A Complete Overview On How Orders Are Processed Through Amazon FBA & How Third-Party Sellers Earn Profits
Leon Vartanian is a successful Amazon seller and an entrepreneur who also coaches people to sell their products through Amazon’s FBA (Fulfillment By Amazon) program. With his extensive knowledge and experience of selling on Amazon and earning 6-figures through the amazing opportunity on Amazons platform with millions of prime users, he shares some brief insights on selling through Amazon FBA.
Recently many e-commerce businesses have started leveraging Fulfillment By Amazon to increase their profit margins and sales. It’s a special service offered by Amazon to third-party sellers allowing them to automate their order fulfillment and shipping services. This means Amazon will take care of everything for these sellers including the order packaging, shipping, delivery, returns and refunds.
All sellers need to do is send their products to an Amazon warehouse and handle the sales from their end. In exchange for a standard fee, Amazon handles the rest of the processes to help them serve their customers better.
How FBA Orders Are Processed At Amazon?
You can simply send in your products to Amazon warehouses from your seller central account.
First, Amazon receives your products, scans their labels, weighs them and stores them safely in their warehouse. The moment an order is received for your product, Amazon handles the entire transaction from payment to updating your inventory.
Then, the product is packed and shipped from the warehouse and while this is being done, Amazon also handles the customer support for you, including returns and refunds. From sending them emails notifying your customer that their item has been dispatched, to dealing with shipping and payments, Amazon fulfills it all.
Then the profit that your products make on every sale is directly deposited to your bank account every two weeks.
Requirements From Sellers’ End
Before sending your products to an Amazon Fulfillment Center, you need to research from your end and source the right product that’s in demand by your customers and has good profitability. These products are to be listed on your seller account. Then, a shipment is created through Amazon Seller Central, where Amazon provides UPS shipping labels for your inventory to be sent from your supplier to the Amazon warehouse where they will receive the shipment and get it ready for customers.
Though Amazon always prompts sellers whenever the stock is running low, always make sure you proactively refill them whenever necessary.
The best part about selling Amazon FBA wholesale is no need to run any advertisements, Leon has spent $0 in advertising cost and does not need to put a title, description, or any of those things since it is already there when you list a product, including reviews, pictures, etc.
The fulfillment fees may vary depending upon the size of the product and the total shipping weight. Amazon has a pricing chart for products that weigh a few pounds to those weighing a couple hundred pounds. Additionally, Amazon charges storage fees based on how much space your products take up in the warehouse. But the profits outweigh the storage fees when doing product research correctly and analyzing data/numbers before investing into product.
Leon’s coaching program has helped people make a sustainable income from home by selling through Amazon FBA. and break mental barriers about making money. His company Vartanian Capital LLC offers strategies to their customers to grow their E-Commerce Business via Amazon/Walmart. Check out their website.
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