Here’s What You Should Know
Are you a retailer looking to expand your market reach? Are you someone looking for a business opportunity? Have a product to sell but do not have the facilities to set up shop? Sell through Amazon, by setting up a Fulfilled By Amazon business.
Fulfilled By Amazon Opportunity
Amazon offers you the opportunity to become a part of the Fulfilled By Amazon network of sellers. This means that you ship your inventory to Amazon and they will take care of the storage, packing and delivery of the products and also handle returns.
List your products on Amazon and let Amazon handle all the logistics.
Why Sell Through Amazon And FBA?
For every seller, finding the market for their product is the prime challenge. There is no bigger marketplace than Amazon, with a global reach. Sellers on Amazon get access to this huge marketplace.
Fulfilled By Amazon sellers get access to Amazon’s established and well-oiled distribution network. Once your products are shipped to Amazon, the storage, packaging, delivery, customer service, and handling returns becomes the responsibility of Amazon.
Fulfilled By Amazon sellers also reach the huge Prime membership market, with two-day delivery and free delivery where applicable.
Setting Up A Fulfilled By Amazon Business
When you plan to sell through Amazon, first define the niche or product category you are going to target. If you don’t have your own products to sell, you can buy products that you can sell on Amazon for a profit.
- Select a niche that you are interested in
- If you like fashion and know a lot about it, you can choose to buy accessories at a discounted wholesale price and sell them on Amazon with a markup
- Do some research on Amazon before you begin
- Select popular product categories within your niche
- Look for ASINs (unique products already being sold on Amazon) within that category
- If you find a highly rated product, it already has a demand so you may be able to get your share of the market too
- If a particular product on Amazon is moderately popular but there are very few suppliers, you can fill the gap
- If a product does not have much demand, see if you can improve on that product and repackage it to create a unique niche for yourself
- Find a supplier for the products you want to sell, preferably one who delivers quickly once the order is placed
- Create a listing for the product, with a good product description and clear high-resolution images
- Set the right price. This is where Amazon Repricers can help.
Amazon Repricers To The Rescue
Price is amongst the most difficult aspects of retail, and while selling on Amazon, you need to monitor prices constantly and make frequent adjustments to stay competitive.
Amazon prices can change frequently even during a 24-hour period. Even with a handful of products, price monitoring, and changing become a hard task. Once your business and inventory expand, manually monitoring and changing prices will become impossible.
There are Amazon Repricers that automatically make the price changes. You can choose rule-based repricers. These work on the basis of rules that you set to arrive at the optimal pricing for each product. Still, you will not be able to think of and set rules for all the different metrics that influence price changes.
Algorithmic Repricers have complex algorithms built into them to analyze various factors like market trends and changes, competitor prices, seasonal discounts, etc, Working within your business constraints – for instance, a minimum price below which you will not go – Amazon repricers will adjust prices based on advanced analytics of different metrics. You can also set the frequency of price changes you need, just once per day, or more frequent for fast-moving products, and so on.
Pricing is a major factor in deciding who gets the coveted Buy Box for each product on Amazon, so a good repricer tool becomes essential for Amazon sellers.
Becoming a Fulfilled By Amazon seller can be a good business venture and can also help smaller retailers expand their markets without all the overhead involved. When you decide to sell through Amazon, price monitoring, price optimization, and repricing are vital to staying competitive. So, a good Amazon repricer tool is a necessity for a Fulfilled By Amazon business.