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What is Fulfillment By Amazon (FBA)? A Guide to FBA

Views: 16     Author: Site Editor     Publish Time: 2022-06-15      Origin: Site

For many novice sellers, choosing FBA or FBM is a headache. First of all, considering that FBA delivery is easy but expensive, the key is to worry that the product will not be sold and the storage fee will be expensive. So what to do? Secondly, some sellers are still in a wait-and-see state, FBM is cheaper than FBA, wait for good sales before choosing FBA. It is not unreasonable to do so, but it is still necessary to consider the issue of logistics time?


In this Amazon FBA guide is divided into 7 parts:

Introduction to Amazon FBA

The Benefits of Using FBA Services

Drawbacks to FBA

What products are suitable for FBA?

FBA Restricted Products

Precautions When Using FBA

Amazon Packaging Requirements

What is Fulfillment By Amazon (FBA). A Guide to FBA


Introduction to Amazon FBA

The full name of FBA is Fulfillment by Amazon, which refers to the warehousing and distribution services provided by Amazon, including warehousing, packaging, distribution, collection and after-sales. Summarized in one sentence: Amazon provides one-stop services such as warehousing and drop shipping.


The purpose of FBA is: you sell, I deliver!


Note: The payment received by FBA will reach the seller after 14 days.


Fulfillment by Amazon: A series of services such as transportation (sea freight, air freight, international express...) until the goods enter the Amazon FBA warehouse and can be sold on the shelves, as well as related customs clearance, tax payment and other services.



What is Fulfillment By Amazon (FBA). A Guide to FBA_2



The Benefits of Using FBA Services

1. Increase the number of page views and transaction rates of the store.


Buyers will give priority to the items delivered by Amazon when purchasing items, just like the psychology of giving priority to JD.com when we go to JD.com to buy things. Moreover, Amazon will also give priority to the ranking of the products it distributes. If the products are the same and the delivery methods are different, the FBA ranking will be higher than the self-delivery.


2. Fast delivery time.


Order same day, arrive the next day, or deliver in two days. FBA warehousing and logistics centers are generally built near the airport, so the delivery speed is fast.


3. Unconditionally delete the medium and bad reviews in logistics and maintain the good indicators of the store.


This is not the comments on the review, but the comments on the logistics and transportation on the feedback. Therefore, you don't have to worry that the negative reviews on the logistics will affect your store rating.


4. In the standard size, products with a unit price of more than 300 US dollars are exempt from all fees of FBA.


That is, your product is a small, high-value item, and FBA will not charge you additional fulfillment fees.


5. Online customer service 24 hours a day, 7 days a year.


This is for buyers. When there is a problem with the product or when there is a need to consult customer service, we can ensure that the customer's problem can be solved as soon as possible.



Drawbacks to FBA

1. The overall cost is high.


Considering the cumulative cost of all related costs relative to self-delivery, FBA will cost more. Because you need to pay a series of related fees such as FBA warehousing.


2. Poor flexibility.


a, the seller cannot contact customer service at any time. For example, if you have an abnormal account problem, you can't find the customer service to help you solve the problem immediately. You can only leave your phone number through email and wait for the customer service to find you, in a very passive state.


b. For Amazon China's customer service, it is not professional enough. Even if it is a small problem, it can't provide a solution. Calling the US customer service can solve the problem instantly.


c, refunds and returns are too arbitrary. When there is a problem or dissatisfaction with the product purchased by the customer, it is possible to apply for a refund and return at any time.


3. Label problems affect delivery.


As we all know, shipping to FBA requires sticking product labels. If the product label is wrong or damaged, it will affect your normal work and operation, and the product cannot be put into storage.


4. The return address only supports the United States.


Assuming that the customer returns the product, it can only be returned to the US address or overseas warehouse, and then returned to the country through a third party. The shipping cost is too high, and Amazon staff will need to pay for the destruction.



What products are suitable for FBA?

So which products are suitable for FBA? Is it big or small? Is it expensive or cheap? STU Supply Chain has sorted it out, and the products with the following characteristics are suitable for FBA.


1. Products with excellent product quality and performance. Such products generally do not have returns and exchanges, which can greatly reduce the loss of sellers.


2. Products with small size and high profit. The product is small in size and easy to transport, which can save costs. But it should be reminded that the price of the product should not be set too low. Because shipping by FBA will generate related handling fees and various transaction fees, if the product price is too low, the profit will also be reduced. It is recommended that the price of products for FBA should be more than 5 to 6 US dollars.


In general, FBA is suitable for small and medium-sized sellers who operate products with high quality, small size, and high profits. The advantages of other products are less obvious.



FBA Restricted Products

Some people will have questions: Will the Amazon FBA warehouse accept the products selected by the seller? Of course not, Amazon also has principles. There is no problem with ordinary products such as clothing bags, books and images, electrical appliances, outdoor sports, watches and jewelry. However, like some flammable and explosive dangerous goods, goods that do not meet the packaging requirements, damaged or defective goods cannot be shipped by FBA.


It is mentioned in Amazon's "FBA Restricted Products": Failure to comply with FBA product packaging requirements, safety requirements and product restrictions may result in inventory rejections, processing and returns, future delivery blocked or additional packaging Additional fees apply for work or violations.



Precautions When Using FBA

Although knowing the benefits of FBA, Xinxin decided to ship to the Amazon warehouse, but sellers still need to pay attention to the following points:


1. In the background, the seller will first need to send the FBA listing to change the mode of transportation.


2. Confirmation of customs duties and customs clearance documents before delivery: product name, customs code, product material purpose, picture of the goods, etc. Due to the requirements of the US Department of Commerce, all goods currently imported into the United States must have an origin label.


3. Product weight and packaging size. It is necessary to accurately fill in the weight and packaging size of the product, because this factor will affect the cost of subsequent FBA. If the difference is too large, the FBA warehouse will be recalculated. However, if you overwrite the weight and packaging size of the product, the FBA warehouse may not make changes to the accounting, so the seller will have to bear more costs.


4. Product labels and carton labels. It is recommended to use a laser printer to print the label, and note that the label matches the actual item.


5. Track the number of in-stock items. You have to make sure that the quantity in stock is the same as the quantity delivered.


6. Barcode. As mentioned above, barcode damage directly affects the storage of your products.


7. Packing requirements. Amazon has its own packing standards, and if it exceeds his standards, it is likely to be returned to the country.



Amazon Packaging Requirements

1. Boxes containing multiple standard-sized items must not exceed 25 inches in length on any side.


2. The weight of each box must not exceed 50 pounds, except for single large items weighing more than 50 pounds


3. For large items weighing more than 50 pounds, the top and sides of the box must be labeled: TEAM LIFT; for large products weighing more than 100 pounds, the top and sides of the box must be labeled: MECH LIFT


4. Boxes containing jewelry or watches must not exceed 40 pounds


5. When choosing "original packaging" for delivery, the number of products per box shall not exceed 150; the original packaging refers to a single product, the same model and the same color.


6. When reusing past shipping boxes, be sure to remove previous labels and imprints. So as not to affect the warehousing and cause your own losses.

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