Come on, don’t be ashamed to ask.
What does FBA mean?
FBA stands for Fulfillment by Amazon.
There’s no doubt that Amazon has the most efficient fulfilment network on the planet. Now, how does FBA play in your would-be Amazon business?
With FBA, you will keep all your items in the fulfillment centers of Amazon, then they will be the one to pick the ordered item, pack it for you and ship to your customers. And it doesn’t end there. They will also take charge of customer service, or the after-sales service.
To put it simply, FBA will do much of the legwork for you. Now, who doesn’t want that? That will eradicate a big chunk off your to-do list, giving you more time to focus on what really matters the most — selling and promoting your products.
Now for budding Amazon Sellers out there, the next question in mind is — how much are the Amazon FBA fees? Now, this is no less than the planet’s biggest e-commerce network, you definitely want to know what’s at stake and you definitely want to be sure that you’re going to get financial gains.
Let’s do this one by one. First off, you need to be aware that there is what Amazon calls as a referral fee. A referral fee is basically the commission that Amazon gets for every product that you get to sell on their site. Normally, Amazon charges a flat rate of 15% or lower.
Bear in mind, that this payment is not necessarily needed in advance. Amazon takes this referral fee out of your Amazon account after you have sold your item on their platform.
Second, let’s find out how much you need to pay for your FBA — Fulfillment by Amazon as one of the Amazon sellers. If you are one of the FBA sellers, remember this — there is no need to pay for shipping, handling or packaging to ship your goods. As an alternative, the Amazon’s FBA staff will pick, pack, and ship your products for you.
Your FBA fee is charged to you and is usually set on the weight and the size of your item. As mentioned earlier, FBA can help you get rid of your headaches and help you ramp up your business.
Now, how does one get started with Fulfillment by Amazon or FBA? It’s as simple as 1,2,3. And throw in another step or two.
Finally, you need to know the costs for Amazon’s miscellaneous and optional services. Now, this part is only for a few sellers, but it would be wise to tackle this part as you will be paying for some of these fees if you are an Amazon FBA seller.
High-volume listing fee is for sellers who sell thousands. These high-sellers are required to pay a monthly fixed fee of $0.005 per legit ASIN. This is only for those who have 100K products on their list. If you’re a small seller, there’s nothing to worry about. These fees are usually deducted from your Amazon account balance or from your credit card.
Speaking of books, there are rental books service fees — those who rent textbooks must pay a five dollar rental book service fee for each textbook rental. These are deducted at the time of the sale and there’s no need to pay this upfront.
Okay, what are the advantages of FBA. Well, aside from eliminating your fulfilment woes and allowing your business to grow quickly, here are some valuable upsides of FBA:
With FBA, your customers get the trusted customer service with the Amazon tag attached to it. It means, FBA customer support can ensure that your customer needs can be easily met via phone calls or emails, night and day — at no extra charge on you.
For return issues — for products that have been ordered on the Amazon platform, FBA will manage all customer services linked to this. The Online Returns center provides customers with help and details should the need arise. Of course, there are policies one needs to follow.
Also FBA by Amazon is economical. For penny-wise folks out there, FBA proves to be cost-efficient. Shipping costs are already incorporated in your fees — with zero charge for the Amazon Prime Free 2-Day Shipping. Also free shipping applies for certain orders.
So why settle for something less. FBA Amazon will certainly give your money’s worth.
Share This Article:
Tell us where to send your free book