Ecommerce Encyclopedia

‟Ecommerce is a powerful means to connect the unconnected to global trade” - Arancha Gonzalez

Amazon FBA Explained For Beginners

Amazon FBA is short for Fulfillment by Amazon, which is a service Amazon offers to assist online business owners in managing inventory, packaging and delivering orders. Amazon will act as your ecommerce order fulfillment center where they will store the products for you until they are purchased and when that happens, Amazon will package and ship the orders for you. Basically, FBA is a type of dropshipping practice.

Why Amazon FBA?

Amazon FBA provides sellers with more flexibility, time and money to invest or focus on other business-related matters rather than storage and shipment. But of course, there are more than this when it comes to the benefits Amazon FBA brings when you use their services:

  • Reputable brand associate: Having your business partnering with a name as big as Amazon will surely qualify your products. Customers will have more trust in your store and will expect excellent services coming from FBA.
  • Subsidized Shipping Fees: Since Amazon is already working with shipping companies to ship their products, you can use that to your advantage by paying less for delivery fees. Sometimes when the orders are large enough, you can even get free shipping service for your customer.
  • Multi-Channel Fulfillment: Not only through Amazon marketplace, you can also use FBA to fulfill orders from other online platforms.
  • Shipping Standardization: All of your products are taken care of in the same manner that Amazon handles their orders. That is why you do not have to worry about items being mistreated.

Access to New Customers: When you use FBA, you will be eligible to qualify yourself for a Prime badge and get Amazon Prime services. This includes quick shipping, which a lot of Amazon customers are looking for. Thus, when they need that feature, people can filter out other normal products and see yours.