Being an online retailer has never been this easy. Thanks to Amazon. Statistics suggest that in just the US Amazon offers close to 2.5 billion customers every month! This comes with the hard-work and dedication they have put in for over two decades in creating a customer base that seeks the best of both – quality and products.
What is Amazon FBA?
Amazon FBA basically stands for Fulfilment-by-Amazon. This is a streamlined service which is offered by Amazon to help sellers not only store inventory but also pick, pack and ship inventory in their well-equipped fulfilment centre network.
If you are an online retailer, you would be pleased to know that this FBA service comes at a really low cost and would definitely not dig into your profits drastically. Another interesting thing to know is, when you sell products with the FBA service, your products get a Prime badge which means that all customers with a Prime membership get faster shipping and also your products show up starkly on the page.
Benefits of FBA
The profit margin you make on the products you sell, after deducting the cost of paying Amazon for the tag still happens to be a good $8-$15 per sold item. That implies that if you sell products under the private label, your product should easily earn a $2,000-$4,000 per month. This margin would obviously be subjective to the product you sell and how many units you end up selling.
If you are an online retailer finding it difficult to accumulate a customer base and offer seamless shipping logistics, you have nothing to fret over. There happens to be a seamless delivery process in place and it is time you can use these to your advantage.