Almost every person knows about e-commerce platforms and some of you might be in e-commerce. If you are into e-commerce, you might have come across FBA i.e. Fulfillment By Amazon which is a kind of program that allows you to focus on the entrepreneurial parts of the business. The use of this program helps in eliminating every operation that weighs you down. It means that all your inventory has been completely fulfilled by Amazon. This concept is like when someone purchases a product, Amazon will select an item from inventory, packs it, and even ship it to the customer. Amazon FBA acts as an outsourced shipping and handling solution that is offered to all Amazon sellers.

A lot of things have become quite easy with the use of this solution. If you are interested in getting it. here are some of the important things to know about it. let’s have a look at them.

  • FBA IS expensive: Yes, FBA is true quite an expensive solution as Amazon charges sellers for both storage and fulfillment. Here the storage fees are charged from the sellers every month as the amount of space is calculated according to the prices charged. There are no charges for shipping as is considered as the part of Amazon Fulfillment cost which is already rolled in FBA fees. With the help of FBA, the seller’s products are eligible for free two-day shipping for all the amazon prime members. It becomes a great deal for both suppliers and even the end consumers. According to trusted reports, many amazon sellers have reported a great hike in sales after using this solution.
  • No sales quota: If the person wants to be a part of the FBA program, there is no need for Amazon to move a certain amount of merchandise every month. Amazon completely understands the fact that all products have different demands in the market. so there is no need to move inventory to nay place. It has been stated that FBA sellers’ sales can be quite great depending upon what they sell and how much they sell.
  • Uses FIFO method to determine Storage fees: Amazon charges prices for storing their products in the warehouses. The fees are dependent upon the volume. The charges for the space are calculated according to the FIFO method (First In First Out). The first batch that arises at the warehouse will be the first one left to the customers. Once the products leave the warehouse, there won’t be any storage fees for that. New items will come and replace the old ones and accordingly storage charges are calculated.
  • Amazon also charges long-term storage fees: If the inventory is very slow-moving, the seller has to bear long-term storage fees which will be added to the FBA fulfillment fees. All the items that are left in the warehouse for more than 6 months are eligible to pay long-term storage fees.
  • Better to start slow: If you are starting your business, it is highly recommended to start slow with Amazon FBA. There can be a lot of unforeseen expenses and challenges that the person needs to face. Starting with the limited inventory will help the person to manage them well. This way, the person will have a better evaluation of the costs and the income. Starting slow will ensure that the new entrepreneur doesn’t end up blocking a large portion of resources in just one thing.
  • You can save a lot of money by creating your own FBA shipping plan: Whenever the seller ships their products to Amazon, the company decides in which warehouse these will be stored. Sometimes, the company might decide to move your products to some other warehouse, and the cost of shipping them to some other place will be put on the shoulders of sellers. If you want to avoid such expenses, you can request your shipping plan. The seller will decide the most suitable shipping plan that will result in great cost-cutting.

So it can be stated that FBA seller has to pay different fees just to ensure that their inventory is stored and shipped properly to the customers. Even the company has its Fulfillment by Amazon Revenue Calculator that can be easily found on the Seller Central portal.

If you want to learn more about FBA or a newer concept i.e. Amazon Buybox, you need to get in touch with the best amazon agency solution platform like Saras Analytics. With time, many of them are coming up that are making things quite easier for the entrepreneur to start. The amazon agencies provide with many benefits which are stated below:

  • SEO and listing optimization: The agency will help in optimizing the titles for the product and even its descriptions. The agency makes sure that all the details regarding the products are clearly stated and presented well. This SEO and listing optimization will play a very important role in boosting the sales for the sellers.
  • Helps with paid ads: Nowadays promotions and advertisements play a very important role. So the agencies have proper knowledge and idea of how to use them well. Different technologies are used to ensure that the campaigns are running the optimized campaigns.
  • Creativity: Nowadays even listing things on amazon needs creativity. So the agencies help with the product listing creatively. Different new ideas are taken up that will help the products to stand out uniquely on the platform.

Nowadays the use of new technology has become very important if you want to be successful in life. In the e-commerce market, Amazon is the greatest platform. almost all the new entrepreneurs that are coming up in the market want to list their products with Amazon, it will be better for them to know how this can be done. Taking the help of the amazon agency will make the process a little easy and smooth. Even the agencies help their clients to know different concepts in detail and how they are very helpful in the long run.


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