Amazon is a revolutionary actor in what has been this new trend of ecommerce in the world economy, and it is that when talking about shopping online, the first thing we think of is the e-commerce giant, all this thanks to the impact it has had since its foundation.
However, this company is constantly evolving, offering its customers different options such as streaming TV, book sales, original products and the new Amazon FBA, a model that will undoubtedly attract many people around the world.
In the next note, you will know what Amazon FBA is about and how it works, what are their commissions and fees and how much does it cost to sell under this modality, you will also learn to start using Amazon FBA, as well as everything related to its sales process, and of course you will have access to some tips for selling on this platform.
What is Amazon FBA?
Also know as “Fulfillment by Amazon”, It is a service that the company offers its sellers, where they send their products to a warehouse of the corporation, they will remain there until they can be sold through the platform. That is to say, the company will take care of the shipment, returns management, in addition to providing a good service to customers, putting at your disposal all the necessary logistics that the process implies.
How does Amazon FBA work?
In this modality you as a seller only have to send the products you want to sell to Amazon, and the company takes care of the rest, It is a procedure where you only have to ensure that your creations are of quality and meet the established standards. However, there are a series of elements that you should know and that they are part of the process, it is the way in which everything is carried out, from when you send the product until it reaches the hands of the buyer.
Amazon FBA works as follows:
- Ship the products that you want to sell to Amazon.
- The company takes care exhaustively of classify and store your merchandise.
- Wait for the sale to happen on the platform.
- After Amazon takes care of shipping the product to the buyer.
- Next the corporation follows up and in order to make sure that the customer is satisfied or if you want to do something return.
- Payment is made correspondent.
Commissions and fees How much does it cost to sell on Amazon FBA?
amazon fba, has various rates, all of them depend on the type of product, and the sale that you manage to make, these percentages can be adjusted, but everything will vary according to the demand and the time in which you are selling the product. Now, you must be very clear about what these commissions and fees are, since otherwise It could cause confusion when paying.
The commissions and fees to sell on Amazon FBA are as follows:
- Registration as a seller: It is a fee of 0.99 euros for each sale that you manage to make, it is not a monthly payment, so you must be attentive to each income that you receive. Referral Fees: This rate will vary according to the category and the product that is being offered, they may vary, depending on the circumstances, the percentages that are handled range from 7% to 20% respectively.
- Logistics management fee: the value of this is the equivalent to the size and weight of the product, based on a previously established scale. Storage fee: It is directly linked to the storage of the products, in this sense it is important the time that the merchandise will be in the warehouse, the time of year, and the number of elements to store, so that in this way have a determined value of the rate respective.
- Other costs: everything related to the packaging, freight, withdrawal or returns of the products.
Learn how to get started on Amazon FBA
To enter this platform, you must start with the first step, which is to register properly as indicated by the system, for this you have two alternatives: through a basic or personal account, or through a professional account, both are very useful, but with certain requirements that make the difference in each of them. In this sense, the protocols to be followed are quite simple, with a procedure that will allow register in a few minutes.
To get started on Amazon FBA you must do the following:
Create basic account
Can use your personal account, or create an Amazon seller account, for this you must meet all the requirements for the process to be successful, and thus enjoy all the benefits available. It is quite simple to execute, and Amazon as a platform offers many comforts to all its users.
To create a basic account follow these steps:
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Enter the web
https://sellercentral.amazon.com/and click the button “Create your Amazon account”. - Enter the email address of the company or that of your account as a client of Amazon.
- enter the data of the credit card.
- attached government ID or DNI.
- Tax identification number and telephone.
- Add a bank account or virtual wallet so that Amazon can make the corresponding deposit for the sale of products.
Create professional account
From here you can sell your items in larger quantity, it could be said that it will allow you to be a provider of Amazon, method from which you will get more and higher income.
The procedure is similar to the previous one, with some business data, which must be correctly identified so that there are no inconveniences:
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Enter the web
https://sell.amazon.com/and click the button “Register” located at the top right. - Fill in the registration form correspondent.
- Insert all company or personal data, among which stands out country of origin, date of birth, DNI with its expiration date, fiscal address, postal code, and contact number.
- Information where you will receive your payments and credit card.
- Other data additional, such as example billing data, and taxes.
- Full name of the store.
Learn about the Amazon FBA sales process
To Vender in Amazon FBA, you must follow a series of elements that will show you the way For your product to be successful within the platform, in this sense, each step is very important and depending on the characteristics of the product, you must adapt it to what you really want to do. It is because of that amazon fba, has a very well structured sales process, so that customers can access this method easily and simply.
This process is as follows:
Find a product
You should look for a product that can be sold quickly, this with the aim that the merchandise last as little time as possible in the warehouse and thus save costs. On the other hand, selling the right product is synonymous with short-term profits, knowing how to reach the clientele with the article they need to meet their needs, and that you are being successful with your proposal within the platform.
buy it
Amazon handles all logistics, collection and money managementThey also provide that customer service that will somehow help users choose your product, over the many existing offers. The purchase process is quite simple, you just have to have the corresponding merchandise available, and thus your creations will be among the most requested.
Send it to Amazon
Ship your products to Amazon warehouses so that they are later distributed, the company will be in charge of packing them and leaving them ready in their respective packaging, so that they can be delivered at any time. When sending your products, amazon gives you the possibility of track them until they arrive on site, track inventory, and wait for clearance until they are available for sale.
set your prices
It’s necessary that keep a cost structure, where you include the manufacturing costs of the items in case it deserves it, raw material, and payment of commissions to the platform, all this calculation will make you define an adequate price for your products. Other aspects to consider They are the price of similar products, level of supply and demand, behavior of the competition, among others.
Tips to Sell More on Amazon FBA
There is no secret formula or magic wand that you can use to your sales on Amazon can increase exponentially, what you can apply are certain methods in which you can support yourself, and thus increase the profit margin. Well, then, you will see some tips, where you can see what elements can help you to be successful and sell much more.
The tips for selling on Amazon FBA are:
Stock Inventory
search do not run out of inventory, since this would be giving an advantage to the competition, therefore a permanent update is necessary, when your stock is reaching low levels include new merchandise. You can also offer variety, do not focus on a single product, as this is a way to create affinity with all customers, becoming the first option for them.
Advertise your products well
Create campaigns that they make known all your products, uses SEO positioning to have a better position in the search channels, Lean on social networks by sharing the link to your products and inviting your followers to purchase them. Good advertising can make your sales show an increase, and your merchandise reaches a greater number of people and a more varied and substantial market in terms of quantity.
Conduct a market study
Analyze in depth what the user really needs, and based on that, it offers products that can fill that gap that may exist in that market. It is also important have identified the niche on which you are going to work and offer the best articles. A good market study can be a determining factor, which means success on this platform, and an increase in the sales of your products.
Products
many experts agree that to be successful on Amazon, you must sell products that are already in high demand, For this reason, it is necessary to review trends constantly, in order to ensure profits in a short time and thus save storage costs. On the other hand, offer quality articles, and that have good comments from other users, they will fill you with prestige, and will make your creations highly sought after.
write a good review
Users want to know everything related to the product they are interested in, therefore, one Exact description of the merchandise is more recommendable, placing data such as weight, size, color, among other specifications. It is also important highlight all features and emphasize the benefits it can bring to customers, this is a way to attract many people to buy your products.