Join Manuel and David as they dissect the true strategies to succeed a reseller in the Amazon marketplace. We answer actual questions from our most successful clients.
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A: FBA is a service provided by Amazon to give its sellers an easy way to fulfill orders. You simply make a shipment to your designated Amazon Fulfillment center, and they will ship your individual products your individual customers.
A: Yes and no, while it is free to sign up and use FBA, they will charge you fees that vary depending on the type of product you have. The fee amount is mostly affected by product weight and dimensions.
A: Amazon takes a percentage cut between 6% & 25% dependent on the category your product is in. For most products Amazon take a 15% cut (This does not include FBA fees).
A: No, if you have the proper facilities and infrastructure in place, you may save money by shipping your products to your customers yourself. But you will have to monitor sales daily to make sure you ship your products in a timely manner. Once you ship the product to your customers you must notify Amazon immediately.
A: After every sale Amazon will add that money to your seller account balance, and every 14 days, Amazon will disburse that money to your chosen bank account.
A: When you fulfill orders yourself, Amazon platform shipping rates apply to media products (books, music, video, DVD, software, and video games) sold by Professional Sellers, and to all products sold by Individual Sellers. They charge these shipping rates based on the product category and shipping service selected by the buyer, and then pass the amount on to you.
A: You must be a member of the FBA program to be Amazon Prime eligible. If you self-fulfill your products, they will not be a part of the Amazon Prime program.
A: You need both. If you’re selling through your own site, then you are missing out on the massive opportunity that is Amazon. However, if you are only selling on Amazon and not your own site, you are putting your business livelihood in Amazon’s hands. Your site is the home of you brand and where you have ultimate control. Think of Amazon as just another retailer. Just like you might want to get your products in Walmart, Target, Costco, etc. to access distribution and new customer bases, the same principles should be applied to Amazon.
A: This is one of the best strategies to become independent of Amazon. You can have most of your product line on Amazon, but you should reserve some exclusive items for your own site to give customers a reason to leave the Amazon ecosystem and to give you access to their first party data.
A: In most cases we recommend FBA because it means your products are automatically Prime eligible and you don’t have to deal with day to day fulfillment yourself. Now, some of our clients have the resources to do self-fulfillment, which is great because they can save money on FBA fees. But most who do this are already selling in large volumes on their own eCommerce site.
This podcast is brought to you by: MGR Agency Scaling marketing for leading digital brands.
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