If you’re already selling on Amazon, it is likely that you are ‘Merchant Fulfilling’ your products. But there is a much better option on the Amazon online platform that can help you generate more sales and ultimately make your business grow. The answer is Amazon FBA.
Amazon’s FBA (Fulfilment by Amazon) service frees up the sellers time and offers a wealth of benefits, which includes managing the logistics of the products you sell. In other words, when you opt for FBA, you send your products to an Amazon fulfilment centre (AFC) where they will be stored, and then Amazon will pack and ship your goods to the end customer on your behalf. They also manage your customer experience and handle any returns, saving you a great deal of time and effort.
So if you’re looking to become an Amazon FBA guru, here are a few tips and things to consider to get you ahead of the game.
- Win the Buy Box
Approximately 85-90% of sales are acquired by the seller who is in the Amazon Buy Box. The box is located on the product detail page where customers begin the purchasing process. When a single product is offered by a number of different sellers, it is these sellers that compete to be in the Buy Box. Amazon has a complex algorithm for capturing the Buy Box that is never revealed to its sellers, but there are a few ways to ensure you get the top spot. For example:
- Be the lowest price including shipping.
- Sell a unique item.
- Use Amazon’s bundling policy to create unique items.
- Give plenty of accurate detail on the products you are shipping
This may seem like an obvious one, but if there is even a slight discrepancy between the item sold and what you have described in your listing, then customers are likely to notice. Customers can be very quick to complain, which can result in returns, negative feedback and account suspension warnings from Amazon.
- Be sure to label your shipments correctly when sending to FBA
It is a good idea to double check that each item has the correct label when you are sending to an Amazon storage facility. Amazon will assume your labels are correct and send out items based on the label. The only way you’ll know if you have labelled a shipment incorrectly is when you start receiving negative feedback from customers.
- Follow Amazon’s package guidelines when shipping to FBA
Not only does Amazon work to strict SOP’s but they also operate a rigid booking-in system, including some strict package requirements. We touched upon some of Amazon’s key delivery guidelines in our previous post here.
- Avoid shipping overcharges
Many delivery companies have weight surcharges when the size of a box exceeds certain parameters. Volumetric weight is a pricing technique for commercial freight transport, which uses an estimated weight that is calculated from the length, width and height of a package. A package that exceeds 5000 cubic inches can incur an extra charge. For example, a box that measures 18 x 18 x 18 = 5,832 cubic inches, so this would incur an extra shipping charge. But if you shipped two smaller boxes with the same total weight, then the total charge would be less.
These are just a handful of tips that can be utilised in order to better understand Amazon FBA. Despite the numerous benefits, many sellers are put off becoming an FBA seller due to the number of strict requirements, particularly those concerning shipments to Amazon fulfilment centres (AFCs).
The good news is that sellers can work with experienced logistics companies who understand Amazon FBA Logistics, simplifying the process and ensuring the safe delivery of goods.
How KG Logistics can help
At KG Logistics we offer a simplified delivery service into FBA through strategic agreements with Amazon. This not only makes it easier for you as the seller but also eliminates much of the risk of your shipment being rejected.