How to use Fulfillment by Amazon to Jump-start your Internet Business
It’s one of the best kept secrets on the Internet…
Like all great secrets, it’s hidden in plain sight.
The program was already open for a while by the time I stumbled upon it, and since then, I’ve used it to launch my business selling on Amazon to a full-time income.
The Secret is: Fulfillment by Amazon a.k.a. FBA, and it can revolutionize your Internet Business.
What is Fulfillment by Amazon?
It’s a service that I’ve used since 2008 for my business, and it’s a game changer.
Say you want to sell a product online.
In the “old days,” you’d have to ship items to your customers one at a time. More business and sales meant more employees you’d have to hire requiring larger warehouse space and all the associated headaches.
Fulfillment by Amazon came along and took away the headaches with a simple solution:
You ship your products in bulk to Amazon, and Amazon packs and ships each individual order for you.
But that’s not the Only Benefit
Simply removing the headache of shipping one order at a time is nice, but there are other fulfillment centers out there that will provide a similar service.
So what’s the big deal?
The big deal is that sales jump, and I mean really jump when using FBA.
The reason sales increase when using Fulfillment by Amazon is that now your products can qualify for Amazon’s Free Super Saver Shipping (meaning Amazon can offer its customers free shipping on your products with orders over $25), AND Amazon can also offer its Amazon Prime members Free, Two-day Shipping on your products.
Think about it, when you shop online, would you prefer to buy from a seller that can offer 2-day shipping for Free?
I’m an Amazon Prime member and love it. I had a lawnmower shipped to me for free with 2-day Shipping! It was awesome.
I might have passed on buying that lawnmower if the shipping wasn’t free, and just like that, many of your potential customers might be passing on placing their orders because of long estimated shipping times or the inconvenience of paying for shipping.
Fulfillment by Amazon removes this hurdle.
A Business that Doesn’t Sleep
Because Amazon ships the product for you, it essentially works 24 hours a day for you making sure your orders go out fast.
You can go on vacation and as long as you have product at the Amazon Fulfillment Center, your business runs on autopilot…orders come in and ship out without your having to lift a finger.
An Internet Business that can Grow
Instead of getting expensive warehouse space and employees to ship my orders, I can work from home and simply ship products to Amazon in bulk.
You can even have imported goods shipped directly to Amazon’s fulfillment centers.
It’s a business model that can grow fast without the tremendous capital expenses of a warehouse and equipment.
You can also use the service to manage and ship orders your customers place through eBay, Buy.com, and other marketplaces.
What types of Products Can you Ship to Amazon?
Amazon isn’t just for selling books. People buy lawnmowers, exercise equipment, electronics, you name it on Amazon.
You can ship media items such as books, but you can also ship non-media items: toys, TVs, home and garden items, and so on.
The items that I ship are non-media, meaning the products are not books, just regular, everyday products.
I prefer products that are not books because books have a very limited price range.
Non-book products can sell for a lot more which means I don’t have to sell tons of units to make a good living.
What are the Fulfillment by Amazon Fees?
FBA fees are low, and that’s why it’s great if you’re just starting out.
The fees are updated from time to time, but you can expect the following:
Picking Fee per Order (about $1)
Packing Fee per Order (about $1)
Weight Based Fee per Order (about $0.40 per pound shipped to a customer)
Storage Fee (about $0.45 per cubic foot of storage space you need)
Inbound freight (what it costs you to ship your products to Amazon)
The great thing about the inbound freight fee is that Amazon lets you partner with them on the shipping, so you can use their way low shipping rates.
You just tell Amazon how big and heavy your package is and the website will give you a label to put on your box. Easy!
Is FBA just for People Working from Home?
A while back, I did some consulting for a business that was selling online already doing a million dollars in online sales.
They weren’t using FBA, and after getting them started on FBA and adding a few more products, their business jumped.
They did 2 Million Dollars in sales that year!
Amazon became one of their biggest selling channels due to a large degree because FBA made it easier for customers to buy their products.
Is there a Right Way and a Wrong Way to use FBA?
There are definitely some strategies to use that will help your business when using FBA.
For example, one thing you don’t want to do is buy a bunch of product and ship it to Amazon just to find out that 100 other people have already done the same.
What value can you provide that isn’t already there? What makes your products unique?
If you can list a product that is not currently in FBA, you’ll benefit greatly from the sales.
If you can list products that no one else is selling, you’ll be able to sell without worrying about the competition.
So look for what is unique and desirable to your potential customers, and FBA will be a huge benefit.