Individual sellers and companies can use Amazon's Fulfilment By Amazon programme to place their products on the website, which are then offered for sale. From start to finish, Amazon handles all parts of the sales process. Amazon refunds the seller a portion of the profit shortly after the sale is completed.
A retailer must pay Amazon a fee for Amazon to manage its business.
The FBA programme is quite easy to understand, and the Amazon website explains step-by-step how to use it. Keep in mind that sellers make less money than if they did everything themselves, as Amazon handles all parts of the business, including advertising, marketing, packaging, shipping and communication.
The Amazon FBA programme is associated with a lot of fees. After all, you are not only responsible for storing your products, but also for packing them and transporting them to your customers. If you have a low-cost product, Amazon may be able to make more money on the purchases than the seller. There have been cases where sellers have lost money on sales by using the FBA programme.
3 important points to make sure you make money with every sale:
1. make sure that you select products that are similar to those that are frequently and profitably sold on Amazon. Create a unique offer that stands out from the competition, e.g. a discount or bonus product in addition to the main item. You can also design your own packaging to stand out from the competition. Create a distinctive title to reduce the likelihood of price matching.
2. select products that are frequently searched for. Create a list of some popular keywords for Amazon bestselling products. How many of these items contain the term you are researching? Is the keyword mentioned in their titles? Use common keywords in the product name without violating brand names or brand restrictions.
3. choose lightweight items because the company will charge you for the space your products take up in the warehouse and the weight of each shipment sent to customers.
You may find that using the FBA programme is more expensive than doing all parts of the business yourself. However, you can delegate these tasks to Amazon, freeing up your time for more profitable activities such as sourcing new items or expanding the range of your current popular products into additional advertising space.