Amazon FBA (Fulfillment by Amazon) is a fulfillment service offered by Amazon that allows sellers to store their products in Amazon’s fulfillment centers, where they are packed and shipped to customers on the seller’s behalf. To become an Amazon FBA seller on Amazon, you will need to:
- Create a seller account: Go to Amazon’s seller central page and click on the “Start selling” button to create a seller account. You will need to provide information about yourself and your business, as well as agree to Amazon’s terms and conditions.
- Set up your product listings: Create a listing for each product you want to sell on Amazon. You will need to provide information about your product, including its price, dimensions, and weight, as well as a product description and images.
- Prepare your products for shipping: Amazon has specific guidelines for preparing products for shipping to its fulfillment centers. You will need to package your products in a way that meets these guidelines in order to ensure that they are accepted into the FBA program.
- Enroll in the FBA program: Once your seller account is set up and your products are prepared, you can enroll in the FBA program by going to the “Fulfillment by Amazon” section in seller central and clicking on the “Enroll now” button.
- Ship your products to Amazon: After you have enrolled in the FBA program, you will need to ship your products to one of Amazon’s fulfillment centers. Amazon provides detailed instructions on how to do this, including information on labeling and packaging your products.
Once your products are stored in an Amazon fulfillment center, Amazon will handle the fulfillment and shipping of your orders to customers. You will be responsible for managing your inventory and customer service.
Comparison of FBA and FBM
FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) are two fulfillment options available to sellers on Amazon. Here is a comparison of the two:
- Fulfillment process:
- With FBA, Amazon handles the storage, packing, and shipping of your products to customers.
- With FBM, you are responsible for handling these tasks yourself.
- Inventory storage:
- With FBA, your products are stored in Amazon’s fulfillment centers.
- With FBM, you are responsible for storing your own inventory.
- Shipping speed:
- With FBA, your products are shipped to customers from one of Amazon’s fulfillment centers, which are located throughout the United States and internationally. This can allow for faster shipping times for customers, especially for those located near a fulfillment center.
- With FBM, shipping times may be longer because the products are being shipped from your own location.
- Returns handling:
- With FBA, Amazon handles the process of returning products to you if they are returned by customers.
- With FBM, you are responsible for handling returns yourself.
- Fees:
- FBA has a per-unit fee for storage and fulfillment, as well as additional fees for services such as returns processing and removal of unsold inventory.
- With FBM, you only pay a referral fee on each sale, but you are responsible for all other costs associated with fulfillment, such as shipping and returns processing.
- Eligibility:
- Not all products are eligible for FBA. Some products, such as hazardous materials or perishable items, may not be eligible for the program.
- With FBM, you can sell any type of product as long as it is legal and complies with Amazon’s policies.
In deciding between FBA and FBM, sellers should consider factors such as the size and weight of their products, the location of their target market, and the resources they have available for fulfillment and customer service.
