Wholesale FBA Model
Following the Amazon FBA (fulfillment by Amazon) model, products/inventory are first tested as traditional dropshipping methods and then purchased wholesale from various suppliers/merchants and then shipped off to our warehouses. There we check them for any discrepancies, prep and properly handle the merchandise before shipping directly to Amazon fulfillment centers. Once at the Amazon fulfillment centers, when a customer places an order, Amazon will pick it up and handle shipping and delivery.
What is Amazon FBA?
Amazon FBA (Fulfillment by Amazon) is a service offered by Amazon that allows sellers to automate their orders. This way, Amazon takes care of handling the packaging, shipping, and subsequent delivery to the customer.
Here’s how it works: with Fulfillment by Amazon, third-party sellers send their goods to Amazon fulfillment centers before they are purchased. The products are kept at Amazon fulfillment centers until a customer buys them. Then they are picked up, packaged, shipped, and delivered by Amazon. Package returns are also handled by Amazon.
This allows for a more reliable and effective customer service and order fulfillment.
Anyone can use the Amazon FBA service, and it’s especially great for those who do not have the time to run their store but are still interested in trying out an e-commerce business.
Benefits of Amazon FBA
Good customer service
One of the main issues new e-commerce store owners face is learning to manage their business and ship out orders on time. With Amazon FBA, the shipping side of your business is completely covered. Amazon handles your products and makes sure to ship to customers on time.
New opportunities to gain more customers
Amazon provides multiple FBA programs as a way to assist you in maximizing profit, gaining new customers, and building loyalty in current customers. Some of these programs include; FBA small and light, FBA subscribe and save, FBA export, and multi-channel fulfillment.
Being a part of Amazon FBA can qualify you for discounted shipping rates. Some of your products may be eligible for free shipping or Amazon Prime two-day shipping. Even without discounted prices, it is still way cheaper than handling shipping on your own.
Increased storage space
You have an almost endless amount of storage space for your products because your products are being stored in Amazon fulfillment centers.
Management of returns
Handling goods returns as a new business owner can be really stressful. No worries, Amazon FBA takes care of refunds and returns, and makes your business as a whole, less stressful to run.
Common Client Questions
Will customers know you are part of Amazon FBA?
Yes, all Amazon-fulfilled products have the ‘Fulfilled by Amazon’ logo. No worries though, new customers are more likely to trust your business if they know the packaging, shipping, delivery, and returns are managed by Amazon.
Do you need custom packaging for Amazon FBA?
No, you do not. Your products can be packaged however you want, or you can go for a basic polybag. However, custom packaging could make your products seem more unique.
Will Amazon FBA help me win the buy box?
The Amazon buy box is a small white box on the right side of your product page where customers can easily add items for purchase.
Amazon FBA gives your products greater visibility and assists you in becoming a ‘Featured Merchant’ This increases your chance of winning the buy box.