By Si Martin
What is FBA?
FBA stands for ‘Fulfilment By Amazon’. This service essentially opens up Amazon’s warehouses, distribution services, and world class customer service to you as a seller. You send your stock to one of Amazon’s warehouses (so you don’t end up filling your house with products!), where they store your stock until someone orders it. Amazon will then fulfill the order for you – picking it out from their warehouse and posting it to the customer. They even handle all customer service issues for you.
There are charges associated with this service though – based on how long a product is stored for, its size/weight, and a charge per item to pick and pack it. We show you your estimated FBA fees within our fee calculator. If you’d like more information on the FBA seller fees however, you can see our topic here.
Here’s how the FBA process works if you’re using ProfitSourcery:
- You buy products from a retailer, using ProfitSourcery.
- The products are then delivered to you.
- You upload the products to your Amazon inventory – Amazon will provide you with labels to print out and stick on your items.
- Once they’re all stickered up, arrange for UPS to come and collect them. (Then that’s the last step you need to do!)
- UPS take the products off to Amazon’s ‘fulfilment centre’.
- Amazon store the products until a customer places an order online.
- Amazon will then find the product, package it up, and send it out to the customer.
- Amazon will handle all of the customer services, responding to any questions or issues from the customer.
- Every 2 weeks, Amazon will automatically deposit all the money you’ve made minus their fees into your bank account.
- You find some new products using ProfitSourcery.
To find out more about Amazon’s FBA service, see here.