Fulfilment by Amazon (FBA) refers to all process of products which have been sold from Amazon’s warehouses by Amazon staff. Amazon FBA is a huge job opportunity when managed properly by choosing right products.
You will remember if you read my article in the first issue.I shared some basic information about starting e-commerce business in the UK.In this issue, I will share some information about selling on Amazon which has been frequently asked to me. After moving to the UK in 2017,a year later I started to sell on Ebay. To start selling on Amazon especially with FBA model,I was supposed to be more equipped. After a long reading,learning and chatting with experienced Amazon sellers, I started to sell on Amazon FBA in 2019.
Fulfilment by Amazon (FBA) refers to all process of products which have been sold from Amazon’s warehouses by Amazon staff. A model which you can sell without the hassle of sending goods to customers without a warehouse.
The starting point for selling with Amazon FBA, which is a huge business opportunity when managed properly by choosing the right products, is to find the right product. If you’re shopping from Amazon, as a buyer, you’ll pay attention to: products price, photos, product reviews and delivery time. As well as your Amazon experience as a buyer, you should also start looking at products from the perspective of the seller. When you calculate your costs on Amazon FBA sales model, you will be able to understand what I really mean “right product”
What is the Cost of Amazon FBA Sales?
When you open a seller account on Amazon, you pay £ 30 including VAT each month. Amazon charges a commission on each product you sell (referral fee). Although it varies by product category, you may consider this rate as 15%.
After you send the products to the Amazon store, you pay a storage fee which will be invoiced at certain times because the products are located in the Amazon store. This fee is calculated daily.
You will pay a separate fee for the sold product to be prepared and shipped to the customer (fulfilment). When you want to sell the product from your own warehouse or home, your cost and time will probably be much higher. Small packages called “Small Parcel” only cost £ 2.90 via Royal Mail. Amazon will charge you almost the same fee for the preparation, shipping and return of the product for you.
What can I sell in Amazon?
If you don’t have a product of your own, you can make a selection by looking at the analysis of products sold on Amazon to decide which product to sell. The fees to be paid for storage and fulfilment are proportional to the volume and weight of the product. For this reason, you should consider the shipping and storage costs of the product.Your costs will not be limited to Amazon’s expenses. You will also have costs to purchase, import and ship the product to Amazon’s warehouse. For a product with a retail price of £ 15-20, these costs will be close to product costs. Therefore, I recommend that you do not ignore the volume and weight of the product.
When choosing a product to sell, you should check the level of competition on Amazon and how much profit it will yield to you after calculating costs. Advertising expenses to sell the product should also be calculated as a cost item.
After analyzing all of these costs as well as the sales volume of the product you intend to sell on Amazon, you can decide which product to sell.
Does this product sell on Amazon?
This is the most frequently asked question by my customers I give consultancy service about being Amazon seller for those whom manufacture in Turkey or supply goods. If you are a manufacturer or have determined where to supply the product you are going to sell, you should make your analysis according to these products. If you start selling with the products you see profitable and push the risky products into the background, your chances of success and profitability will increase. Before you start selling, if you correctly determine the average sales quantity of the products you will import to the UK, you can minimize the costs mentioned above.
How do I analyze products sold on Amazon?
You can find and buy paid technical tools on the internet where you can see the sales quantity of the products sold in Amazon and analyze the fees you will pay to Amazon. Or you can get help from an experienced consultant. Using Amazondasatarmi.com, you can get sales analysis.
Where can I find products to sell on Amazon?
There are basically two answers to this question. You can obtain them from a supplier in the UK or import the products from another country. Both methods have their advantages and disadvantages. If you are able to do business with a manufacturer or supplier in Turkey whom you can trust and pay for products by instalments, your work gets much easier.That’s how I work. I sell the products that I have bought from several suppliers in Amazon. As it is not possible to work with each supplier that I met, I bring them together who want to sell in the UK and Turkish suppliers who want their products to be sold on Amazon.You can also buy the products from China, suppliers from Alibaba. You can import and sell your products from China to the UK after processes such as finding products in Alibaba, contacting manufacturers, finding samples and negotiating.
You can follow my Amazon FBA sales experience at Amazondasatarmi.com and Amazondanasil.com, if you have any questions, please let me know.