So, you’re interested in selling on Amazon and want to know if Fulfillment By Amazon (FBA) is right for your business?
Here’s how Amazon FBA works, how it can help grow your business, and the pros and cons to help evaluate if it’s the right fulfillment method for your brand.
“Brands and retailers can essentially outsource the ‘heavy lifting,’ the warehousing, logistics, and returns — to Amazon with the FBA program. Your catalog, sales volume, and price margins will ultimately decide whether Amazon FBA is a logical fit for your brand.”
-Meghan Andrade, Marketplace Channel Analyst at CPC Strategy
What is Amazon FBA?
Fulfillment By Amazon (FBA) is an order fulfillment solution for retailers that offers storage and distribution of products through Amazon’s global supply chain and distribution network.
Amazon offers this turnkey service to retailers to help them scale their business through warehousing, fulfillment, and distribution of their products — at a fee, of course.
Retailers that choose to use Amazon FBA enjoy many benefits like having an extensive distribution network and the prized FBA logo on your product detail page that customers have come to trust.
Not only do retailers benefit from the storefront and exposure of selling their products on Amazon, but they also benefit from the scalability and best-in-class global logistics capabilities that Amazon has become known for.
One of the prime reasons many businesses apply for Amazon FBA is that it allows them to rely on Amazon as their logistics partner, rather than having to create their own fulfillment process or search for a third-party service.
How Does Amazon FBA Work?
1. Application and Setup
You can apply for Amazon FBA within Amazon Seller Center.
2. Ship Your Products To Amazon’s Fulfillment Centers
“Whether its seller fulfilled prime or fulfilled by Amazon, the key here is the Prime badge. The Prime badge and fulfilled by Amazon sticker can boost the velocity of your products because customers trust these services.”
-Jeff Coleman, VP of Marketplace Channels at CPC Strategy