- Should you use FBA?
An obvious place to start is deciding whether you should even use FBA. There are pros and cons for all businesses, and not everyone will reap the benefits of being an FBA seller.
But, if you fall into an appropriate category, having Amazon handle your shipping and inventory can be a massive advantage.
- Know your Numbers
Being on of Amazon’s FBA sellers comes at a cost. Specifically, you’re looking at inventory storage and handling costs, among other things. Will FBA costs match your projected profits? Will this lead to a worthy growth in sales?
Make sure you crunch these numbers before jumping into FBA selling. It’s a business decision, after all, and needs appropriate planning. There are numerous FBA calculators for seller to estimate investments & Profits.
- Know your Seller Strategies
As an FBA seller, you’re automatically eligible for Prime delivery. Considering Prime members in the US spend more than double compared to non-Prime members, this can make a big difference.
But, it doesn’t stop there. Amazon FBA has numerous bolt-on services, including Subscribe & Save and Small & Light. Look into these to see whether you’ll benefit from them.
- Plan your Inventory
Proper inventory management is crucial for all FBA sellers.
Once you launch a product on Amazon, you must ensure there are good stock levels in the warehouse. Amazon stores and ships your products, so you never want to run out.
As such, make sure you know how much you’ll sell each week and month (see point 2). Also, have a plan to deal with delays to Amazon’s warehouses and for importing into the UK.
The bottom line is that you must always have stock available for Amazon to ship.
- Is your Product FBA Friendly?
Some products just aren’t appropriate for Amazon FBA. While there’s a Bulky & Heavy category, even this has its limits (23kg).
Large and heavy items can’t be received or shipped via FBA, so be sure to do some research first.
There are also extra storage fees for hazardous or valuable products. If you’re unsure and want some more specific advice, we can help.
- Is your Packaging Ready for FBA?
Amazon has strict rules surrounding the inventory it receives and stores in its warehouses.
Everything must be safe for its staff to handle upon delivery, which is arguably a no-brainer.
If you’re sending your products directly from the manufacturer, ensure the packaging is suitable. You can check the full list of rules on Amazon’s website.
However, if you’re still not sure or have any specific questions, contact one of our Amazon experts for advice.
- Set Up your Product Listing for FBA
To be an FBA seller, you must adjust your product listing to match. On your Amazon seller central account, switch your products to FBA distribution as a starting point.
Also, check if your products can be scanned via UPC or if they need FNSKU. This is Amazon’s FBA barcode system.
It’s similar to a UPC but is specifically for Amazon’s fulfilment centres. Amazon will automatically generate an FNSKU for your product listing once it’s launched.
So, when you launch a product on Amazon, be sure it has the correct barcode for its fulfilment method.
Make sure you also set up any suitable deals (such as Subscribe & Save) when adjusting your product listing.