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Fulfillment by Amazon: Everything You Need to Know About an Amazon FBA Business

Amazon has seen remarkable, exponential growth since 2004, with no end in sight. With features such as Amazon Prime, Video, and a myriad of other services, it's no wonder the online retailer is dominating the market.

While Amazon sells many of their own products, they also have many third party sellers involved. In fact, the number of product sold by third party sellers has doubled between 2007 and 2018. In 2018, over 52% of products sold on Amazon were by third party sellers.

A huge feature that has allowed third party sellers to grow within the Amazon marketplace is the Fulfillment by Amazon (FBA) system. When a seller signs up for FBA, they ship their products to an Amazon warehouse where processing, packaging, and shipping is all done in one spot.

Are you interested in becoming an Amazon FBA business?

Keep reading to learn how FBA can help your business grow.

Becoming an Amazon FBA Business

It does not matter if you are a small business or a large corporation, the benefits you receive from FBA can help you grow. Here are some benefits that FBA businesses can enjoy:

  • No need for warehouse space. Renting out warehouse space to store product is costly, not to mention full-time staff to process it, and security measures that need to be installed to protect the product. 

  • Saving time. When FBA handles your products, you won't have to spend time processing and shipping your packages yourself. You can focus more on developing new products, increasing inventory, and marketing. FBA also ensures your products are shipped quickly and packaged perfectly.

  • Access to Amazon Prime. There's a reason over 100 million people have subscribed to Amazon Prime. The service offers 2 day shipping, access to thousands of free videos, and other amazing perks. 

  • Handling Returns. If a customer ends up not needing a product or otherwise has to return it, FBA will take care of receiving and restocking the return.

For a fee, you can enjoy these FBA services directly through Amazon, or work through a third party which sends inventory to a warehouse.

However, FBA may not be for everyone. It works best if you have high-volume products, so you can be sure you make profits large enough to justify FBA costs. Further, if you like to be in total control of inventory and processing, FBA may not be for you, since most of the day-to-day processing is handled by Amazon employees.

Alternatives to Amazon FBA

As mentioned previously, not every business can directly benefit from FBA. In some cases, alternatives are more favorable.

One such alternative is handling product inventory and shipments yourself. This puts you in direct control. You can also consider a dropshipping service, which handles the storage and shipment of product, but has no role in customer service.

Final Thoughts on Business Through Amazon

Becoming an Amazon FBA business is incredibly easy. You can sign up online, and handle everything from there. Then, you can enjoy all of the perks that the FBA service provides.

If you're looking for a way to find wholesale prices, and sell the products using the FBA service, visit our website today to get started.