Amazon is part of a business model's incredible success. There is only that cater to their winnings to realize that it is a reference to the enterprise level.
Perhaps the secret is the perseverance and effort to devote as one of the business more renewed, in which you can participate any entrepreneur. And is that Amazon reaches all parts of the world, sell all kind of products and offers a huge visibility, what more can you ask for?
In addition, the latest trend that is taking very popular among people who want to sell their products is Amazon FBA. whatWhat is Amazon FBA and how it works? Here you we have!
What is the FBA Amazon?
¿What it means to FBA? The acronyms stand for "Fulfillment By Amazon"that comes to be a system that Amazon has launched so that the sellers can benefit from the following services: receiving products, store products, send products to you, managing returns, and customer service.
Put another way, the only thing you will have to make the professional marketer is to send the goods the giant ecommerce and everything else will take care personally of your computer. What is certain is that at a glance it seems like a very viable alternative to best facilitate the work of the seller.
In fact, the greater part of the work to be performed will be developed by Amazon, so the seller will act as if it were a provider of products. From here we're going to catch up on how it works and the steps you have to give as a salesman for access to their services.
How much charged by Amazon for FBA?
Once you know what is Amazon FBA, now you will be interested to know that the platform charges its customers.
The company is responsible to complete the process of delivery of the products, hence assume a additional cost for sellers that must be studied carefully. We have prepared a summary list the fees Amazon FBA to assess if you really compensates for:
Account FBA
To access the services FBA, you need to activate your seller account in Amazon, which costs 39€ without VAT.
Cost of store
Amazon is responsible for the distribution, but also the storage, which involves other expenses. Normally, the fee for storing the inventory of the seller is charged a monthly basis depending on the space they occupy the products in their logistics centres. To calculate it, the company uses the measurement of the average volume in cubic feet based on the size of products packaged and ready to send.
Fee for long-term storage
For the products from inventory that are left in their warehouse for more than 365 days, Amazon applied for a monthly fee. If the goods are not multimedia, the cost will be€ 170 per cubic meter, or€ 0.10 per unit.
Other costs
In this case, would come the occasional expenses such as advertising campaigns or considered minimal as the labeling.
Commissions made for sale
For each sale obtained through Amazon, the company will charge to Amazon between 8 and 15% of the total cost of the product sold. The percentages used will depend on the category in question.
Shipping costs
The rate of logistics management will depend on the size and weight of each shipment. To calculate it, Amazon uses different types of packet size. As is logical, it will also influence whether it is a seller national, as the shipping will be more easy to make. For example, when a company sells products of small size, whose price is lower than 10€, Amazon offers the service "Products small and light", but to access it, the seller must comply with a series of basic requirements.
Returns
Returns mean losses, and on online purchases may pose a greater risk, because the buyer can't feel the product before making the purchase. In these cases, Amazon will charge a fee to the seller for the processing of the return, that will be similar to the previous rate.
As you have seen, there are several factors to take into account when making a decision for or not an account with Amazon FBA. In any way, you have the calculator Amazon FBA, which will provide guidance to know the amount to pay to Amazon for your products.
How to be a reseller of Amazon?
If you already know what products you want to sell on Amazon and are aware of how it works Amazon Seller, the next thing you have to do is register, by providing certain information such as the country, the type of business you have, as well as your personal and banking data.
Remember that there are 2 types of different accounts for you to choose the best seller professional and individual, although the greater part of the vendors tend to go for the professional account. However, if you are just starting, perhaps you want to test with the individual's account to go after the pro.
Be that as it may, follow these steps and you will become a good reseller of Amazon:
Create a list of products
If you want to add your first product, go to the "Inventory" tab, click "Add a product". Now you have to search for the product concerned, putting your name or adding your EAN code or bar code. When you search, the more likely it is to appear different options that belong to other competitors, you select the product that is to try and fill in the missing information. If there is no similar product you want to sell, create a new listing with the category and sub-category more accurate to put it to the sale from there, and fill out the information fields, with the title, the weight, brand, and so on.
Upload good images of the product
In this step it is essential to provide quality photos because it's the first in what will be fixed potential buyers. Make sure that the image has a good size and the product look good. From here we recommend that you invest all the time necessary to do so. That way, your products will be attractive and returns will be reduced. To make sure that the images of the products are right for you, photograph the product from different angles, add a background and soft trim the margins for the product to fit the entire image.
Put competitive prices of products
Set the price of each product is something that you need to meditate very well to boost the number of sales and positive influence on the return on investment. Before setting each price, take into account the costs of the product and the profit margin that you want to get. It is also important to analyze the competition, and that indagues to know what price they are putting them through your products or any items with similar characteristics. If users realize that the other seller sells the same product cheaper, we will buy it to him instead of to you. Much the same happens in the case of third-party vendors, outside of Amazon, which have their own online stores, therefore you will also have to compete with them.
Send out products on our own or do you handle Amazon
Once the user has purchased your product, Amazon will send you an e-mail, as well as a notification on your dashboard to seller. In the details of the order, you will have access to the data of the buyer for shipment within the period prescribed. However, you also have the option for Amazon to handle both manage the shipment as of the possible returns, which, as we have explained is the case of the service FBA.
Receive the income
In the online stores of its own, the payment gateway is linked to the seller's bank. However, users of Amazon will use the payment methods of the giant online, and also their payment gateways. In this way, Amazon will receive and manage payments received.
What is the positive? You don't have to configure any POS or put your bank details on the network. What is the worst? You not you will receive your earnings instantly, but you'll have to wait 15 days. However, since the customer can return the product once received, Amazon may withhold the sale until they have resolved the claim.
How do you send goods to Amazon FBA?
The service FBA Amazon will avoid headaches unnecessary-related shipments. Once hired, you will need to set your mind at ease by full, even your clients will be able to count on the service "Amazon Prime" to get free shipping through a subscription. For your part, you must send your product to their stores so that you can make the necessary arrangements and make deliveries faster.
It is very simple: to send your products to Amazon FBA, sign in to your account and create a plan of shipment. Specifies the product to send, and if it is "individual Products or packed in case". The individual elements are boxes that stored with different products, while packed in carton, each box contains the same product in the same amount.
In addition, make sure put the units that exist for each product and to create labels for glue them in the appropriate packages. When you fill in the shipment data, choose the company you want to pick up the package, and once Amazon receives it, will be available in the platform.
