How To Start And Run A Successful Amazon FBA Business

March 10, 2019 by Price-Fuel

amazon FBA

Amazon controls about 50% of the entire e-commerce market. 

They have the resources to offer the best deals, have the trust of billions of consumers, and offer an enormous inventory — that’s constantly growing. 

If you want to get into e-commerce, why try to compete with the resources of Amazon? 

Instead, start your own Amazon FBA business and watch the profits come pouring in. 

Ready to get started? 

Read on to learn everything you need to know about FBA. From understanding the fee structure to optimizing your selling strategy and prices, the kind of success you’ve dreamed of is well within your reach.

What Is FBA?

We know that you’re anxious to learn how to learn how to make your Amazon FBA business as profitable as possible. 

But first, let’s make sure you’re clear on what it is. 

FBA stands for “Fulfilled by Amazon.” It’s different from a more traditional e-commerce business in that you don’t have to take on the burden — and much of the expense — of packaging, shipping, and storage. 

You choose the products you’d like to sell, or send Amazon your specific products. They house these products in their fulfillment centers (warehouses) where they keep a full inventory of your products. 

Then, when someone buys something from your store on Amazon, your product is packed and shipped off to your customer — all taken care of by Amazon. They’ll even handle the customer service side of the transaction, and reimburse you for the full value of ay products that are damaged while in their warehouse. 

The Amazon fulfillment center handles the “headaches” of running your own e-commerce store. 

It’s your job to select bestselling and high-quality products, manage your inventory, and make sure you market what you have to offer. Private labeling options also mean that you can brand your website and products on your own, giving you greater control. 

Top Fulfillment by Amazon Benefits

As you’ve likely imagined, there are countless benefits to working with FBA. 

You’ll no longer have to worry about the logistics of shipping, and most of your products will arrive at their final destination two to five days after their purchase. This fast shipping is a great way to keep customers happy — and buying from you in the future. 

Inventory management is also much easier with FBA, saving you serious time and hassle. Plus, buyers trust Amazon, and over 75% of consumers say that, when they shop online, they try to buy from Amazon. 

Plus, if you decide to become a private label seller, you’ll also be able to completely control the price of your product. You’ll enjoy higher profits, and you won’t have to spend as much of your time sourcing the products you need.

Understanding Amazon FBA Fees

Let’s quickly go over the fees associated with running your own FBA business. 

The good news is that the fee scale is incredibly flexible, and even though you’ll still be responsible for some of the shipping costs, you’ll still pay less than you would if you handled it all on your own. 

Visit this page on Amazon’s website for a thorough breakdown of all fulfillment, storage, and referral fees. In general, common sense applies here.

If a product is a standard size, the fulfillment fees per unit will range anywhere from $2.41-$5.26 and above. For oversize fulfillment fees, you could pay anywhere from $8.26 and up to $137.32 and up for special oversize packages.

From January to September, your monthly inventory storage fees are 69 cents per cubic foot with standard size products, and 48 cents per cubic foot for oversize items. From October to December, you’ll pay $2.40 per cubic foot for standard size products, and $1.20 per cubic foot for oversize products.

Amazon will also likely take around a 15% referral fee when it comes to your products. 

How to Increase Your Amazon Fulfillment Center Profits

We know you’re anxious to learn how to generate the most income possible for your FBA business. 

First of all, conduct thorough market research to ensure that you choose the best possible products — and ones that are in high demand. You can use the Amazon Best Seller Ranking to learn more about popular products. 

If possible, choose smaller, lighter products, so that you can save on the cost of Amazon fees. 

You should also never shy away from negotiating with your suppliers, especially if you’re buying products in large quantities. Compare your offers in logistics, and use lower offers to negotiate with the suppliers you really want to work with. 

You should also make sure to find software that will allow you to optimize the price of your products and improve your pricing strategy as a whole. You can also take advantage of automated price changes that will allow you to boost your overall market share. It can even help you to optimize your PPC ads, bringing in more traffic to your marketplace. 

The right software will also change your prices according to your current inventory levels and overall market demand. 

Ready to Start Your Amazon FBA Business?

We know that you’re anxious to bring your Amazon FBA business to life. 

Take the time to find the best possible products, start branding and marketing your store, and, above all, rely on the top software and professional guidance to help you set the optimal price. 

We know this sounds like a lot to handle on your own — and that’s why we’re here to help make it easier. 

Learn more about how our services can help you have the most profitable FBA business possible, and understand how you can make a career out of selling on Amazon. 

Don’t compete with the e-commerce giant that is Amazon. Instead, take advantage of the opportunity that selling with them can offer you.

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