handling, storage, and the pick & packing services, ...

This calculator is ideal if you want to start your Amazon FBA business. You can calculate your future profits and how much money you have to invest upfront. Typically, Amazon FBA sellers find production companies via Alibaba in order to source a new product. These products can then be shipped to the Amazon Warehouse. The products are then available to be sold. You can decide on the retail price and how much money you want to spend for advertising etc. Use the calculator to find out if you have a valid use case to start your Amazon business.

Conclusion

Amazon FBA proved to improve lives of sellers and entrepreneurs. If you are thinking to change your life for good and you want a platform for expressing your ideas with financial freedom, ability to create something that’s your own and a 4-hour work week, this e-commerce platform is what you are looking for.

Even if you love to shop or thinking of earning some extra cash (who don’t love some spare money) with starting a side business Amazon’s Fulfillment by Amazon program is the best option so far.