Amazon FBA, How It Works: How Can Smaller Businesses Use Amazon FBA for sales success

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By STS Staff Writer On Mar 29, 2022

Ritz Momentum Releases Tips Advising Amazon Sellers on How to Start an Amazon FBA Business

Fulfilment by Amazon (FBA), also known as Amazon FBA, allows you to sell your products on Amazon. It is an all-in-one solution for sellers willing to sell to Amazon customers. With Amazon FBA, all you must do is ship your products to the Amazon Fulfillment Centers. The Amazon Fulfillment Centers carry out the actual task of storing and shipping your products to the customers. The Amazon Fulfillment Centers store your products in a warehouse until someone places an order.

How does it work?

When an order is placed for your product, the Amazon Fulfillment Centers pack, ship, and deliver your product to the customers. The most amazing thing about using Amazon FBA to sell your products is that the Amazon Fulfillment Centers give your products the Prime Badge. Not only that, but they also offer customers same day or next day delivery to the Prime members. Along with delivery, they are also responsible for handling customer support queries and returns of your products.

How to set it up?

Here are some of the basic steps which you must follow to set up Amazon FBA: –

To use the benefits of Amazon FBA, you need to primarily register yourself as a seller on Amazon. After registration, you can complete your seller profile from Seller Central. You can upload the details of your business on Seller Central itself.
Being a seller on Amazon, you will be required to list your products on Amazon. Once you become an accepted seller on Amazon, you can join Amazon FBA. Amazon FBA will ask you to give additional details about your business.
You will then be told to list an Amazon Fulfillment Center as your Additional Place of Business (APOB). Once you have done that, you are free to safely pack and transport your products to your chosen Amazon Fulfillment Center.
There are certain shipping and routing requirements and packing guidelines laid out by Amazon which you are supposed to strictly adhere to.

Once your products reach the Amazon Fulfillment Centers, customers can place orders for your products, and Amazon will directly deliver to them.

How can smaller businesses use Amazon FBA for sales success?

Small businesses comprise a significant part of Amazon’s inventory. Several small businesses worldwide make use of Amazon FBA to sell their products. Why would small businesses use Amazon FBA when they can themselves do all the work? Well, who would want to do all the work when they can get it done for a minimal part of their profits? Small businesses have discovered that the reach offered by Amazon for their products is unbeatable. Most small businesses could not have devised marketing strategies that will drive more sales than using the Amazon platform. Even if they come up with an excellent strategy, they lack the funding to implement it. But with Amazon FBA, Amazon makes all the investment for marketing and analytics. Amazon Fulfillment Centers handle all the grunt work such as packing and shipping the products, and all small business owners have to do is sit back and relax while they make a fortune out of their products.

Examples of brands that have been successful with Amazon FBA

Here are examples of two prominent brands who owe their success to Amazon FBA: –

Protecta

Protecta is an Indian brand that sells bags and backpacks for technological products. Protecta had faced a huge meltdown when their online retail business tanked since the e-commerce platform was paying them their returns. On the verge of closing down, Protecta decided to give Amazon a try. After adopting Amazon, Protecta went from a single piece order to a national sell of technological goodies. Protecta informed that their business grew by 200% since they started using Amazon FBA to sell their products. They are soon going to enter the international market to sell their products internationally through Amazon.

Embee Enterprises

Embee Enterprises started as a small business in the capital city of India. Embee Enterprises was manufacturing electronics such as DVD players, VCD players, radios, etc. Even with superior quality than Chinese products, Embee Enterprises could not sell their Tronica products in the Indian market as they were told their rates are higher than that of Chinese products. But not bowing to the society, Embee Enterprises gave Amazon a try. They were surprised to see the tremendous growth their business made just in a few months. They were able to get numerous customers for their Tronica electronics, but they also launched several accessories and gift products that were given enormous response.

With the rapid pace at which Amazon is growing, small businesses worldwide can certainly leverage this opportunity to be listed under Amazon FBA and get access to a wide range of customers.