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What Is Fulfillment by Amazon? 3 FAQ About Amazon FBA

Since Amazon first launched around twenty-five years ago, it's become the most popular e-commerce retail platform in the United States.

According to research by Statista, by December of 2017 Amazon sites had 197 million visitors per month. And, just last year, Amazon reportedly occupied a whopping 49% of the U.S. e-commerce market.

As the leader in online sales, sellers can't deny the value that Amazon brings to the table. And, now, Fulfillment by Amazon is making it even easier for retailers to cash in using their site.

What is Fulfillment by Amazon, exactly?

Well, if you aren't yet sure how this service works, then you're in the right place.

Read on to find out the answers to sellers' most frequently asked questions about Fulfillment by Amazon!

What Is Fulfillment by Amazon?

Selling your products on Amazon has never been easier thanks to their groundbreaking Fulfillment program.  

The program allows Amazon retailers to avoid the hassle and expense of storing, packing and shipping the products they sell to their customers.

Here's how it works:

  • Sellers set up an FBA (Fulfillment by Amazon) account 

  • The seller prepares their merchandise so that it's "e-commerce ready"

  • Retailers then ship their products to Amazon

  • When customers place an order, Amazon picks, packs, and ships it 

  • Throughout the process, Amazon provides customer support for FBA sellers' orders

By providing this service, Amazon empowers many retailers to grow their business in ways that might have never been possible, otherwise.

How Does Fulfillment By Amazon Benefit Retailers?

Many of the benefits that Amazon's Fulfillment program offers sellers is obvious once you understand how the program works. But, there are added bonuses as well.

The benefits of Fulfillment by Amazon include:

  • It eliminates the need for storage, cutting retailers' concerns and costs substantially

  • Businesses can operate with fewer employees, which again, can potentially save them big bucks

  • Sellers can relax knowing that consumers receive individualized customer service provided by Amazon

  • Amazon also handles returns and exchanges, which further saves store owners' stress, time, and money

  • FBA saves time, allowing business owners to concentrate on other aspects of running their company

  • Products are eligible for Prime shipping and listings carry the Amazon Prime logo, attracting even more online customers 

  • Products receive increased exposure on Amazon

In addition, FBA offers a host of other optional features and services to help retailers manage and grow their business.

But...How Much Does All of This Cost?

As if the benefits covered so far aren't compelling enough, Amazon's easy pricing plan is surprisingly reasonable. In fact, most often, it's more cost-effective for sellers than if they were to store and ship items themselves. Yet, there's a lot more included in the cost of Amazon's FBA program.

Instead of high monthly premiums, FBA members are able to pay as they go for the orders that Amazon fulfills.

Storage is charged by the foot, ranging from $.48 to $2.40 per cubic foot. Except for the busiest shopping season of the year (October through December), everyone pays less than $1.00 a foot for storing their merchandise.

Picking, packing, shipping, and customer service are included in one rate, per-unit-sold.

Find out More!

So, what is Fulfillment by Amazon, exactly?

In a nutshell, it's an all-in-one service that makes the sales process amazingly simple for Amazon sellers.

If you want to know more about this stellar program, we've got you covered.

Check out this page to find out everything you need to know about becoming an Amazon FBA business!