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Is Amazon FBA right for your business?

Amazon warehouse employee preparing orders
An Amazon employee prepares items for shipment. Photo: Amazon

E-commerce fulfillment services are great for those looking for an edge on their competition and to operate at peak performance. This service is an excellent way to manage your customer transactions. When deciding whether this program fits your business needs, it is necessary to understand all of the different factors.

What is Amazon FBA?

Fulfillment By Amazon (FBA) is a service offered to third-party sellers that helps businesses grow by providing access to Amazon's logistics network.

How does Amazon FBA work?

Businesses send products to Amazon fulfillment centers before they start selling and Amazon then stores that inventory at their warehouses. Once a customer places an order, Amazon will handle everything. This includes packaging, shipping, returns, and refunds as well as 24/7 customer service.

What are the benefits of Amazon FBA?

There are multiple advantages to using FBA for your e-commerce business:

  • Convenience and Time Savings: Amazon takes care of all the logistics so you don't have to.

  • Fast Delivery: Because items are already in the Amazon warehouse, FBA products are eligible for free two-day shipping with Amazon Prime.

  • Build Confidence and Trust: Customers know that when they place their order, they will receive their purchase in a timely manner.

  • Customer Support: Amazon handles customer service for FBA sellers 24/7.

  • Returns and Refunds: As part of the fulfillment process Amazon handles all returns and refunds and you’ll spend less on your shipping costs.

  • Algorithm: Amazon's algorithm favors FBA sellers, which means there is a better chance of appearing higher in search results.

How to sell using Amazon FBA

If you are ready to try out the FBA platform and wondering how to start, follow these five steps.

  1. Create a Professional seller account

  2. Add FBA to your seller account

  3. Create your product listings

  4. Prepare your products

  5. Ship your products to Amazon

Amazon FBA Tip

Efficient inventory management is key! Managing your FBA inventory levels helps prevent you from overselling items you don’t have in stock or paying extra storage fees for a surplus of items that aren’t going to be sold anytime soon.

Amazon FBA can help your online business grow without the need for you to invest thousands in storage facilities and staff. It's a very simple process with powerful results!


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