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Are you into e-commerce or dropshipping? The Fulfillment by Amazon (FBA) program helps you to focus on the entrepreneurial part of your business. It eliminates the day-to-day operations that can cause burnout. FBA means that your inventory has been fulfilled by Amazon. Here’s how it works. Amazon sellers register with Amazon’s FBA program and create their product listings on Amazon. Then, they prepare their products and ship them to an Amazon warehouse. So, when someone purchases a product, Amazon selects the product from their inventory, packs it, and ships it to the customer. If you’re thinking of using FBA services to handle your orders, here are 8 important facts you should know about them before getting started.

Amazon FBA Is Costly

I’m not going to sugar-coat it. You’re going to spend money when you use FBA. Amazon charges FBA sellers for both storage and fulfillment. Even with the fees, Amazon reports that 64% of sellers earn profits in their first year, and 20% of them earn a profit within the first 3 months. Like any other business, fees and costs will occur. Consider FBA fees as an investment in inventory management, operations, and marketing.

Amazon FBA

There Is No Sales Quota

Amazon doesn’t require you to move a certain amount of merchandise every month if you want to be part of the FBA program. They understand that not all products are created equal. The demand for some products is different than for others.

Therefore, the company offers FBA services to all business owners, even those who don’t move inventory quickly. Most FBA sellers make $1,000 to $25,000 per month in sales. It all depends on what you are selling and how much.

Inbound Transportation Has No Limits

Amazon has neither minimum nor maximum limits on the amount of product you can send to a fulfillment center in a single shipment. This is encouraging news, particularly given the greater transportation costs coupled with restocking with smaller, more regular shipments rather than a single big supply. If you’re an Amazon FBA seller, you may send as much of your product line as you like in a single shipment.

Amazon Uses FIFO Method To Determine Storage Fees

Amazon charges for storing your products in its warehouse. These fees change seasonally or depend on volume. You’re likely curious about how Amazon charges for storage space. It uses the First In, First Out (FIFO) method. Your first batch of products that arrived at the warehouse will be the first to go out when customers order them.

Once they’re gone, storage fees aren’t needed. New products that arrive to replace old ones are subject to a storage fee until they’re sold. You are also subject to varying FBA fees if you send in some inventory during a lower-rate season and send an additional shipment during a high-rate season.

Amazon FBA Fees Are In Addition To Commissions

Amazon fulfillment and storage costs are in addition to your commission expenses and other selling fees. If you decide to handle shipping on your own, you’d still owe Amazon a percentage of your sale as a commission regardless of the sale plan you operate on. That sale plan doesn’t vanish away just because you’re using FBA. Ensure you factor in commission in addition to all the other expenses associated with selling products on Amazon and using Amazon fulfillment services.

You Can Save Money By Creating Your Shipping Plan

When you ship products to Amazon for the fulfillment, the company will decide which warehouse is best suited for your products. After a while, Amazon might think it’s a better idea to move your products to another warehouse. When that happens, the seller is responsible for the shipping costs.

Amazon doesn’t cover freight to the new warehouse. You can avoid these warehouse changes and unexpected fees by requesting your shipping plan.  If you want to develop an effective shipping plan, you need to understand your target demographics and where most of your orders are being shipped.

Amazon Charges A Long-Term Storage Fee

If your inventory moves slowly, you might be slapped with a long-term storage fee, in addition to the other FBA fees. Products left in the warehouse for longer than six months are subject to a long-term fee. If you have products that are in very low demand, you will have to factor that fee into your cost-benefit analysis. You can use Amazon’s Inventory Age and Inventory Health reports to identify which products in your inventory may be subject to long-term fees.

Amazon FBA

Your FBA Account Can Be Suspended

When you sell on Amazon, you’ve to play by the company’s rules. Or else, you lose your account. Some infractions that can cause you to lose your selling privileges on Amazon are having more than one seller account except you take permission and it’s approved, manipulating or falsifying reviews, poor quality products, violating intellectual property laws, and so on.

Final Thoughts

FBA is a great way to delegate a lot of hassles associated with e-commerce or dropshipping to a company with an outstanding reputation online. If you’re building your business, it can be hard to ignore the giant that is Amazon. No matter what you’re selling, someone is likely searching for it on the site.

You should take advantage of the built-in audience and brand awareness behind the large Amazon name. However, there are times when selling your products elsewhere may be a better idea. When you enlist Amazon’s aid, you’ll pay the price. Ensure you calculate the cost and factor it into your potential profit margin before you enroll in Amazon FBA.

Contact us today at Fulfillman to know more about our services. We are dedicated to offering outstanding services, including Amazon FBA, Dropshipping, Product Photography, China Sourcing, Warehouse Fulfillment, Private Label Dropshipping, Third Party Logistics, and so forth.

Our reliable team will be happy to speak with you and discuss your available options. With Fulfillman, you are guaranteed to get quality and excellent services that give complete customer satisfaction.


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With e-commerce as the current order of the day, new entrepreneurs are emerging by the hour. People want to engage with the leading and best platforms available. One name that comes to mind is Amazon. Amazon is one of the largest e-commerce platforms today, boasting hundreds of millions of sellers and buyers. Most people shopping online associate with Amazon. As a way of helping sellers sell more products reach out to more customers, the platform offers Fulfilment by Amazon or Amazon FBA.

Fulfilment by Amazon, also known as Amazon FBA is a service offered to Amazon sellers whereby Amazon stores your goods and does the order fulfilment down to returns. Having such a large customer base increase helps get more sales and ultimately high profit. Therefore, it’s understandable you want to join the Amazon world of e-commerce or increase sales and revenue as an existing seller. Here are nine important tips for selling on Amazon in 2021.

Research and Narrow Your Niche Properly

Going head to head with the best sellers on Amazon is not a good idea as a newbie. Research competitors regardless of whether you are a newbie or a pro. This gives you an insight into what kinds of products are popular. Most sellers tend to pick products that have high demand and low competition. Your research should help you narrow your niche. Build your products in one or two niches pick the best selling products that you got from your research. You might as well customise your products for your target audience

Consider the Sales Rank

It’s very important to consider the sales rank. Low ranking products are slow sellers which incur long term storage fees but there is little competition. This makes it easier to become the dominant seller for this type of listing. High ranking products on the other hand sell very fast meaning there is a lot of competition. Studying the sales rank gives you a good idea of what you are against and helps you in choosing your products.

Take Advantage of Product Bundling

Winning the buy box on Amazon is one tip you don’t want to ignore. In situations where many sellers are on the same listing, winning the buy-box becomes very hard. Combining an extra dice bag with a board game for example gives you a unique listing that shows up when customers search for the main product (board game in this case). People would tend to click on your listing and hence buy from you, competition is reduced or eliminated.

Build Your Unique Brand Identity

Amazon has millions of sellers, to be successful you need to create your unique brand and stand out. Having a deep understanding of your target buyers as well as creating great titles descriptions and styled product images should be done consistently. Having a strong brand name isn’t achieved overnight, it’s done with consistent customer satisfaction over time. A good brand name would have buyers come again increasing your sales and revenue.

Implement the Best SEO Practices

However, it can be difficult to get your products discovered on Amazon because of the pool of sellers and products there. It’s also a very massive and highly competitive market. More like Google, on Amazon keywords are valuable to have your listing appear on the first page with the right keywords. This is key to generating more sales. Using keywords in your product listing is crucial to getting noticed at the top of the pile. Research what keywords people use when searching for your products and insert them accordingly in your product listing.

Include a Descriptive and Concise Product Title

The product title should be as descriptive as possible but concise, Amazon only allows 250words. Using all 250 words isn’t a good idea. Amazon suppresses product listings that have excessively long titles. It should include the brand name product name and features such as color, gender, size etc. Customers would have an idea of what they are buying and you would also be able to insert keywords.

Add Excellent Product Photography

Excellent pictures of your product are very valuable as they constitute your customer’s first impression. Since the purchase is online the pictorial representation of your product must be as detailed as possible. Have images of the product in different angles, with the various features up close, show it in action so buyers can see how it should be used. Create videos to make the audience see it in close action making your photo description more engaging.

Write an In-depth Product Description

Well, all you felt necessary to put in the product title can be posted here. Leave your customer with little or no doubts about your products meaning they should have a complete description of your products and instructions. Add more photos, videos, tell your brand’s story and provide a clear comprehensive description of your product and brand. Feel free to go overboard and create an emotional connection with your customers. Let them have a clear understanding of the products they are getting and also let them know who they are purchasing them from.

Get Reviews

This is one of the most important tips for selling on Amazon successfully. Make sure you gather reviews at all cost. FBA is such that it goes all the way from storage to fulfilment and even customer care; review is one way you can boost sales on your own. This particular section is very important because buyers tend to associate with brands or products with positive reviews. People are more likely to purchase products with positive reviews. When buying a product it feels safer and common sense suggest we go for a product that has 70 positive reviews than one that no one is talking about. Customers also follow this school of thought when unsure of a certain product or just trying it out

Conclusion

Amazon has a lot of potential customers out there hundreds of millions to be precise for sellers to capitalize on. They also boast millions of sellers which brings a lot of competition to you as a seller. Take note of the tips highlighted above and be a standout seller on this ever-expanding e-commerce platform.

Contact us today at Fulfillman to know more about our services. We are dedicated to offering outstanding services, including Amazon FBA, Dropshipping, Product Photography, China Sourcing, Warehouse Fulfillment, Private Label Dropshipping, Third Party Logistics, and so forth. Our reliable team will be happy to speak with you and discuss your available options. With Fulfillman, you are guaranteed to get quality and excellent services that give complete customer satisfaction.