Amazon is one of the biggest E-Commerce service providers and online selling stores since 1994. Ever since coming into business it has been serving its purpose and satisfying millions of customers and sellers around the world, contributing to its expansion.
To serve the very purpose of effective E-commerce, Amazon came up with a new for their associated sellers to save their time, grow their business and make them money. This was named FBA’ (Fulfillment by Amazon). You can use FBA to sell a number of products including books. There’s a fairly simple procedure to selling books on FBA. I will guide you step by step on how to get started on FBA to sell books.
Step 1: Sign up for Amazon.
Step 2: You send your books to the state of the art fulfillment centers by Amazon.
Send your books to one of the many fulfillment centers located near your vicinity as inventory.
You can also manage your inventory from the manage inventory’ page and specify the items from your inventory to be included in the FBA.
Step 3: Amazon stores your products while updating your inventory.
Your books are stored in Amazon warehouses and sort them using their integrating tracking system.
Step 4: Your products are displayed online for the customers to order.
Your books are displayed with respect to their prices.
Step 5: Your products are delivered to the customers after packing.
Amazon allows customers to maintain track of the order as well as customer services.
This process is easy to go through and saves you a lot of time. With the ever growing market needs, you can grow your book-selling business to a global scale using FBA. This is one of the biggest advantages that FBA offers you. If you are a book seller, FBA offers you a greater number of customers. There are some things you should know before trying Amazon related to the costs incurred.
Amazon will charge you for storage, fulfillment, transportation and customer service. The costs are pretty fair compared to the service provided. There have been frequent changes in the services provided. Amazon just launched its latest fee structure effective from February 22nd, 2017 to be used till the end of current year.
The charges for using FBA are as follows:
1: Order-Handling, Pick and Pack, and weight handling fees (Per unit)
For 1 lbs standard size: $2.41
For 1 lbs large size: $2.99
For 1 to 2 lbs standard size: $4.18
For 1 to 2 lbs large size: $4.18 + $0.39/lb above the first 2 lbs
2: Monthly Storage Fees:
For a standard size item: $0.64 per cubic foot.
3: Inventory Placement Charges:
$0.30+$0.10 per pound above the first two pounds
These prices are updated on a quarterly or an annual basis and you need to keep them in check if you wish to use FBA. For more price related information regarding FBA, you can visit this link: https://www.amazon.com/gp/help/customer/display.html?nodeId=201648210&ref=asus_fba_pricing_feesaccordion&ld=NSGoogle
Moving on to the challenges that you might face, one of the most popular and annoying messages that book sellers on FBA complain about is the ASIN (Amazon Standard Identification Number) Quality Limit. Let me explain to you what the ASIN Quality Limit is. According to Amazon:
This means that Amazon has reserves the right to reject your inventory that has low customer demand and is already largely available in quantity on their warehouses. It’s basic business. But what some of the book sellers have noticed is that some of the ASINS that were rejected had a good market potential and sales ranks. Some of these ASINS were not even available in stock at all. This problem arose for the first time in the mid of 2016 and the limitations have not been removed since. But do not let this hold you back. This is an opportunity for new book sellers to diversify in.
The fault lies in the method that third party sellers have adopted. These limitations are there so you do not put another copy of Fifty Shades of Grey’ in their warehouse because let’s face it, that is a horrible business technique and the book might not even sell after the movie. The fault lies in the method that third party sellers have adopted. These limitations are there so you do not put another copy of Fifty Shades of Grey’ in their warehouse because let’s face it, that is a horrible business technique and the book might not even sell after the movie.
You cannot just stock the warehouses and get angry when Amazon limits your ASINS. This is an opportunity for new book sellers to put good books in the warehouses, in very simple terms, those that are high in demand and will go for a considerable amount of profit. So, choose the books you put in the fulfillment centers wisely even though the storage costs are very favorable and you might want to move your pool table there that your wife does not let you keep, don’t do that!
For someone who is looking to permanently start a business through book-selling on Amazon, I would like to suggest that you consider a more permanent fix to this. The business costs might be low but in the end, limitations like these will probably drive your sales and sales ranks down, sometimes even the most popular in-demand books might not get accepted because the Amazon warehouses are already flooded with those books and it is not feasible for Amazon to accept anymore. But this is a good solution for a one time or five time stock selling but do not consider this a permanent fix.
From the viewpoint of an entrepreneur and a businessman, I would point out that the free market solutions might drive the business costs up and it would not remain beneficial for any third party seller. But on the other hand, there are some book sellers on Amazon that are earning a six figured income through this very same FBA because they know the simple concept of Supply & Demand’. If you are ever looking for an expert book seller to follow or talk to, try http://thebookflipper.com or Nelson Books which was one of the top book sellers on Amazon.