Fulfilment by Amazon (FBA) is the logistics solution that is transforming e-commerce by allowing sellers to entrust their entire supply chain to Amazon experts.
Once registered with FBA, the seller only has to ship their products to Amazon warehouses. Amazon teams then ensure the entire supply chain, from storage to customer service, including packaging and shipping.
This logistics delegation radically transforms the seller’s daily life, no more hours spent managing shipments, instead focusing on sales optimization. Sellers also benefit from Amazon’s reputation, which can increase the visibility of their products.
FBA frees entrepreneurs from logistical constraints, allowing them to refocus on what is essential: developing their business and conquering new markets.
What are the benefits of Fulfilment by Amazon (FBA)?
Fulfilment by Amazon (FBA) offers several significant benefits for entrepreneurs and digital marketers:
- It frees up time by taking charge of the entire logistics process: storage, preparation, shipping and customer service. This delegation allows you to focus on developing the business.
- FBA makes it easier to manage operations with reliable, 24/7 customer service. Products fulfilled by Amazon also benefit from fast shipping, often within one day, which is highly valued by customers.
- FBA offers a transparent cost structure, allowing you to predict logistics-related expenses. Storage, shipping and optional services costs are clearly detailed, making budget management easier.
How does the Amazon FBA logistics process work?
The Amazon FBA logistics process is designed to optimize the efficiency of online sales. It all starts with the shipment of products to Amazon’s fulfillment centers, where they are carefully stored. Once a customer places an order, Amazon takes care of preparing and shipping the product. This system ensures smooth order management, providing a quality customer experience with delivery times often reduced to one day thanks to the Prime service.
To complete this supply chain, FBA focuses on excellence in customer service, with complete after-sales service support, including management of returns and refunds.
Sellers can track their inventory status in real time, allowing them to adjust their sales strategies.
What are the steps to register for Amazon FBA?
Amazon FBA registration starts at Amazon Seller Central. Here are 6 things to follow to sign up:
- First, create your seller account on the platform. This account allows you to access FBA services.
- You must provide verification information such as ID, bank statements, and tax information.
- Choose the sales plan that suits you, either individual or professional.
- Create your product listings. You can either create new listings or convert existing ones to FBA format.
- Then prepare your products according to Amazon’s packaging guidelines and ship them to Amazon fulfillment centers. Amazon makes your products available for sale as soon as they arrive at the warehouses.
- Use the management tools provided by Seller Central to track your inventory and adjust your selling strategies.
What are the costs associated with using Amazon FBA?
Using Amazon FBA involves various costs to consider. Listing fees range from €0.99 per item for the Individual plan to €39 per month for the Professional plan.
The initial stock purchase can cost between €500 and €4000 depending on the price range of the products.
The cost of preparing and shipping stocks, including packaging and labeling, varies between €0.50 and €1 per product.
Recurring costs include storage fees, which are charged between €26.50 and €35.50 per cubic meter, depending on the season. Added to this are order processing fees, which vary and depend on the product category, while Amazon commissions range from 7% to 25% on sales.
How can Amazon FBA improve the visibility of my products?
Amazon FBA improves product visibility through a combination of advertising strategies and preferred positioning. Products shipped through FBA often receive higher rankings in search results.
Amazon offers advertising solutions such as Sponsored Products that help target potential buyers effectively. These ads appear in high-visibility locations, including search results pages and product detail pages.
By using Amazon’s advertising tools, one can reach customers with high purchase intent, which not only improves visibility but also sales.
