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Amazon FBA: How to earn money by selling products online
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Amazon FBA is one of the most popular ways to earn money by selling online. Here is everything you need to know about this service by Amazon!

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Amazon is undoubtedly the biggest online shopping platform in the world. It is the first word that comes to our mind whenever we need to buy something, be it apparels, home appliances, tools, healthcare – you name it. However, the use of Amazon is not restricted to buying things. With the help of Amazon FBA, you can earn money by selling products too. More than two million people from all over the world are currently selling through this service. Due to the current pandemic situation and the resulting lockdown, many people have lost their jobs. We are being forced to make use of the opportunities provided by the Internet. Amazon FBA is one of the best ways to generate an income by working from home. 

Amazon FBA or Fulfilment by Amazon, offers a platform where you can list down any items that you want to sell. It could be something that you made yourself, bought in bulk or a product that you no longer require. You just need to register for the FBA program and put the properties up for sale. Amazon will take care of the shipping and delivery at an affordable price. Amazon FBA has more than 300 million users from all over the world. Just in the United States, there are around 90 million Amazon Prime Customers. It is estimated that more almost half of all the transactions on Amazon are made through third-party sellers. 

Moreover, 66 percent of the leading 10,000 sellers use Amazon FBA. The products that you sell through Amazon FBA are mostly utilized by the brands that are exclusive to Prime customers. It leads to more income since Prime customers spend around 1300 dollars on Amazon every year. You can also create advertisements using the Amazon Marketing Services to make sure that your products get maximum visibility. Overall, Amazon FBA takes a lot of load off your shoulders so that you can focus on building your business. 

 

The working model of Amazon FBA

Amazon FBA works in a very effective way that delivers benefits to both parties. Amazon handles all the problematic tasks while you can earn money at the tip of your fingertips. To become a seller, you need to be enrolled in the Amazon FBA program. You can send the products that you want to sell to the Amazon warehouses. After you tell them the kind of products you are looking to sell, Amazon will give you the information about the specific warehouse that you should mail it to. It will be then stored safely for a particular storage fee. If the item gets tampered with or damaged by any chance, the Amazon reimbursement policy has got your back.

After you have the commodities, it needs to be listed on the Amazon website (1), where the customers can view and order them. When your product receives an order, Amazon performs the packing, shipping, and delivery while you receive the profit. They also carry out the whole transaction for you, including payment and update of your stock. You can easily track the order and view its status through Amazon FBA. Amazon’s excellent customer services make sure that your buyer is delighted with the item. Any returns or inquiries from the customer are also handled expertly.

Amazon does charge a fee for the entire process, which covers the cost of shipping and customer service. Your sales and profits are calculated every week, and Amazon FBA directly deposits it in your bank account. You can improve or modify your products based on the feedback of the customers. The refined shipping and fulfillment services make Amazon FBA the best of it’s kind. You are sure to earn more revenue through the sales from Amazon Prime customers as they expend more money with Amazon.  

 

Prominent features of Amazon FBA

The highly satisfactory customer experience and efficient logistics are one of the few factors that make Amazon FBA incredible. People all over the world are using Amazon FBA to sell their products and earn profits easily. With more people taking their business and sales online, small merchants can reap the most benefits from the services of Amazon FBA. Furthermore, the large number of Amazon’s hungry customers increases your chances of sales.  Here are some advantages of Amazon FBA in detail.

  • They take care of the logistics and shipping. Setting up a shop and selling your products requires a lot of time and effort. When you have an extensive collection of merchandise to be sold, the delivery part can become messy and complicated. You may even have to spend a share of the profits back into the business for this reason. With Amazon FBA, you can sit back and make the deals while they complete this task for you.
  • You get discounts on the shipping charges when you send your product to the Amazon warehouses. This privilege is made possible with the help of Amazon’s tie-up with many shopping carriers and logistics agencies. This gain also extends to the customers who can avail free shipping. Besides, the prime customers are given a two-day shipping option when they buy the Amazon FBA products.  
  • Amazon FBA executes the return procedures without causing you any hassles. Every time a customer has a question or needs to return an item, it is completed by Amazon at the cost of a returns processing fee.
  • The excellent customer service of Amazon FBA is another reason to depend on them. The service personnel is available 24/7 through chat, call, or email. 
  • Amazon FBA removes the expenses of setting up a shop. You no longer have to be concerned about owning a warehouse or running out of storage space. The repository of Amazon FBA has a potentially unlimited storehouse capacity. 
  • The delivery services of Amazon makes sure that your customers get the products in the shortest time possible. 
  • Amazon FBA also has collaboration with other Fulfillment service channels which you can use to sell your products. 

 

Your responsibilities while using Amazon FBA

Although Amazon looks after all the troublesome parts of selling, gaining maximum profits is based on the efforts on your behalf. Here are some of the elements you need to supervise while selling through Amazon FBA.

  • You must select products that will be of demand. You need to make sure that the items you put up for sale will be bought by the customers rapidly since Amazon FBA charges a storage fee. If it remains in the warehouse for a long time (more than six months), the chances are that your profit will be very less. 
  • Make sure that you do not run out of stock. It is recommended to keep a constant watch of the inventory so that you may restock the commodities whenever required. 
  • You will have to lead the marketing and advertising aspects of your sales. After you list the item on Amazon FBA, it is your responsibility to make sure that the product reaches more potential buyers. There are more than 350 million products available on Amazon in which your product might get drowned. However, if you are selling a commodity that belongs to a reputed brand, it will probably sell on its own. 

 

How to improve your sales on Amazon FBA

Although you only need to take care of a few aspects of selling, it might be an arduous responsibility too. Read on to learn some tips which will help you to become a profitable seller on Amazon FBA.

  • Take a look at the bestsellers and possible competitors on Amazon FBA before you start selling. This will help you to get an idea about the type of products that are profitable. You do not necessarily have to copy them or try to compete with them, but it will surely give you inspiration.
  • Try to embrace every step on the way towards becoming an established seller on Amazon FBA. Every great salesperson had once started small, so take small steps towards achieving success. You do not need hundreds of products in the initial stages of your business. Having a small, organized group of products is also easier to manage and sell. Add in more products gradually as your sales grow. 
  • Becoming a successful seller on Amazon FBA may not be a simple task, but it can be vigorous if you are able to build a brand. Instead of depending on other brands, work to establish a reputation of your own. Stick to the quality and never let down the customers who trust you. You must understand your target buyers and create products accordingly. It also helps to work on a unique style in case of packaging and offers. 
  • Make use of SEO techniques in the best possible way. Amazon FBA works a lot like a search engine, so you need to follow certain rules to make your listings appear on the top of the pages, thus attracting more users. 
  • The only way you can interact with your buyers is the question and answer section. You must take the time to answer any doubts or concerns that the users may have. Be attentive and polite as it can establish genuineness with them. Even if they have not yet purchased the product, answering the questions will increase their engagement with the listing. A brilliant trick is to request your friend to post a question and reply to it. When the customers see that a question has been taken care of, they will realize the loyalty of your brand. 

 

How to make sure your products are selling 

You have to be cautious when selecting your commodity. Make sure that they have a probability of being sold easily so that you will not have to pay for the storage fees for a long time. Here are a few tactics that will help you move your items effortlessly.

  • Products with high rank will be ordered quickly, but low ranking products will have very few competitors. Taking a look at the sales rank can give you an idea about what item to sell. Based on the position, you can list your products for fairer business.
  • If there are too many items similar to yours, your chances of getting a customer to order from can be slim. The promising solution is to bundle your articles to create a unique listing. For example, if you are selling watercolor paint, combine it with a set of brushes that would attract people. This listing will show up when people search for the watercolor paint. Since you are the only seller offering that particular combination, it will undoubtedly win you more buyers. 
  • You can optimize your products for the search engine by researching the type of keywords that people use to search for products. You must try to include these keywords as much as you can in your product’s name and description. On Amazon FBA, you can use around 250 words, but it is not advisable to create a very long title. Amazon can even suppress the listing if the title is extremely lengthy.   
  • The images of your merchandise play an integral part in attracting buyers since it is the primary element that they see. According to the rules of Amazon FBA, you can only select a basic image of the product as the main one. You can also put in up to eight additional pictures which give extra data about the products. The integrity of the images can make or break your odds of receiving orders. Adding pictures from different angles and including close-ups will make your listings look more authentic.  
  • Put in more details about your products in small bullet points. When a potential buyer visits your listing through Amazon FBA, the first thing that they look for is the short bullet points that will give them a clear idea about your item. Give them all the essential details that would convince them to order your product. Give emphasis to the benefits of your commodity and in life answers to all common concerns that the past customers may have had.
  • Try and get your buyers to post reviews on the listing page. When customers take a look at your products, they will surely look for reviews to know the experiences of real buyers. People are more inclined to order your products when they see that many others are satisfied with it.

 

Drawbacks of Amazon FBA

Amazon FBA is the most popular platform to earn an income by selling online. Nevertheless, it does have some drawbacks which might be a challenge for few. 

  • The cost of storage fees might exceed your profit if your product remains in the Amazon warehouse for too long. You need to make sure that it is quickly sold out so that you do not have any unnecessary expenses. 
  • The preparation of products can be complicated since Amazon FBA requires many specific regulations. The packing, labeling, and shipping of your commodities to the Amazon FBA warehouse should be done without a fault. 
  • Although Amazon FBA allows you to keep track of the inventory, it might become a problematic duty. You may not always receive the updated information regarding your stock.
  • The management of sales tax can also be overwhelming when selling through Amazon FBA. 
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Nidhia Sebastian is an English literature graduate who looks forward to a career that complements her passion. Her never-ending love for language has brought her to creative writing. Having an open heart to knowledge is what leaves her with a thirst to explore the world. She believes in living life to the fullest and hopes to convey the same enthusiasm through her words.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Nidhia Sebastian
Nidhia Sebastian
Nidhia Sebastian is an English literature graduate who looks forward to a career that complements her passion. Her never-ending love for language has brought her to creative writing. Having an open heart to knowledge is what leaves her with a thirst to explore the world. She believes in living life to the fullest and hopes to convey the same enthusiasm through her words.
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