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Amazon FBA FAQ

Amazon FBA FAQ

Amazon Fulfillment by Amazon (FBA) FAQ

 Please choose from one of the topics below:

#1 Q: What is Amazon FBA business?

A: With Fulfillment by Amazon (FBA), you store your products in Amazon's fulfillment centers, and we pick, pack, ship, and provide customer service for these products. FBA can help you scale your business and reach more customers.

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#2 Q: How do I start an Amazon FBA business?

A: Steps to Starting an FBA Business and Creating an FBA Business Plan

  1. Step One: Create an Amazon Seller Account. ...
  2. Step Two: Pick Your Niche. ...
  3. Step Three: Research Products. ...
  4. Step Four: Establish Your Product Sourcing. ...
  5. Step Five: Establish Your Brand. ...
  6. Step Six: Create Your Product Listings. ...
  7. Step Seven: Marketing Your Product.

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#3 Q: Is Amazon FBA still profitable?

A: Yes, Amazon FBA will still be profitable in 2020. It's been profitable for many years now and Amazon FBA, as a whole, is likely to remain profitable for many more years. However, to remain successful on the platform as a seller, you have to be prepared to tweak your approach from time to time.

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#4 Q: How much can you make selling on Amazon FBA?

A: Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make upwards of $250,000 each month in sales — that amounts to $3 million in annual sales! About half (50.7%) of Amazon sellers make from $1,000-$25,000/month, which could mean annual sales from $12,000-$300,000.

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#5 Q: How much money do you need to start an Amazon FBA business?

A: I recommend starting with around $500 in “seed money” that you can use to purchase inventory with. The reason I recommend this amount is because it will give you a good amount of products so you can start seeing sales right away, without running out of inventory on day one (this is a good/bad problem). It's all up to you. You could start with as little as $500 in inventory if you're really strapped for cash, or you just don't wanna take a big risk, or more than likely, you'll wanna start with around $2500 to $3000, and that's what most of our students do.

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#6 Q: Do I need an LLC to sell on Amazon FBA?

A: Technically, you don't need an LLC to have an Amazon business, you can register for an Amazon account as a sole proprietor, as long as you're a U.S. citizen.

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#7 Q: How much does Amazon charge for FBA?

A: Fulfillment by Amazon (FBA) is a way for sellers to ship their products directly to an Amazon warehouse. Amazon will handle the sale, picking the product from inventory, shipping, customer service, and returns. Amazon FBA fees range from 45 cents to $1.35 per unit, and $39.99 per month for a Professional account.

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#8 Q: How much is FBA storage fee?

A: Long-Term Inventory Storage Fees
Amazon conducts an inventory cleanup on the 15th of every month, at which time inventory that's been in fulfillment centers for more than 365 days is charged a long-term storage fee of $6.90 per cubic foot or $0.15 per-unit – whichever is greater.

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#9 Q: Who pays for FBA shipping?

A: When the item is sold to a buyer, the buyer or Amazon pays for the shipping, depending on the cost and whether or not the buyer is an Amazon Prime member. The net result to you is always $0.00 when it comes to shipping charges. You do, of course, pay fulfillment fees.

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#10 Q: Is an FBA business worth it?

A: You can't build a profitable online business in a day or a week. If you stick to it, you'll be successful over time. If you want to play it save, start selling books on Amazon. Product research and searching for the right supplier have become more complicated, but Amazon FBA is worth it.

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#11 Q: I am Amazon FBA Seller. Can I buy 30 Items at Wholesale Price 25% or 35% OFF Discount? 

A: Yes, You can buy 30 Items as long you are registering with our company's wholesale account, then you will get 25% OFF (FREE Membership for 25% OFF or Subscribe Members for 35% OFF). You can resell at your Retail Price for your profits.

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#12 Q: I was trying to figure it out if I buy 30 Items, and I noticed that Fixed Shipping is each item to add the cost?  

A: Yes, that is right. You must not use Fixed Shipping with 30 items. You have to call to Live Chat to a discussion about Shipping Discount. So We can be working with your Special Order Invoice for Shipping Discount Cost. It will save you lots of money. Here is explain about Shipping Discount Charts (below)

SHIPPING DISCOUNT: If you want to order more than 1 item or more. SMITH DISTRIBUTORS offering shipping discounts can encourage buyers to add more of your items to their purchase. You can apply a discount to the shipping cost when a buyer purchases multiple items, offer carrier-specific discounts.

How shipping discounts work?

Here is what make you understand clearly what we offer Shipping Discount:

Here is an example 5 Items with fixed shipping and 5 Items with Shipping Discount Compare to make you profit and your customers too.

Let Image if you order 5 Item after your 25% OFF Discount or 35% OFF, plus fixed shipping cost:

(A - 1) - 1 item is Retail Price $119.99 - 25% OFF = Wholesale Cost $89.99 (Your profit is $30.00) + Fixed Shipping is $12.28 for 2 lbs weight cost. (Better Buy 1 Item for that shipping cost)

(A - 2) - 1 item is Retail Price $119.99 - 35% OFF = Wholesale Cost $77.99 (Your profit is $42.00) + Fixed Shipping is $12.28 for 2 lbs weight cost. (Better Buy 1 Item for that shipping cost)

(B - 1) - 5 item is Retail Price $119.99 x 5 = $599.95 - 25% OFF = Wholesale Cost $449.96 (Your profit is $149.99) + Fixed Shipping is $12.28 x 5 = $61.40 for 19.25 lbs weight cost. Pay Wholesale Cost: $449.96 +  $61.40 for 19.25 LBS (Too High Cost on Fixed Shipping, Not good to buy 5 item with shipping cost)

(B - 25 item is Retail Price $119.99 x 5 = $599.95 - 35% OFF = Wholesale Cost $389.97 (Your profit is $209.98) + Fixed Shipping is $12.28 x 5 = $61.40 for 19.25 lbs weight cost. (Too High Cost on Fixed Shipping, Not good to buy 5 item with shipping cost)

(C - 15 item is Retail Price $119.99 x 5 = $599.95 - 25% OFF = Wholesale Cost $449.96 (Your profit is $149.99) + Fixed Shipping is $12.28 x 5 = $61.40 for 19.25 lbs weight cost. With Shipping Discount cost you $20.87 in our special orders with shipping discount invoice. Pay Wholesale Cost - $449.96 + $20.87. Save you money - $40.53! (Better Buy 5 Item for that shipping discount cost)

(C - 25 item is Retail Price $119.99 x 5 = $599.95 - 35% OFF = Wholesale Cost $389.97 (Your profit is $209.98) + Fixed Shipping is $12.28 x 5 = $61.40 for 19.25 lbs weight cost. With Shipping Discount cost you $20.87 in our special orders with shipping discount invoice. Save you money - $40.53! (Better Buy 5 Item for that shipping discount cost)

We are encouraging you to make more money to sell, and profit along saving shipping costs.

SMITH DISTRIBUTORS offer shipping discounts to buyers who buy more than one item from you, but you first need to please contact Live Chat Or Email Us for Special Order Invoice with Shipping Discount. We will work on your invoice and bill you for this. Just let us know about it.

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#13 Q: Do I have to give you my Reference # and warehouse for you to ship them?

A: Yes, You need to give me your reference number and Amazon FBA's Warehouse Location. We can drop ship to them for you. They will take care of your items. 

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#14 Q: After I order 30 Items, Are you give me a tracking number, so I can know my order arrives at my warehouse?

A: Yes, All of your orders can be tracked online from our website, and we email you the tracking number as soon as your order ships.

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#15 Q: I would like to have CSV Data Feed for my inventory for Amazon FBA?

A: Sure, you can look at "Data Feed CSV File" under the Business Opportunity menu. You have to use the "CSV Inventory RAW for Amazon FBA."