Currently, Amazon is the largest marketplace around the world. In fact, Amazon Advertising has given it a very remarkable boost. If you sell online, you have most likely considered using Amazon. However, for this, you must know the sales models at the logistics level. We will tell you about this and many more details below.
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Amazon FBA
Amazon FBA is a platform that allows you to make sales easily and simply. Because this site takes care of all the management. For example, shipping, inventory, and customer service. All the seller has to do is provide the product. To start in this world, you must follow these steps:
First, create a professional seller account.
Then, register in the Amazon sales center. Here, you must choose the account that best suits your needs.
Make a list of all the products. Go to Inventory and then to Add a product. Search for the item by name or barcode. Currently, Amazon has a very large catalog. Therefore, you are sure to find what you are looking for.
When you find your product, you will see more options from other sellers. Here you must choose one and start filling in the form with the data. You will also need to add the price and images.
You should start preparing the products so that Amazon can pick them up. In order to take them to their warehouses.
Now when shoppers search, your products appear on Amazon Prime. So, if the user places an order, this platform takes care of all the management. We are talking about shipping, returns, and customer service in the event that it is required.
Individual or Pro
When creating your account, you must choose between the Individual or Pro option.
Individual plan: Recommended for small quantity sales. Specifically less than 40 articles per month. In fact, the main advantage is that it eliminates the monthly subscription fee. Therefore, you only have to pay for the items that you sell. The closing sale fee is 0.99 for each item. But, with an additional percentage on the sale price. For electronic devices, this percentage is 7%. While for Amazon device accessories it is 45%.
Pro Plan: Ideal for people who want to sell more than 40 items per month. Here, the monthly fee is $ 39. But, the sales closing fee is eliminated. In addition, this plan also offers other additional benefits.
- Add new products to the Amazon catalog.
- Possibility of selling products in all categories.
- Also, all products will be available with the one-click purchase function.
- On the other hand, it is possible to access files and reports for each of the orders.
- You can even upload inventory and products with automated tools. For example, those specifically for high-volume uploads.
Amazon FBM
Amazon FBM also allows you to sell your products. But, here the difference is that you take care of the logistics yourself. The process is just as simple:
Upload your inventory.
Customers search and find your products.
Then users buy your products.
Here, you will have to send the products to the customers yourself.
And finally, you get paid.
How have you noticed, in this model you have more control. Even higher margins are possible. Because you won’t have to pay a monthly fee or a closing fee. However, in this option, you have a very great responsibility. For example, you have to take care of the packaging. Also about customer service and shipping values. Your products may not even appear in Amazon Prime benefits.
Which selling model is better for you?
The model you choose will depend entirely on the characteristics of your business. Here is a summary of the advantages and disadvantages of each. In order for you to make the best decision.
Amazon FBA
Advantages
This option builds credibility among users. Because the products are presented as distributed for Amazon.
Without a doubt, the management is less complicated. Here, Amazon takes care of all things like refunds or packaging.
It is possible to start selling the products without having to create an online store. Also, anyone can create an account. They can choose the plan that meets their needs.
Also, it is easy to reach international markets. Because this platform sells in all countries around the world.
You can increase sales by offering benefits such as a one-click purchase. Also, one-day delivery or free shipping.
Disadvantages
One of the biggest disadvantages is the commissions. Because they take a good part of the profit margins. Therefore, this can prevent your store from being profitable. Also, you can’t raise prices too high here because the environment is competitive.
The organization is simpler, nobody can deny that. But, this does not mean that you should completely ignore the subject. You will constantly have to make sure that there are still products in Amazon warehouses.
Amazon is an intermediary for payment. Therefore, if there are customer complaints, this may be delayed.
Amazon FBM
Advantages
Amazon FBA allows you to have more control over your business. You will be the one who takes into account the inventories, prices, packaging, distribution, among others.
Also, you have a greater benefit. Because you will not have to pay fees imposed by the platform.
In addition, contact with customers is direct. Therefore, you will be able to create your own brand. You will even be able to know the needs of the public in more depth.
Best of all, you won’t be tied to policy changes on Amazon FBA. So once again, we emphasize that you have full control.
Disadvantages
One of the hardest things is competing with Amazon on shipping costs. This is because this company handles large volumes of products.
On the other hand, logistics can become a real headache. Mainly if you have some products in the catalog. And, even more, if you want to distribute internationally.
Apart from everything, getting listed on Amazon with all the benefits of Prime is a complicated task.
You may also be interested in How to create an account on Amazon FBA? Click here.
