Amazon is the world’s biggest and most popular ecommerce website, and the 8th most popular website in the United States. Millions of people shop the site every day, and Quantcast estimates over 71,000,000 people visit the website each month.
Unlike most other ecommerce websites, Amazon isn’t actually self-contained. A large number of the products sold through their website are sold by other companies and individuals, making it an incredible opportunity to reach a built-in audience that shops there religiously.
One of the major ways Amazon has accomplished such a vast marketplace is through their Amazon Prime program. This program allows people to get greatly reduced 2-day and overnight shipping on a large number of items on the Amazon website for a yearly fee. The ability to get inexpensive shipping, and the fact that people have already paid money for the Prime annual fee, means some of those customers shop almost exclusively at Amazon.
If you’d like to learn how you can access these millions of passionate shoppers, read on. In this guide, you’re going to learn the basics of Amazon FBA, and how it can make you big money without a lot of upfront investment.
What is Amazon FBA?
Amazon’s FBA program, which stands for Fulfillment By Amazon, allows companies and individuals to sell products on the Amazon website. You send your products to Amazon fulfillment centers, and they handle all of the shipping and customer service. Once you’ve send your products to Amazon, they handle all of the hassles.
Some of the features of the FBA program include:
* Free shipping for orders over $35
* Amazon Prime shipping
* Competitive pricing to encourage purchases
* Customer service
If you’re looking for a business that is nearly passive income, Amazon FBA is a great option. Sure, it’s not entirely passive. You will have to search for inventor, upload information about your products, and ship the products to Amazon’s warehouse, but you don’t have to handle shipping the products to individual customers, tracking inventory, dealing with customer service, complaints, and returns, or any of that.
The FBA system just makes it incredibly easy to sell online, and it costs very little to get started.
How FBA Works
The FBA process is actually a lot simpler than most people think. It’s a 5-step process that requires you to send your inventory and upload your listings.
You can also sell on Amazon without having any inventory, allowing you to use drop shipping. We’ll cover that in a later chapter. Drop shipping is a way you can get started without spending money on inventory upfront.
The process is simple:
As you can see, most of the work is done by Amazon. Once you’ve uploaded your product information to their website and sent the products, Amazon handles everything else. This allows you to sell your products without the hassle of owning your own ecommerce website.
Individual or Professional
There are two types of accounts that can sell items through the Fulfilled by Amazon program: Individual and Professional.
The Individual level is free, and allows users to sell on Amazon without paying a monthly fee, but you must pay a $0.99 per item fee for every item you sell, on top of paying the standard fees (referral fees and closing fees.) If you think you will sell more than 40 items per month, it makes sense to go ahead and sign up for the professional account, because you’ll end up paying the equivalent of the $39.99 in all those $0.99 charges, anyway.
The Professional level is currently $39.99 per month. You still have to pay the referral fees and closing fees for the items you sell, but you do not have to pay the $0.99 per item fee, which means you can virtually sell an unlimited number of items with that $39.99 account.
The Professional level also has a few other benefits, such as:
* The ability to use third-party apps like Scoutify
* The ability to sell items that are not already listed on Amazon
* The ability to sell in the restricted categories (such as grocery, beauty, entertainment collectibles, health & personal care, clothing, shoes, and many others)
* The ability to create bundles of items
You can see a full list here of the restricted categories.
This page lists those categories that one must get approval to sell in, and Individual Sellers can NOT apply for approval. This means Individual Sellers are listed to only a very small number categories, which, of course, limits potential income and profits, as well.
If you don’t have the $39.99 available to join, there’s a 1-month free trial, but keep in mind that you’ll also be buying items to send to Amazon, which means you need some cash available for that, as well.
Overall, it’s a very good idea to go ahead and get the Professional Seller account. If you’re serious about making money on Amazon, you’re likely to make up for that fee quickly. However, wait to sign up for the paid account until you have inventory ready to send to Amazon, because you don’t want to waste any of your monthly fee while you’re still looking for something to sell.If you would like to learn more about the Amazon FBA program you can download our FREE report by visiting this link – Amazon FBA