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How to build a business on Amazon FBA?

What is Amazon FBA?

FBA stands for “Fulfillment By Amazon”. It is a service industry that helps grow business. Amazon FBA takes care of receiving, delivery, customer support, sales return.

How does Amazon FBA work?

Wholesaler and Retailer have to register their business into Amazon FBA application/website. They then have to send products to the Amazon FBA center and after that everything like, receiving orders, delivering products, customer care support, sales return, etc. is taken care of by the center. In return, FBA takes a small proportion of profit as a commission.

How to start your business with FBA?

Ø  Step 1:- Set up your FBA account

Ø  Step 2:- Create a manifest of your products.

Ø  Step 3:- Prepare to transport your products according to requirements to FBA fulfillment centers.

Ø  Step 4:- Ship your products to FBA fulfillment centers.

 

What is the pricing plan on FBA?

Ø  Selling plan:- $0.99 per unit sold / $39.99 per month

Ø  Referral fees:- 8%-15% per unit

Ø  Fulfillment fees:- Depends whether you ship orders on your own or by FBA.

Ø  Other costs:- Depends on whether you acquire a premium account or long-term storage.

What are the benefits?

Ø  Listing your products on FBA, eligible for Amazon two days free shipping. It means your product is eligible to have free Amazon fast delivery.

Ø  Amazon is a trusted company, customers trust Amazon to provide good quality products and support/care 24×7. Therefore, indirectly customers trust your products and buy them.

Ø  Increasing sales day by day. FBA helps grow business scale enormously. There are around 2 million FBA sellers according to 2021 reports.

Ø  Amazon FBA is growing 10-12% at a stable rate every year, which indirectly states the chances of your business growth is about 10-12% every year.

Ø  Amazon FBA is cost effective. FBA charges according to per unit sales or per month depend on your plans.

We @Cloudploys provides you with facts and processed information on specific topics. #Amazon FBA is surprisingly covering the market of #Shopify as well. It will be an interesting competition between Shopify VS Amazon FBA. However, it is on you to decide whether to take your business to the next level by registering it in Amazon FBA or not.

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