Amazon FBA

What is Amazon FBA?

FBA  which stands for “Fulfillment by Amazon” is a service created by the Amazon which allows you to store your products in Amazon’s fulfillment centers (their warehouses), and they will pick, pack, ship your products once you receive orders from your customers thereby freeing you (the seller) from hassle of logistics and fulfillment, which allows you time to focus on business development, marketing and getting more orders.

Earlier an eCommerce seller used to handle all the fulfillment herself which would involve packing the item, buying postage, shipping out the order, negotiating best postage rates, buying shipping supplies and ensuring daily dispatch during all times of year WELL all these things are now handled by Amazon FBA and furthermore there are many more benefits to it, like your products become Amazon Prime eligible and all the customer support is handled by Amazon.

Sounds pretty awesome, right? It means you can focus on the product and let Amazon through its FBA program take care of the boring logistics for you.

Why is everyone excited about FBA?

As explained above, Amazon FBA takes care of all the logistics but one can argue that there may be many other logistics & fulfillment companies ( ForwardToFBA also offers low cost direct-to-customer fulfillment services ) however FBA has one major advantage that is, it integrate seamlessly with world’s largest marketplace namely Amazon. Few of the advantages of FBA are:

  • Seamless Integration of FBA with Amazon.
  • Products become prime eligible (more on Amazon Prime in coming days, do not forget to sign up below)
  • No input by sellers, Amazon handles all the shipping and packing.
  • Most efficient fulfillment network of the world is available to first time seller without any extra charges.
  • Multi-channel fulfillment allows to fulfill the products that are sold through channels other than Amazon like your own website, on facebook or any other marketplace like Gumtree.

What is opportunity in here?

Amazon offers an opportunity for building up a passive income stream through it marketplace and using FBA, one can make it fully automatic whereby as a seller you do not need to monitor it on daily basis however you are certainly required to put in effort and money at the beginning in order to understand Amazon marketplace, perform research into product sourcing from China and finally prepare and send your shipment to Amazon FBA Warehouse.

There can be many gigs out there but in my opinion Amazon is best one as it can be made to run on full auto pilot which can be your best passive income source. You must be wondering what are average returns from selling on Amazon, well individual sellers are making thousands of dollars while full time business have reported millions of dollars in annual sales. It all depends upon the product that you are selling, it’s demand and effectiveness of your marketing. FBA sellers have reported 500 – 1000$ in sales during their first month of operation. Check out Amazon business opportunity for sellers in Australia.

Is Amazon FBA available in Australia?

Right now answer is NO (Edit: YES, FBA is now available in Australia), however Amazon has already announced its plan for Australia and Amazon FBA is expected to launch during later half of the current year. Right now, do the following to prepare for Amazon Australia Launch:

  1. Amazon Australia is not active yet however as we reported earlier, Amazon Australia is allowing sellers to sign up so do not delay and sign up today.
  2. Read more about Amazon and its FBA program as details covered in this article are very basic ones. Do not forget to subscribe below as we will be publishing more informative articles in coming days.
  3. You can start your research into product sourcing and by the time Amazon launches in Australia you will be ready to get started.
  4. Try out other marketplaces in the meantime to gain experience, read about getting started on eBay, additionally ForwardToFBA Prep, Forwarding & Fulfillment services are best in Australia and specifically designed for online sellers.
  5. Let us know if you have any queries or questions through comment form below.

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