Amazon recently announced the Amazon FBA program. In short, Amazon FBA is a program that allows small and medium-sized online retail stores to participate in Amazon’s marketplace. The basic premise behind FBA is to give smaller online retailers an opportunity to go head-to-head with the large established websites like Amazon and eBay by providing a better customer experience.
By offering free or low-cost products, small and medium-sized business owners are able to compete with the giants and win market share. Today, we will take a look at how to get started with the Amazon FBA program.
So how does Amazon define a “small and medium-sized” business? According to Amazon, these businesses must have less than one thousand revenue orders in a year. This means any business that makes less than one thousand dollars per year is considered as a small and medium-sized business by Amazon. If you meet all these criteria, you can start your business in the Amazon Marketplace and start selling products using Amazon’s FBA program.
The main advantage of starting an FBA business is the low startup costs. You only need to invest money if you want to hire professionals like fulfillment, order fulfillment, and customer service representatives. If you think you can handle these tasks by yourself, then you can do so but it is always advisable to let a professional handle the technical aspects.
FBA sellers also have the advantage of not dealing with sales tax compliance. Most traditional online shopping stores have to pay a sales tax to the government if they make profits from sales in certain states. This means that you may be required to register and pay taxes if you want to sell products in different states. Not so with an FBA seller as taxes are only charged when you ship products to a customer. This means that you don’t have to pay any taxes since you don’t ship anything to a customer.
Another advantage for sellers on Amazon’s marketplace is that it is very easy to find customers. There are millions of existing and registered users on Amazon. Because of this, you can be assured that there will always be a large customer base for your products. This is important because this is one of the factors that influence the value of your items.
Although many people still doubt whether Amazon’s FBA is really worth investing in, those who have tried it say that it has been very effective for them. In the end, all the factors that sellers consider necessary will always make Amazon’s FBA worth it. It is certainly a good e-commerce option for those who want to sell products that are high in demand.