Amazon FBA is the most popular fulfillment method among Amazon Sellers. If you want to start sending your products to FBA then you have come to write place.
In this article we will look at Amazon FBA, it’s Benefits, Challenges and other factors.
- What is Amazon FBA
- Advantages of FBA
- Challenges of FBA
- How to Register for Amazon FBA
- How to Create FBA Listing
- How to Send First FBA Shipment
- Life After Registering for Amazon FBA
- Final Thoughts
What is Amazon FBA
Amazon FBA is a Fulfilment By Amazon program created by Amazon for it’s sellers. Using FBA, sellers can increase their sales while giving best delivery time to customers.
After enrollment in FBA you need to send Your inventory to Amazon warehouse for storage. When the order will come for your FBA product, you do not have to do any order processing from you side.
Amazon will take care of order processing and customer service too.
Advantages of Amazon FBA
- Less Number of Staff : If you are getting 3,000 orders per month, you don’t need to keep more then 2 packing people and 2 person to manage operations. However, if you are in Easy Ship for 3000 orders you will need 4-5 packing people and 1 person to manage operations. You can control your staff cost easily with FBA.
- Less Warehouse Space: Real state costs are already too high in India. Imagine processing 3000 orders per month you will nedd to store that much units in your warehouse plus you will need space for daily staff operation plus need to keep packing materials. All this costs can be very minimal with FBA. Since you will be keeping you inventory in FBA, you can directly ask you supplier to pack products as per you specification and directly send inventory.
- Auto Damage Reimbursement: If your products comes jn damaged condition then amazon do the auto reimbursement based in Fair Market Value of your product.Which is great as this can easily remove hours of work from your bucket. You do not need to claim individually, Amazon automatically do that for you.
- Less Weight Handling Fees: If you compare the shipping fees in easy ship with weight handling fees in FBA, you will that FBA weight handling fees are ₹10 cheaper then that of Easy Ship shipping fees. You can check Easy Ship shipping fees here to FBA fees.
- Amazon Fulfilled and Prime Tag: All your FBA products will show prime tag and fulfilled tags. Prime products are also eligible for one amd two day fast deliveries. This increase your listing conversion and give high visibility to your products.
Challenges of FBA
- Inventory Management: If you send stock to FBA, then inventory management becomes a big issue specially if you are selling combo packs. Restocking inventory on time is also one of the challenging task. If you do overstock then you will be paying unnecessary storage fees. If you send less inventory you lose on sales, specially during peak season.
- No Customer Contact Details: In FBA you will not get customer phone numbers. This can become an issue for sellers whose product require some kind of technical knowledge to use the product. Though this can be solved be inserting pamphlet or contact tags inside the product.
- Removing Unfulfilled Units: If your units are getting marked as unfulfillable by Amazon then you will have to recall the inventory from FBA warehouse. In a typical case you will be charged ₹ 10 per units. This is not a much headache. But you will have to apply for claims if any of your units is missing from order or customer have returned a completely different product.
How to Register for Amazon FBA
Before registering for Amazon FBA. You need to to register on Amazon. See our guide on How to Sell On Amazon for all the steps and documents required for amazon registration.
Below are the steps for FBA registration:
Step 1: Go to Amazon
Go to Amazon and click on “Join FBA” button
Step 2: Select State
After that you need to select FC’s (Fulfillment Center) names where you want to send your inventory. Select the State name and Click on “Add FCs”
Step 3: Select Fulfillment Center
Once you select the desire state. You will need to select FCs where you want to get registered for. We recommend that you register for all the FCs for a particular state and specially for your home state.
Step 4: Enter business and GST details
Next you need to enter your business details. As you will have to take new GST number for state where you want to register, you need to enter GST details of your business for that particular state.
Enter Legal Name(As per GST Certificate), GSTIN (Upload GST Certificate), Enter business address as per GST certificate. and click Continue
Step 5: Register for APoB in GST
You need to show Amazon FC address as your addition place of business to government under GST Act. So you will have to register for FC address as Additional Place of Business (APoB).
You have two option to register either by self, or take help of professionals like CA.
Since the process is pretty easy you can do it your self as well. Once done click Continue.
Step 6: Upload GST Certificate
Upload a digital image of your signature, select default Product Tax Code which will be applied to your products.
Next Upload GST certificate once GST department update APoB address in your GST certificate.
Click complete the Application.
Remember it can take upto 15 days for GST certificate to get updated with APoB addresses. So if you don’t want to wait for 15 days and want to start selling on Amazon FBA immediately, then in Step 5 select first option and hire an Amazon Professional.
Doing this will enable you to send your inventory without waiting for GST certificate and you can start selling and increasing your sales immediately.
If you want to increase sales you can checkout AMZIndiaProfit Software
How to Create FBA Listing
Before you send your products to FBA, you need to create your FBA listings first. If you want to send your existing Easy Ship products to FBA then you can covert your listing to FBA.
Steps for Creating Your FBA Listing
Step 1: Create New Listing
We have already discussed in our How to Sell on Amazon article about how to create new Amazon Listing
Login to your Seller Central and go to Catalog > Add Products > Create a new product listing > Select Category and continue.
Step 2: Fill are the Required fields in all tabs
You will be presented with some list of fields that you need to update with your product information. All the fields marked in Red are required fields.
Step 3: Select FBA for fulfilling orders
Go to Offers Tab and select “Amazon will ship and provide customer service”. This option will decide if this is an FBA listing or not.
Step 4: Click Covert
Go to Manage Inventory and drop down button after Edit button.
If you want to convert your existing listing to FBA you can do that simply by selecting “Change to Fulfilled By Amazon”
Step 5: Provide Mandatory Information After Converting
Once you select Convert to Fulfilled By Amazon for existing listing then Click on “Convert” and Provide Dangerous goods information and Click Save and Continue.
After some time you will be able to see your new FBA listing Under Manage FBA Inventory menu.
Note that every FBA product have a unique FNSKU number. This FNSKU is unique across Amazon Fulfillment Network across India.
I hope you are done with creating your first Amazon FBA Listing, next let see how to send your first FBA Shipment.
How to Send First FBA Shipment
Before you start creating your first FBA Shipment, start by finding cheap courier service who can take deliver your FBA shipment to FBA warehouse.
It is very important that you count the cost of sending the goods to FBA center. As it will affect your FBA profit margins.
Below are the steps to create your first FBA Shipment.
Step 1: Select Listings
First go to Inventory > Manage FBA Inventory and Select All the products that you want to send to Amazon warehouse in this FBA shipment.
Once selected, Click on “Action on X selected”
Now, click on “Send\Replenish Inventory”
Step 2: Select Amazon Warehouse
Select Amazon Fulfillment Center where you want to send your goods. Click “Continue to Shipping Plan”.
Step 3: Fill Quantities
Fill in the quantities of the products that you want to send to FC and Click Continue.
Step 4: Select Preparation Guidelines
Next select product preparation guideline which show how do you want to send your products to customer.
Say if you have a fragile product that you want amazon FBA team to pack in a way that will not break the product during transport then select your preparation guideline accordingly.
And Click Continue
Step 5: Print FNSKU Labels
Now it is time to print FNSKU labels for all your products and print them to A4 size sticker paper.
If you are new and don’t have budget for Sticker Papers then you can print them on plain A4 paper and cut using sharp cutter (you can get one from stationary) and stick FNSKU to your product using plain transparent tape.
Step 6: Review Your Shipment
Review your shipment and product quantities to and proceed further and Click Continue.
Step 7: Prepare Shipment
Now you need to print FBA Shipping labels that you will have to stick on all the carton box in which your products are packed.
Enter how many carton box will you be sending and click on print. You can print FBA Shipping labels or Box Labels on an A4 sticker paper or Plan Paper or Barcode printer.
Now wait for the pickup person to come. They will take all your boxes and deliver to Fulfillment Center as per the appointment take by your or your courier service provider.
We suggest you to always go through the Courier partners as sending the Shipment your self and booking an FBA appointment can create more headache for you.
If you are sending FTL (Full Tuck Load) shipment then it will be cheaper to take your own transport vehicle.
Life After Registering for Amazon FBA
FBA can help you automate your business so that there is no need to be sitting in the office all day.
Since there is no need to pack daily orders, just need packing of FBA shipment in bulk. It frees up lots of your time, which you can use to improve your sales, launch more products, find new sales channel for your products, etc.
If you want to go on a vacation then send all 1 month worth of inventory to FBA and enjoy your vacation.
FBA is my first choice when in comes to Amazon Selling.
If you are totally new to Amazon, you can start with Amazon FBA program.
If you have a job and wants to start a side income, then also Amazon FBA can help you alot.
You just need to give your Sundays to FBA and daily 1-2 hours of work.
If you found this guide useful, please appreciate in the comments. If you need help with anything you can always reach out to me through chat or comments.
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