What is Amazon FBA and what is the benefit as a seller?

What is Amazon FBA and what is the benefit as a seller?

With more than 300 million users worldwide, the Amazon platform is the undisputed leader of e-commerce sites. In addition to its notoriety, the platform offers professional sellers the benefit of Amazon FBA to promote and sell their products.

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What is Amazon FBA?

First of all Amazon FBA translated as “ Fulfillment by Amazon means in simple terms “Fulfilled by Amazon”. This is to give access to any professional seller to the Amazon platform in order to delegate storage, delivery and after-sales service tasks. This is a service offered by Amazon to all e-commerce sellers. By using FBA, each company benefits from the most efficient logistics for its products. Indeed, the team in charge of stocks and order preparation ultimately only has the task of preparing the products by labeling them and then sending them to Amazon so that the orders can be processed. A great time saver. With warehouses located all over the world, Amazon receives products from professional sellers. Once the products have been received, sorting is carried out and a stock is created. Upon receipt of an order, Amazon takes care of processing it on behalf of the seller. The platform also manages product returns, refunds and all questions asked by customers about items. E-commerce sellers collect the proceeds of their sales minus the commission due to Amazon approximately every two weeks directly into their bank account.

What are the benefits of Amazon FBA?

The consequence for a professional seller of joining the Amazon FBA program is that he benefits from a total optimization of the sales process regarding its e-commerce site. He can thus devote a significant part of his time to developing his activity.

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This is first and foremost a huge time saver for every professional seller. Every step from storage through after-sales service to shipping is fully managed by Amazon. No more teams should be dedicated exclusively to these tasks. The seller can therefore devote himself entirely to other activities and to developing his business.

Undoubtedly, using Amazon FBA brings the seller world-renowned quality. Indeed, Amazon being the leader of e-commerce sites, its reputation and recognition by consumers are well established. The professional seller therefore benefits from Amazon’s brand image with its customers.

One of the significant advantages is also reflected in the very fast delivery service. Wherever the customer is located, the platform finds the best solution to ensure fast delivery close to home. The professional seller therefore does not have to manage this step. Everything is implemented by Amazon to ensure optimal delivery.

Then, the decisive criterion to choose Amazon FBA is the cost of shipments can be reduced. Indeed, today, consumers like to buy, but receive their product as quickly as possible. It is even an element that can influence their act of purchase. Too long a delivery or too high costs can considerably slow down the act of purchase. Through Amazon FBA, customers have the option of opting for free 2-day shipping on select products. The e-commerce site therefore has an opportunity to provide its customers with an additional advantage.

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The professional salesperson also saves substantial time by eliminating the management of his after-sales service. Indeed, customers benefit from this service offered directly by Amazon. The platform’s after-sales service being renowned for its responsiveness and quality, this offers consumers not least added value. The latter can thus obtain a rapid response either by telephone or by e-mail and can have access to the service 24 hours a day.

Finally, any e-commerce site wanting to take advantage of Amazon FBA can significantly improve its customer experience. Amazon, with a well-established reputation, represents a guarantee of quality for customers. Choice of shipping, delivery options and reliable after-sales service are all aspects that appeal to your customers when they are ready to make a purchase.

How to become an Amazon FBA seller?

There are a few steps to follow to become a seller with Amazon FBA, but absolutely no complicated steps are required.

At first, the professional seller must create a seller account on Amazon by logging in to Seller Central to set up the configuration. As for any creation of an online account, the seller must indicate certain basic data such as information concerning his company, his e-mail address, the name of a contact to be reached, etc. It is also necessary that the company communicates a credit card number in order to allow the payment of sales by Amazon.

Once this step has been completed, the seller must create your offer by listing all the items he wishes to sell. He must somehow carry out an inventory to then integrate his products into the Amazon catalog. It is important to indicate during this step the delivery method “Fulfilled by Amazon”. This option generates a cost of approximately 40 euros per month plus a commission varying according to the product sold.

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Next, Amazon tells the seller the instructions concerning the shipment of the products and the seller must send them directly to the distribution center. Amazon obviously provides all item identification labels to ensure quality tracking.

As soon as the products are received by Amazon, they are immediately put online on the merchant site. Seller’s products are, just like Amazon’s, subject to the Amazon Prime loyalty program. Consumers can then view the products online and purchase them. As soon as an order is placed, Amazon takes care of its shipping and sends the payment to the seller a few days later.

It then remains for the company to regularly monitor its sales and continue to develop its activity in a serene manner.

By integrating the solution offered by Amazon FBA, any merchant site is likely to see its sales increase, but also to be able to gain visibility on the web. By opting for this platform, e-commerce sites can benefit from a whole range of advantages allowing them to promote their products and above all to create a relationship of trust with customers.

To go further, download this free guide and examine e-commerce trends in France and discover best practices and advice applicable to the online sales sector.Guide to e-commerce

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