SellerApp - What is Amazon FBA & How does it Works?

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What is Fulfillment by Amazon (FBA)?

FBA or fulfillment by Amazon is a term of significance to sellers on Amazon. by Amazon is a mode of retail which is being attempted by Amazon and is possible for sellers to avail. FBA can have two key roles to play in your business. For a starter in online business, FBA can serve as a learning ground. FBA would help the newer merchant important skills in trading and logistical precision. The skills would enable the merchant, in the long run, to make decisions based on the earlier knowledge which can be attributed to the holistic system that Amazon fulfillment is. Secondly, FBA can also serve as a complimentary to your product business where the retail portion of a seller’s business can be handled by Amazon. This ensures larger profit and less logistical burden.

How does FBA differ from FBM?

While FBA is fulfillment by Amazon, FBM is mode of fulfillment where the seller or the merchant themselves takes care of the chain from inventory to fulfillment themselves. The primary difference, therefore, is between the modes of how the product reaches the customer. The other important difference is the FBA Fee that is levied by Amazon when one chooses the mode of FBA. This is however for the gamut of services like, storage, weighing, packing, transporting, and delivering. The seller has to scrutinize and come to an agreement as to which of the two would provide for a larger margin of profit. This is case specific and has majorly to do with the kind, scale, and amount of product that you are selling. The biggest selling point regarding FBA is that Amazon promises to take care of returns on its own and will also provide customer service to go with it. These are mostly overlooked factors, but also factors that make a huge difference.

What are the benefits of choosing FBA?

After much research, if the seller chooses to prefer the mode of Fulfillment by Amazon over fulfillment by seller themselves, the seller can tap into the Amazon FBA treasure which the company promises to come in terms of more profit, saving time, and saving money. The golden promise of FBA can be fulfilled if the merchant ensures to tap into the market of Amazon prime while also uses the saved time and money for progressing marketing and profit plans.