In our previous guide, we talked about how to start a dropshipping business and make the most out of the lack of inventory. Well, extra points on this strategy and a definite support has also come from the major brands – or Amazon as a major online platform nowadays- with its establishment of the famous FBA (Fulfillment By Amazon) service.

Amazon is one of the largest eCommerce websites out there. And undoubtedly, it became even larger since the establishment of a logistics network that is ultra sophisticated, diverse and globally present. With covering more than 20 unique categories, many sub-categories and 10 global markets, shopping online has been changed by Amazon in the most fundamental way.

As one of their bigger innovations, Amazon has presented the service called Fulfillment By Amazon or shortly known as FBA. In a nutshell, it is a platform that handles the back-end operations of third-party sellers in the dropshipping aspect of online business, something that we talked about before (check our Guide To Dropshipping). The service covers storage, fulfillment and customer service operations brought in-one or basically the entire back-end fulfillment of an item once it is purchased by a customer online. Making the whole process faster and easier, Amazon has led the way to a new innovation in which it differentiates the third-party sellers’ products from their competitors in a faster way in terms of delivery, as well as a improved access to a wide customer base.

The Main Benefit of FBA

The leading advantage of Fulfillment By Amazon – FBA is definitely the fact that sellers are now able to ship their products in bulk to Amazon and Amazon will pack and ship them as individual orders , making the whole process easier and eliminating headaches when it comes to multiple orders at a time.

When using FBA, it is known that the sales increase for any seller, simply because the FBA method quickens up the whole process of shipping, making the 2-day shipping a reality and an affordable option for every online buyer.

At this point, you may be asking yourself:

How do I start using the Fulfillment By Amazon (FBA) service?

FBA is made for anyone. Instead of hiring tremendous spaces for inventory or even stack up your garage so you ship all the products to every buyer, the Fulfillment By Amazon helps in a major dropshipping way – it lets you send over all of your inventory to Amazon, make a real income from FBA and … satisfy the buyer to the maximum, which is our next sub-heading.

 

So, why are customers always happy with the FBA (Fulfillment by Amazon) strategy?

The FBA method starts with you selecting a niche in which you figure out which products will do on the market and which do not sell well. Once you find your perfect products and start the dropshipping business, it is easier to sell the products in just a few days. Whether you are home or on vacation, the great thing about FBA is that it will store your product in the FBA warehouse and send them to Amazon, from where you will digitally receive information on inventory levels and adjust the prices with only your computer and the Internet.

The third-party merchant reality here is another great thing about Amazon. Every buyer on Amazon wants to be assured that his product will arrive shortly and is of the highest quality. Therefore, connecting with an FBA account is beneficial to you and your business, while it attracts the buyers to buy your products, get them faster and ultimately, benefit you with their higher purchases (coming from the fact that the shipping price with FBA is increased).

The Price Checking Solution

In the event that you just started your dropshipping business and do not know the prices of all your dropshipping products, Amazon has thought of that too with introducing us the Amazon Price Checker App – working on every smartphone. And we all have smartphones in these times, right?

Nowadays, everyone can access the Amazon price checker through their smartphones, which is exactly the reason why this service is effective from the seller’s point of view. Many sellers have claimed that they made extra profit of 10-20% in the beginning of using FBA for their online business, while others have profits close to 100%, 400% or even more.

Taking Your Dropshipping Business On Another Level

Another great thing worth mentioning when speaking about FBA is the scalability. When starting a dropshipping business, no one wants to stick with hundreds of products. It is obvious that you need to find your product and target group to sell them to. And in this point, FBA is again perfect – as its introduction revolutionizes the ‘garage selling’ methods and lets you build a dropshipping empire without any actual products you possess.

 

The FBA Fees

Obviously, there is the fee factor there as well when considering to run a FBA for your dropshipping business. The UPS partnered shipping by Amazon (which is the best in the world) comes with a fee of $9-$15 per a 50 pound box – also depending on your location to the nearest fulfillment centers. And did we mention that the fulfillment centers by Amazon are rapidly expanding, meaning that there certainly is one in your area?

Despite this obvious fee which the customers pay, the commission of Amazon varies depending on the categories you sell your products in, but it’s normally there. And better yet, it is the price that every dropshipper needs to pay for a smooth delivery process and a process of packaging the products meeting the highest standards.

 

For more information on the fees by groups, weight or in particular, you can check Amazon’s FBA chart here.

Conclusion

 

The truth is – You sell it, Amazon ships it – and you have nothing to do with that.

The advanced fulfillment method by Amazon benefits your business and guarantees better and more sales. With the direct option of packing, shipping and providing excellent customer support, the FBA solution works well with product returns (which are also rare in cases with FBA, since the products do not underlie any obstacle).

In the end, Fulfillment By Amazon – FBA is a great program worth investigating and starting with if you want to boost your Amazon sales and reach your target group in a qualitative, better, revolutionized, quicker and simply – more effective way.