What is Amazon FBA?
FBA (Fulfilment by Amazon) is the unique system that gives the opportunity for almost anyone to get involved in selling merchandise without having to store or ship the items. With FBA, you have your merchandise shipped directly to a fulfillment center. Once the merchandise arrives at the dock, it is checked in and placed into storage. When an order is placed and paid for, the order is filled and is shipped to the customer.
In essence, the Fulfillment by Amazon system allows you to be a passive seller who doesn’t have to deal with physically storing, handling of shipping your merchandise. The FBA system does that for you.
To be a successful FBA seller, here are 4 logistic challenges you will be faced with:
- Make Sure Your Items Meet Local Standards
All of your imported products must meet local regulations and standards. It’s not enough to take your foreign vendor’s word. Check for yourself to ensure you meet compliance standards.
- Proper Product Labeling
It’s critically important that your product labels comply with FBA guidelines in order for them to manage your inventory correctly. Forward the label requirements to your vendor and make sure they comply.
- Amazon-friendly Packaging
Your products must be packaged correctly in order to fit e-commerce ready standards required by FBA. Avoid any problems and delays by starting out with the correct packaging format.
- Choose Professional Shipping
Don’t try and cut corners by using cheap and unreliable shippers to move you merchandise from your foreign vendors to the FDA centers. Use shipping companies that are already registered with Amazon.
Some other aspects of FBA you need to know are:
- Delivery Requirements for Imported Goods
Once you have selected an overseas supplier, you need to choose a customs broker to handle all of the paper work, shipping logistics and custom clearances. When your merchandise has cleared customs in the United States, you must arrange transportation to the designated FBA center for processing.
- How is returned merchandise handled?
Buyer returns are part of doing business. When Amazon issues a customer refund, they debit your seller account for the sale price plus any applicable sales taxes or fees to reimburse the customer. If Amazon is responsibility for shipping damage, you will be reimbursed for any charge back for the item.
- How and When You Get Paid
If you signed an Amazon FBA Participation Agreement, you can request outstanding payments due you every 24 hours. If you are not on this Participation plan, The funds in your seller account will be automatically transferred to your bank account every 14 days.