The term Amazon FBA is not well known to a lot of people. To give you a better understanding, FBA stands for Fulfilment by Amazon. With the help of an Amazon FBA agency, your product will reach millions of people.
In simple terms, you sell it and Amazon ships it.
Amazon FBA is a model designed for ecommerce retailers who are looking for a large online market to distribute their products for their targeted customer base.
How Does Amazon FBA Work?
Amazon FBA Agency
The process is simple and doesn’t take much to get the hang of things. So here’s the breakdown of how Amazon FBA works:
To get started, you have to send your product to an Amazon warehouse. Amazon owns a network of fulfillment and warehousing centers across the world. The Amazon team then starts the inventory sorting process. During this process, they check if there’s any damage to the products and assist the condition of the merchandise. If any mishap happens and the product gets damaged in any way, the giant retailer will compensate the loss.
When the shopper makes the order, that’s where the FBA process begins. The product gets packed, sorted and then shipped to the customer’s doorstep by Amazon’s team. The shipment gets tracked by Amazon itself. This way, you don’t have to do any follow ups yourself as that may throw your schedule off balance
Also, if a customer returns a product or wants a refund, it gets handled completely by Amazon.
Is Amazon FBA worth It?
Amazon Seller
You can see this question getting asked all over the internet.
To answer this question, it is a 100% worth it. Amazon FBA method is the best choice for a newbie seller with a budget.
If you are already involved in the selling world, you know fulfilling the order takes a lofty amount of time and attention. However, leaving it to the professionals frees up your time for more important things, such as focusing on your online business.
Some of the benefits you can get by choosing the Amazon FBA model:
-An optimized logistics funnel. Amazon makes shipping more efficient, allowing you to compete more effectively. Two-day delivery for Amazon Prime members boosts fulfillment success rates above typical thresholds.
-Ecommerce sellers benefit from discounted shipping rates. The sales projections are significantly increased by such an unusual incentive.
-Scalability of your ecommerce business is a key feature. There are more than 175 fulfillment centers worldwide operated by Amazon. In addition, because of the unlimited space in the warehouse, there is no inventory limit for the seller. There is also no minimum requirement. If you want to send only one product, you can do so.
-People who sell on other platforms can use Amazon’s multi-channel fulfillment service. With Shopify or BigCommerce, automating the order processing gets done right from the store dashboard. Once the integrations are complete, Amazon syncs the inventory and automatically updates the tracking status to your ecommerce store.
-The shipping speed is exceptional. In addition to that, returns don’t have to get processed with their shipping labels. The FBA reverse logistics team sorts it out.
Best Practices From an Amazon FBA Agency
Grow your FBA business by following the guideline best practices. Through implementing these best practices your business will see an increase in sales and growth.
Develop a Market-Based Brand
Market-Based Brand
Branding is a critical factor that defines the value of your products to customers in a unique way.
When you offer something distinctive, buyers will be loyal to your brand. Through promotional content on your package, your FBA business will bloom and customers will know what your brand has to offer. Having social media channels builds a real connection with your targeted audience.
Also, by hiring an Amazon FBA agency, you can build a professional business page. The page needs to look authentic and different, with optimized content to increase the sales.
Research Before you Sell
Market Research
Dig deep and find your niche in the market. Not all products will instantly yield massive sales, but you need to know what do you want to sell exactly.
Most importantly, the first step for a beginner should be conducting a market evaluation and testing all the models that have worked for other FBA businesses. You also need to look at the technical aspects of the product.
Testing any niche to see which one works best for your products can gets done through research product tools such as JungleScout.
Private label products are one of the options to sell on Amazon. The process of selling private labels involves rebranding an existing product that is produced by a manufacturer. A lot of Amazon’s own products are white labeled.
Many sellers choose to use Fulfillment by Amazon in order to deliver their white/private label products. However, finding products to sell under your own label require a thorough evaluation.
To succeed, you must find a niche that has high demand but with a low competition level. Contacting reliable suppliers and negotiating the price will be the next step.
Have an Impressive Optimization Plan
SEO Strategy
Your conversion rate won’t satisfy you if you dive in head first. By getting the help of an Amazon FBA agency, you get protection against the shady black-hat SEO and your product page will appear on the first page. Just like search engines, Amazon’s product page needs optimization to rank.
Because Amazon is a massive marketplace and thousands of sellers use it, it can be a tough job to get your products noticed by your targeted audience.
Your CRO blueprint has to look natural. Whether its user reviews or product descriptions, everything needs to be flawless. By doing this, your product will be on the first page in no time.
The first thing every new customer wants to know about your product is how it compares to your competitors. To win over their trust, you’ll need to work with up to scratch ranking factors- which result in positive reviews and more sales.
The customer tends to be more visual. It is therefore imperative that you use high-resolution images on your listings.
Additionally, you should answer frequently asked questions in bulleted format and include relevant keywords throughout your content. By doing so, your products will rank higher on the results pages, and your customers will get a better understanding of what your brand is about.
Keep Tabs on All Associated Costs
Cost Calculation
If you don’t know where you are spending your money, it will be challenging for you to set your profit margins on each sale transaction.
Firstly, you need to know exactly how much you need to get your products to the most proximate warehouse. Then, compare between the individual and the professional plan to determine which one suits your ecommerce business better.
You must examine other expenses carefully, such as storage fees and fulfillment costs. As a result of these factors, the price will depend on the size and package of your product, the distance of the shipment, as well as the duration during which your products are stored at Amazon’s warehouses.
Now that we have discussed everything you need to know about FBA business, let’s talk about why you might need an Amazon FBA agency.
Why Hire an Amazon FBA Agency?
Your Retail Business is Not Successful on Amazon
Online Shopping
If you already successfully sell your products via your own website or through another online store, then it shows your customers are seeing the value of the brand. However, if your business is struggling on Amazon it doesn’t mean there’s a flaw in your business model. Selling on the largest online market is a challenging task that requires a different approach.
By hiring an Amazon FBA agency, you will get a structured strategy based on your goals and objectives. The intention is to get your business up and running successfully on Amazon.
You Rely on Tools
Marketing Tools
Third-party tools aid a lot of Amazon sellers, especially beginners. The keyword tracker tool for example, will help you with Amazon SEO. The seller apps will help you achieve retail arbitrage. The crawler scraping tools will allow you to collect data without knowing any coding or configuration.
Tools are useful. Yet, they won’t be able to help you in a strategic sense. They don’t give you the big picture insights and priorities you need to dominate.
For the best approach, combine tools with human intuition. An Amazon agency will provide you the ideal strategy for your business.
At Masteradz, you will find various service offerings that add strategy to your toolset.
Amazon is Not Responding
Support Service
When things go south you expect to find someone you can rely on to figure things out. Amazon is keen on supporting new businesses as it works in their favor. They call it a win-win situation.
The support from Amazon, however, won’t last forever. With so many brands on the platform, you may find yourself struggling to get a hold of someone on the other line.
Once you are up and running, there becomes no specific reason for them to continue working with your brand. With an agency though, you will always have support. If there’s any issue, the agency takes care of it.
Policy Changes
Policy Changes
Amazon is a lucrative platform, but it has a reputation for implementing policies that hurt sellers. Changing suspension policies and review bans can threaten your existing business model if you don’t comply.
Many vendors believe they are up to date with all the changes by reading update emails and blogs. In reality, the information might be a little behind-the-curve that may harm your business.
An Amazon FBA agency continually researches behind the scenes to determine how the platform will change. They will provide you advance warnings of changes that might occur. Keeping you ahead and running smoothly.
Not Enough Skills Without an Amazon FBA Agency
Skills
Having great products is not enough to be successful on Amazon. You must have SEO skills. Getting your products to rank will remain tricky.
In this part, an agency can help. A professional team will work on researching the right keywords for you to increase your ranking. The team will also generate strategic copy that converts.
With the right SEO strategy, your business will be blooming.
Conclusion
Starting an ecommerce business using the FBA model is far easier than you might think. You can start small and build your business from there.
With Amazon FBA, you can sell niche products far more successfully than any other fulfillment method. This retail giant maintains a stellar reputation.
As a result customers trust Amazon’s logistic formula a lot more than other third-party solutions.
Find the right agency to work with you to launch your successful business using Amazon FBA.
