Amazon FBA FAQ
Amazon Fulfillment by Amazon (FBA) FAQ
Please choose from one of the topics below:
#1 Q: What is Amazon's 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.#2 Q: How do I start an Amazon FBA business?
A: Steps to Starting an FBA Business and Creating an FBA Business Plan
- Step One: Create an Amazon Seller Account. ...
- Step Two: Pick Your Niche. ...
- Step Three: Research Products. ...
- Step Four: Establish Your Product Sourcing. ...
- Step Five: Establish Your Brand. ...
- Step Six: Create Your Product Listings. ...
- Step Seven: Marketing Your Product.
#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. #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.#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. The reason I recommend this amount is because it will give you a good number 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 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.#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.#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.#8 Q: How much is the 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.#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.#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 safe, start selling books on Amazon. Product research and searching for the right supplier have become more complicated, but Amazon FBA is worth it.#11 Q: As an Amazon FBA Seller, can I purchase 30 items at a wholesale price of 25% or 35% off discount?
A: Yes, you can purchase 30 items as long as you register with our company's wholesale account. Once registered, you will receive a 25% discount (with free membership) or a 35% discount (with subscription). You can then resell the items at your own retail price for profit.#12 Q: I noticed that fixed shipping costs are added for each item when purchasing 30 items. Is this correct?
A: Yes, that is correct. To receive shipping discounts, you must not use fixed shipping with 30 items. Instead, please contact our live chat for a discussion about shipping discount. We can work with your special-order invoice to determine shipping discount costs, which can save you a lot of money. Please refer to our shipping discount charts below for more information.
SHIPPING DISCOUNT: If you order more than one item, SMITH DISTRIBUTORS offers shipping discounts to encourage buyers to add more items to their purchases. You can apply a discount to the shipping cost when a buyer purchases multiple items and offer carrier-specific discounts.
How do shipping discounts work?
To help you understand our shipping discount, here is an example: If you order 5 items after receiving a 25% or 35% discount, plus fixed shipping costs, compared to 5 items with shipping discount, you can see how much profit you and your customers can make.
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 items with shipping cost)
(B - 2) 5 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 items with shipping cost)
(C - 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. 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 - 2) 5 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)
At SMITH DISTRIBUTORS, we want to help you increase your sales and profits while also saving you on shipping costs. If you have multiple items to sell, we offer shipping discounts to buyers who purchase more than one item from you. To take advantage of this offer, please contact us through Live Chat or Email and request a Special Order Invoice with Shipping Discount. We will take care of the invoice and bill you accordingly. Let us know how we can assist you.#13 Q: Will you ship my items without my Amazon FBA Box ID and warehouse address?
A: No, you must provide us with your Amazon FBA Box ID and Amazon FBA's Warehouse Location. We will drop ship your items to that location and ensure they are taken care of.
ADVISE: To use our shipping service, which offers discounts through FedEx or UPS, please send us your Amazon (FBA) box ID and address via email on our CONTACT US page. You won't need to pay for shipping labels with UPS because we will drop ship your order to your warehouse using our service.#14 Q: Will I receive a tracking number for my order of 30 items?
A: Yes, you can track all of your orders online through our website. We will also email you the tracking number as soon as your order ships.#15 Q: Can I get a CSV Data Feed for my Amazon FBA inventory?
A: Absolutely! You can find the "Data Feed CSV File" under the Business Opportunity menu. Make sure to use the "CSV Inventory EXCEL for Amazon FBA."