FBA 101: A Beginner’s Guide to Selling on Amazon

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Many people have become successful by doing e-commerce business, and there are a lot of newcomers recently. You might be one of these “newcomers” and are interested in joining the e-commerce community. One of the most famous site to do e-commerce business is Amazon.

Amazon has been in operation since 2000 and is widely used by various people in selling their products and personal items. If you’re a business owner, use Amazon FBA to simplify the selling process and organize your products.

Amazon FBA

You may have heard about Amazon FBA and people may have recommended it to you, but you don’t know what it is and how it works. Basically, Amazon FBA is a type of service that Amazon offers to its sellers to help them grow their business. It involves shipping your items to the Amazon storage center until a customer purchases your item.

New sellers usually have a hard time keeping track of their items and find it a hassle to deliver items to Amazon. If you’re one of them, there are online services, such as FBABEE, that are dedicated to helping you have a smooth and easy selling experience. When you sell items using FBA, you simplify your transactions and provide customers with a better service than other platforms.

Selling on Amazon Using FBA

There is nothing much to remember about FBA except that it is more of a storage center for your products before they are sold. So, how do you sell your items on Amazon using Amazon FBA? Here are four simple steps.

  1. Create an Amazon Seller Account

Creating an account in Amazon is pretty straightforward. Just go to their site, and click “Start Selling.” You’ll be redirected to their login page, and you need to sign up for a new account.

Note that your account type matters a lot. You can either choose Individual Account or Professional Account. To decide which one to use, determine the number of items you plan to sell per month, which is less than 40 for an Individual Account and 40 or more for a Professional Account.

The reason for categorizing the account type based on the number of items is simply because the charges are made equal per month. For an Individual Account, Amazon charges you $0.99 for every item sold. For a Professional Account, you pay a monthly fee of $40, which is equal to the amount you pay if you sell 40 items per month using an Individual Account.

After signing up, you need to confirm your email and fill up the necessary details for your seller information. The last step in setting up your account is filling up your bank details for transaction purposes. After you have done all the steps, you will be redirected the Amazon Seller Central home page.

  1. List Your Items

On Amazon, the items you can include depend on the category available for you. Some products are not permitted on Amazon FBA, which include, but are not limited to:

  • Alcoholic beverages
  • Vehicle tires
  • Gift cards
  • Damaged items
  • Sculptures
  • Mobile unlocking devices
  • Firearms and ammunitions

So, you have to plan your items beforehand. Once, you have decided on which items to include, you can start adding items to your account.

To list your items, you need to go to the Amazon Seller Central page and click “Add a Product” under the “Inventory” tab. Then, you’ll be redirected to a page to search for the product you’re selling. You can only search for items that you bought, but you have to create a new product listing if you are selling your own product.

In this step, Amazon will only need three basic information about your product:

  • Price of your product – Be realistic with your given price, as this will affect your reputation as a seller on their platform.
  • Condition of your product – Basically, the platform has a list of conditions for you to choose from and a field for product description. In the description field, you need to indicate the specific characteristics of your product that are different from the original or where you bought the product.

Some tips what to include in the description field:

    • Indicate where you purchased/sourced your product, especially if it’s a personal item.
    • Indicate what parts of the product are deformed or different from the original item.
    • Indicate how long it has been used.
    • Indicate how the product was handled.
    • Specify the dimension.
    • If brand new, specify whether the item was bought locally or internationally.
  • Shipping options – You can choose how to ship your product – whether you let Amazon ship the product for you or you’ll ship it yourself. The former is basically using their FBA option.
  1. Convert Your Items to FBA

Some items are not permitted on Amazon FBA, which is why you need to change your items to FBA manually. The reason for this is to avoid customers from distrusting Amazon. Selling items that are unsafe and illegal would only harm Amazon’s reputation, which is why you should be aware of all product restrictions on Amazon FBA.

To convert your items:

  • Click “Manage Inventory” under the “Inventory” tab.
  • Then, you will be redirected to the product list page.
  • Click “Action.”
  • Click “Change to Fulfilled by Amazon.”

Finally, Amazon will ask you whether to use the “FBA Label Service” or “Stickerless, Commingled Inventory.” Basically, the latter mixes your products with the same products of other sellers. The former lets Amazon do the labeling of products for you and printing stickers for your item.

Then, you will be asked whether to “Convert Only” or “Convert and Send Inventory.” You should only choose the latter if you are not sending multiple products at a time.FBA 101

  1. Ship Your Items to Amazon

Before you can ship your items to Amazon, you need to create a shipping plan. The shipping plan can be accessed on the site, right after converting your item to FBA. You will need to provide your address, which is for returns purposes.

You need to choose the packing type you’d want, whether “Individual Products” or “Case-Packed Products.” You should only choose the latter if you’re sending a number of similar products to Amazon’s warehouse. Otherwise, choose “Individual Products.”

After you have filled up all the necessary fields, you need to indicate on your account that you’re shipping your item already. To do this, you need to go to “Manage FBA Shipments” under the “Inventory” tab. Then, you need to click “Continue with Shipping Plan” to ship the item.

Most of the time, Amazon will process your shipment details right away, but in some cases, you’ll be asked whether Amazon will prep the item or you’d do it yourself. Prepping involves putting stickers and labels to your item before shipping it to Amazon. You can also go online and find Amazon FBA providers and prep centers to simplify your shipment transaction.

After prepping your item, you just have to go to your preferred shipping carrier and drop your item. After a few days, your item will arrive at its warehouse, and your item will be up for purchase. Then, you have to wait for your item to be sold and collect your payment.

That’s it! You have sold your first item. You need to familiarize and be updated with Amazon if you decide to sell more or expand your business using Amazon.

The Bottom Line

Amazon has terms and conditions that you need to comply with. Be sure that you understand all of them so that you won’t violate any rules and you can continue selling with them. The process may be difficult at first, but you’ll get the hang of it after a few more sold items.