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| AMAZON FBA |
Amazon FBA | Full Explanation 2021: How to Sell and Profit from Amazon FBA
Amazon FBA is one of the most popular e-commerce methods launched by the Amazon company, which has allowed tens of thousands of Internet goers to be merchants without the need for large capital or the need for shipping warehouses and stores of the goods and products being sold.
What is Amazon FBA?
Amazon is the largest e-commerce company in the world, and in fact it is not one company, but more than 70 companies that deal by selling and shipping through the Internet, and in the recent period, Amazon entered the Arab region and bought the Souq.com website, which was considered the largest site For online selling in the Arab region, the company has launched the Amazon FBA platform to attract more customers to it.
FBA is an acronym for Fulfillment by Amazon, an idea launched by Amazon in 2006 and this idea is that it allows you to buy the products you want in the quantities you want and then ship them to Amazon warehouses, and therefore you do not need special and expensive stores for the goods and products that you want to Store them, and after shipping these products to Amazon warehouses, the company packs the product on your behalf and ships it to the customer whom you want to sell the product to, in return for a commission that Amazon collects from you.
Amazon FBI has allowed
many users of the Internet to practice e-commerce and buy and sell through the
largest e-commerce company in the world, which is Amazon.
Amazon FBI and traditional trade
In the world of traditional commerce there are three types of merchants:
B2B Merchants: They are wholesalers who buy products in bulk and then store them in their warehouses and then sell them to smaller merchants.
B2C Merchants: They are retailers who buy from a wholesaler in specific quantities and then sell them by one or more pieces as desired by the customer.
Importers: They are
larger than wholesalers, as the importer travels to the country that produces
the goods that he wants to deal with, which is mostly China because it is the
largest and cheapest country in the world as well, then the importer buys the
product in large quantities and ships it to his country and leaves it in
Warehouses and stores, then sells them to wholesalers.
Advantages of Amazon FBI
Amazon FBA allows you, in short, to be one of the importing merchants, but without the need to travel to the country producing the goods or the need for warehouses and warehouses for the product, but Amazon performs this task on your behalf and leases its stores to you and ships it to customers who order the commodity via the Internet for a fee It is acceptable in the world of e-commerce.
The Amazon FBA platform is distinguished by that it offers many storage options, as the company has warehouses in America, warehouses in China, and warehouses in Germany and Europe in general and in many other countries, and thus it saves a lot of time in shipping the product upon request.
What does it take to be a subscriber to Amazon FBI?
In fact, you do not need much to become an Amazon FBA customer, it is simply required of you:
- A computer or laptop to use it.
- Direct internet connection.
- Medium capital and it is not required that the capital be large.
- To open a seller account on Amazon FBA.
- A good study of the commodities and products that you want to deal in, the market situation, and the best places to sell them.
- Searching for merchants in the country from which you want to import the product, which is mostly China, and paying attention to this step is of a high degree of importance so that you do not fall victim to a fraud or deal with a merchant who deals with the drop shipping system.
- Searching the Internet for the best price for an item and negotiating with the merchant to get the best price advantage with which to compete and promote the product.
An example of an Amazon FBA sale
I logged into an Amazon account as a customer. I want to buy a certain item from Amazon, which is a wireless gaming headset.
The price of this headphone on Amazon is 26 euros, and it is written next to the Prime speaker, which means that it is in the Amazon warehouse, meaning that the headset is included in the Amazon FBA.
When entering Alibaba, a Chinese site that specializes in selling products and goods at the wholesale price, I found that the headset with the same specifications and shape costs 8 euros if you buy 500 pieces of the product.
This price is not a final price, but rather, negotiations can be entered into with the merchant to reach the lowest possible price.
Here we have a headphone, the selling price for the customer on Amazon is 26 euros and a wholesale price of 8 euros, meaning that the difference is 18 euros.
In the case of purchase through Amazon FBA, the company ships the product to its warehouse in the country that I specify, and stores it, packaging it and delivering it to the customer upon purchase
Suppose that each piece costs 2 euros for shipping charges, and Amazon FBA also receives a commission and packaging of 6 euros.
In the end, you will find that the item costs: 8 purchase price + 2 shipping cost + 6 Amazon commission = 16 euros, while selling it at 26 euros, so if you calculated taxes for the country in which you sell the product, you will find that the profit for one piece may exceed 6 dollars profit Net, and you do not need stores or warehouses or travel and accommodation costs.
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