Amazon is the largest e-commerce store that sells products across the globe. The platform provides its services in many countries to millions of customers. As the arrow in the logo indicates, it sells everything from A to Z. In order to help their vendors the company creates Amazon FBA. Now, What is Amazon FBA business? This article will provide you an insight into how Amazon works? How they manage and sell this much number of products? etc.
Actually, there are multiple people, stores, and companies that are selling their products on Amazon. This modern platform with the help of technology creates a win-win situation for everyone.
Usually, anyone can open an ID on Amazon with some terms and conditions involved. The person or a company then first hunt a product which they want to sell. Secondly, after product selection, they open an ID and decide on which market they want to sell to. It means which country. Then the vendor gathers inventory and has two choices to manage it himself or ship it to the Amazon warehouses. Here is when Amazon FBA comes.
What is Amazon FBA Business?
Amazon FBA or Fulfillment by Amazon means the vendor puts all of its inventory in the Amazon warehouse. In this way, Amazon provides them a number of services for free.
Basically, selling on Amazon is not that easy. This is because you are competing in the pool of markets having thousands of vendors and products. So it is very difficult to manage each and every process yourself. Moreover, processes like inventory and warehouse management, packing, delivery, return, stock management, sealing with after-sale issues, etc are not easy to handle.
So, Amazon provides its vendors with the facility to manage all these processes by themselves and for free. It means the vendors have to remain focused on the quality of their products and product ranking. Moreover, the vendor is also responsible for maintaining a handsome amount of stock at the Amazon warehouse.
Advantages of Fulfillment by Amazon:
This is called Amazon FBA Business. On the other hand, if you do all these processes by yourself it becomes tough for you to manage. Moreover, if you deliver from any other agency there will also be some delivery cost involved which increases the cost of the product. This makes it less competitive in the market. Additionally, for inventory management, you need to have staff, warehouse. You have to pay salaries, rent, bills, etc. This all adds to the cost of the product.
So, In the Amazon FBA business, you ship your product from the production facility to the Amazon warehouse. In this way, your delivery cost is a one-time cost on whole stock which is far less than when you send them one by one. Secondly, delivering through Amazon takes too little time when compared to self-delivering the product. Thirdly, Amazon gives preference to those vendors who are doing Amazon FBA. Fourthly, if you send products one by one as per orders there are chances of misplacement, breakage, late delivery, custom clearance issues, etc. Dealing with them on daily basis is a hell of a task.
That’s why Amazon FBA is always the best way to do business on Amazon. In terms of displacement, breakage, etc, Amazon takes responsibility and reimburse your amount. What else you want.
Actually, this way of doing e-commerce business is easy for Amazon itself to handle. Being a well-established company and having one of the largest warehouses in the world, they can easily do these processes. They have the technology to handle, people to work with, resources to handle these complex business issues. So leave all these matters to them and work for making your product better, in stock, and high ranked.
Hope you understand the concept of Amazon FBA Business. Further, if you have any queries, you can comment below.