April 2, 2021

Amazon FBA: What Sellers can expect

If you are new to the Amazon business or are still considering becoming a seller, you may have wondered what is behind the term Amazon FBA. FBA is an abbreviation of "Fulfillment by Amazon". Basically, it means that you send Amazon your goods and Amazon takes care of the rest of the storage and shipment process. This has some advantages, which we will explain to you in this article. We will also inform you about the costs and present an alternative to Amazon FBA.

1. More visibility through Amazon FBA

Amazon is the largest online marketplace in the world. You can benefit from the huge number of customers by using Amazon FBA to gain more visibility. If you are an Amazon FBA merchant, your products will have the Prime logo. This logo tells your potential customers that shipping is fast and reliable. In addition, items with the Prime logo are displayed at the top of search results. Consequently, the likelihood of sales increases many times over. The increased reach then in turn leads to greater sales. Accordingly, you can gain an advantage over those competitors who do not use Amazon FBA. Furthermore, you will not only receive the Prime logo, but also the Amazon logo. This makes the buying process less complicated and gives you an advantage with customers.

2. Sales throughout Europe

Amazon FBA makes it easy for you to sell across Europe. This is an excellent way to expand your online business. By storing the goods in Amazon logistics centres, they reach your customers across Europe faster. Amazon has expanded its shipping network across the entire European continent in recent years. This means you can sell on several marketplaces, but only have to send goods to one Amazon logistics centre. In addition, the so-called "Pan-European Shipping" ensures that you have to pay lower fees and can store your products in an Amazon warehouse of your choice.

You should note that separate regulations apply to plus-size items. This applies to France, Italy, Spain, and the UK. In addition, since Brexit on January 1, 2021, no deliveries with Amazon FBA will be made across the new customs border. If you are interested in more current news on the Brexit, you can find some posts on this topic in our blog.

3. Less effort through Amazon FBA

The third advantage of Amazon FBA is that you have significantly less effort. The process works as follows:

  1. First you send your goods to Amazon.
  2. Your products will then be stored in an Amazon logistics centre.
  3. After a customer buys your product, Amazon handles all the shipping.
  4. Customer service is also taken care of in the process.
  5. If a customer returns the goods, Amazon will also process these returns for you.

Amazon's customer service is staffed around the clock. So if customers need help with a topic, they will always be advised. This service can lead to significantly better ratings for you. There are also other optional services when shipping through Amazon. Since some products need a barcode, it is helpful that Amazon also takes care of this task for you. In addition, gift wrapping is possible with Amazon FBA.

Amazon FBA Costs

When you sell a product through Amazon FBA, there are some costs. First and foremost is the brokerage fee, which is usually 15 per cent. For storage, the costs are calculated via the storage space that your goods have taken up. For one cubic metre, for example, you pay 26 to 36 euros – depending on the season. The fees for shipping depend on the packaging and the corresponding weight. To get an exact idea of the Amazon FBA costs, an FBA calculator is also recommended. If you have any further questions about FBA costs, please feel free to contact us.

Amazon FBA Alternative: Zenfulfillment

If you don't want to use Amazon FBA but still need help with storing and shipping goods, we can recommend Zenfulfillment. The Amazon logistics partner, with whom we have been working since last year, takes over many important tasks for you. The shipping is very reliable and even available worldwide. It is also particularly useful that you can connect not only Amazon, but also other online shops like Shopify with Zenfulfillment. Just like with Amazon FBA, your goods are stored in a Zenfulfillment logistics centre. You can monitor the deliveries via the dashboard. Many processes, such as the receipt of goods or the status of orders, are also completely automated. Furthermore, the Berlin-based company offers same-day shipping, through which more than 93 percent of all deliveries are made the very next day.

As far as Zenfulfillment prices are concerned, you pay 49.99 per month for less than 50 shipments. For more than 50 shipments, the price rises to 99.99 and for more than 100 shipments to a monthly 249.99. If you are interested in more information about Zenfulfillment, you can read about the logistics partner for Amazon Sellers in this article.

Those were all the benefits of Amazon FBA. Do you have any further questions about Amazon business or need help with Amazon SEO? Then feel free to get in touch with us. We are always available to help and advise you. Feel free to send us a message - without obligation, of course.

MadeByBrain - Agency for Amazon Sellers

We look forward to hearing from you.

via Amazon Services, Lukas Mankow

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