Fulfillment by Amazon (FBA) program is an advanced fulfillment network that allows sellers to store their products on Amazon fulfillment centers, and then their employees pick, pack, ship and provide customer services for the products. The procedure is quite simple; sellers send their inventory to Amazon's ultra-modern fulfillment centers accessible to both their local and global clients. Below is a simple step-by-step process that summarizes the details for getting started with FBA.

Step #1: Setting up an FBA account

Sellers simply have to add their Selling on Amazon account to their FBA accounts. For those who don’t have a Selling on Amazon account, getting started is free.

Step #2: Creating product listings.

Here, sellers are expected to add their products to the catalog. The products are added on by one either in bulk or by integrating the inventory management software with Amazon's API.

Step #3: Preparing the products

Before shipping the products, sellers ensure that they ready to be transacted online so that they are delivered safely and securely to the various customers.

Step #4: Shipping the Products to Amazon

Sellers create their shipping plans, engage partnered carriers at discounted rates, and ship and track their shipments to Amazon fulfillment centers. Besides, sellers can seek the guidance of Amazon’s online seller tools to effectively manage the shipping process.

After the shipment reaches Amazon, customers can now order the products. Consequently, Amazon ensures that Prime customers get fast, free deliveries on the products to the client's location. Also, all customers are entitled to free shipping on eligible orders. Additionally, with its 24/7 premier customer support, Amazon manages customer inquiries, refunds and the return of orders on its online marketplaces and returns concerning a seller's products.

Notably, sellers can send as little or as much as they desire. Whether small or large amounts of products is received, Amazon will establish a secure storage of the inventory so that customers get the right quality and quantity.

Ideally, to manage a business effectively, every seller needs to provide customer service, fulfill customer orders, source products, and improve sales while growing at the same time. Well, Amazon's FBA program is a service that ensures easier maintenance of all these business goals, missions, and responsibilities. 

Aside from receiving a service that makes sales services easy, saves time, and grows the business, what other benefits would sellers get from introducing their products to the FBA program?

Products sent to fulfillment centers undergo fast shipping and acclaimed customer services, which apparently grows seller’s business in both local and global markets. FBA introduces vendors' products into the online marketplace composed of millions of loyal consumers; hence, provide access to new customers.

Gaining positive feedback from customers is especially important, so if being organized is not strength, then don't take a chance on trying to do it all yourself.

Either hire an employee that can provide customer service, or outsource the entire process to the online retailer.

Negative customer feedback can lead towards the shutting down of your account, so your ability in managing the flow of your
business is a crucial factor in deciding whether to use their services.

Sellers’ products are eligible for Amazon Prime and free shipping on qualifying orders.

With FBA, the vendor's customers are eligible for Amazon Prime & Free Super Saver shipping. Therefore, customers can get the product shipped to their particular location fast and free. When sellers list their products with FDA, they become eligible to free shipping. As a result, Prime customers enjoy a FREE two-day shipping, and all Amazon customers are entitled to free shipping on eligible orders. As the competitive edge improves, a seller is likely to win the By Box. In addition, the FDA allows sellers to expand their territories; reach customers around the world without relocating and creating business branches in various locations. 

Implements Competitive pricing on products

For qualifying orders that are eligible to free shipping, seller’s FBA listings are sorted by price with the shipping costs excluded.

Allows the seller’s customers to access the online retailer's trusted customer support and return services.

The FBA program also manages customer service and return issues for all orders. Amazon will take care of all of all sorts of issues related to returns, including talking to the buyer to delivering a new product to them. Again, it displays listings on the products with the Prime logo; therefore, customers are always aware that Amazon deals with packing, customer support, shipping, and returns.

It is cost-effective 

Amazon's FBA program only charges sellers for storage space and orders they fulfill. Shipping costs are included in the Selling on Amazon fees. There are no extra payments required for Amazon Prime FREE two day shipping and free shipping on eligible orders. However, additional services that are optional may also require charges.

Sellers can fulfill orders from other channels

With the multi channel fulfillment, FBA can fulfill the dealers’ orders from other sales channels using their (sellers) inventory stored at various Amazon fulfillment centers. Notably, Multi-Channel Fulfillment provides sellers with fast, trusted shipping and fulfillment for their orders they make from other sales channels. Sellers manage their inventory through an online user interface, which allows them can direct Amazon to return an inventory to the fulfillment centers at any moment.

Sellers are assured of Storage Space

Irrespective of the quantity of the seller’s product, the FBA program ensures that the goods are safely stored. Sellers do not have to worry about overloading their warehouses or storing some product in their houses.

High sales Volume

Selling products on Amazon through FBA enhances an automatic qualification for Prime, a membership program that buyers are often happy about. Apparently, the access to prime subscribers is a direct ticket to getting higher sales volume. Besides, Amazon is a common marketplace with a solid name that buyers all over the world trust. Therefore, backing up a business with Amazon is likely to improve sales. 

However, aside from the lucrative sales opportunities that the FBA program is offering, there are a few cons associated with the program. The main disadvantage is the fact that not every product will be profitable to Sell with the FBA program. Notably, by implementing Amazon's Fulfillment Centers, buyers are bound to incur will be certain fees; the program is not offered for free. Using the FDA program to sell large, heavy and inexpensive products which require high storage fees will possibly eat the profit marginsFulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) program is an advanced fulfillment network that allows sellers to store their products on Amazon fulfillment centers, and then Amazon conducts picks, packs, ships and provides customer services for the products. The procedure is quite simple; sellers send their inventory to Amazon's ultra-modern fulfillment centers accessible to both their local and global clients. Below is a simple step-by-step process that summarizes the details for getting started with FBA.

Step #1: Setting up an FBA account

Sellers simply have to add their Selling on Amazon account to their FBA accounts. For those who don’t have a Selling on Amazon account, getting started is free.

Step #2: Creating product listings.

Here, sellers are expected to add their products to the Amazon catalog. The products are added on by one either in bulk or by integrating the inventory management software with Amazon's API.

Step #3: Preparing the products

Before shipping the products, sellers ensure that they ready to be transacted online so that they are delivered safely and securely to the various customers.

Step #4: Shipping the Products to Amazon

Sellers create their shipping plans, engage partnered carriers at discounted rates, and ship and track their shipments to Amazon fulfillment centers. Besides, sellers can seek the guidance of Amazon’s online seller tools to effectively manage the shipping process.

After the shipment reaches one of their warehouses, customers can now order the products. Consequently, Amazon ensures that Prime customers get fast, free deliveries on the products to the client's location. Also, all customers are entitled to free shipping on eligible orders. Additionally, with its 24/7 premier customer support, Amazon manages customer inquiries, refunds and the return of orders on Amazon marketplaces and returns concerning a seller's products.

Notably, sellers can send as little or as much as they desire. Whether small or large amounts of products is received, Amazon will establish a secure storage of the inventory so that customers get the right quality and quantity.

Ideally, to manage a business effectively, every seller needs to provide customer service, fulfill customer orders, source products, and improve sales while growing at the same time. Well, Amazon's FBA program is a service that ensures easier maintenance of all these business goals, missions, and responsibilities. 

Aside from receiving a service that makes sales services easy, saves time, and grows the business, what other benefits would sellers get from introducing their products to the FBA program?

Products send to fulfillment centers undergo fast shipping and acclaimed customer services, which apparently grows seller’s business in both local and global markets. FBA introduces vendors' products into the Amazon's online marketplace composed of millions of loyal Amazon consumers; hence, provide access to new customers.

Sellers’ products are eligible for Amazon Prime and free shipping on qualifying orders and 

With FBA, the vendor's customers are eligible for Prime & Free Super Saver shipping. Therefore, customers can get the product shipped to their particular location fast and free. When sellers list their products with FBA, they become eligible to free shipping. As a result, Prime customers enjoy a FREE two-day shipping, and all Amazon customers are entitled to free shipping on eligible orders. As the competitive edge improves, a seller is likely to win the By Box. In addition, the FBA allows sellers to expand their territories; reach customers around the world without relocating and creating business branches in various locations. 

Implements Competitive pricing on products

For qualifying orders that are eligible to free shipping, seller’s FBA listings are sorted by price with the shipping costs excluded.

Allows the seller’s customers to access Amazon's trusted customer support and return services.

The FBA program also manages customer service and return issues for all Amazon.com orders. Amazon will take care of all of all sorts of issues related to returns, including talking to the buyer to delivering a new product to them. Again, it displays listings on the products with the Prime logo; therefore, customers are always aware that Amazon deals with packing, customer support, shipping, and returns.

It is cost-effective 

Amazon's FBA program only charges sellers for storage space and orders they fulfil. Shipping costs are included in the Selling on Amazon fees. There are no extra payments required for Amazon Prime FREE two day shipping and free shipping on eligible orders. However, additional services that are optional may also require charges.

Sellers can fulfill orders from other channels

With the multichannel fulfillment, FBA can fulfill the dealers’ orders from other sales channels using their (sellers) inventory stored at various Amazon fulfillment centers. Notably, Multi-Channel Fulfillment provides sellers with fast, trusted Amazon shipping and fulfillment for their orders they make from other sales channels. Sellers manage their inventory through an online user interface, which allows them can direct Amazon to return an inventory to the fulfillment centers at any moment.

Sellers are assured of Storage Space

Irrespective of the quantity of the seller’s product, the FBA program ensures that the goods are safely stored. Sellers do not have to worry about overloading their warehouses or storing some product in their houses.

High sales Volume

Selling products on Amazon through FBA enhances an automatic qualification for Amazon Prime, a membership program that Amazon Prime buyers are often happy about. Apparently, the access to prime subscribers is a direct ticket to getting higher sales volume. Besides, Amazon is a common marketplace with a solid name that buyers all over the world trust. Therefore, backing up a business with Amazon is likely to improve sales. 

However, aside from the lucrative sales opportunities that the FBA program is offering, there are a few cons associated with the program. The main disadvantage is the fact that not every product will be profitable to Sell with the FBA program. Notably, by implementing Amazon's Fulfillment Centers, buyers are bound to incur will be certain fees; the program is not offered for free. Using the FBA program to sell large, heavy and inexpensive products which require high storage fees will possibly eat the profit margins. All in all, selling with FBA is a competitive advantage and one that is often recouped in pricing strategy and higher sales volume

If you are going to sell brand name products, such as apparel, you might need an invoice from the company
in order to prove that the merchandise is authentic.

For instance, if you plan to sell Calvin Klein dresses, you will need to be able to prove that you are buying the dresses directly from Calvin Klein.

One challenge that arises is that you will often be competing against the online retailer, since it has the option to source the same products that you are selling through its website.

I would recommend that you focus on closeout merchandise and clearance products, this way you will be buying your items at a cost that the mega online retailer cannot easily buy at.

For instance, if the regular wholesale price of a Tahari suit is $150, and you buy it as a closeout for $39, you will have a competitive advantage over anyone that purchases Tahari clothing through regular wholesale channels.

One of the most interesting ways to make money through Amazon is by doing retail arbitrage.

Retail arbitrage is the process of looking for discounted merchandise at stores, and then reselling it online at a higher price.

Keep in mind that you might decide to fulfill your own orders, this way you can save on storage and handling fees.

I would recommend that high volume items should be sent in, and slower moving items should be shipped directly by the seller, otherwise the storage costs can potentially eliminate any profits.

You can also search for drop shippers and resell their merchandise, but keep in mind that the most popular drop shippers are already known by thousands of sellers, and therefore there will be a tremendous amount of competition for their products.

Ideally, you might consider setting up an arrangement with an up and coming designer or brand, and become their exclusive online seller.

If you are ready to get started, or if you would like to ramp up your current business, I would like to invite you to visit my New York wholesale business, Closeout Explosion.