![]() Prime Shipping – Your product will be offered under ‘Prime Shipping’ meaning a consumer who is signed up for Prime can get your item within one business day.Consumer confidence – Offering your item to consumers under the FBA umbrella provides your shoppers with a sense of trust and confidence that their items will be shipped in a timely and professional fashion.Multi-channel – FBA is not a service which is exclusively meant for Amazon, online merchants can use this service for their Shopify or personal web stores for example as well.Convenience – Amazon will take care of all the shipping and storing logistics which will free you up to source your items and grow your business.What are the pros and cons of Fulfillment By Amazon ? The pros include: Amazon is known for their logistics capabilities and created a new standard in eCommerce when it comes to delivery times.īut in terms of defining what Fulfilment By Amazon is, the bottom line is that FBA is a storage and distribution service provided by Amazon to sellers. It is important to note that Texas is just one example as Amazon has many distribution centers around the world covering the vast majority of locations relatively quickly. Amazon will store your item until it is purchased at which point they will send off the item to your future Texas based customer. Essentially, sellers send in their products to an amazon storage and distribution center close to their main customer base, say Texas for example. If you are an amateur seller or just starting out then definitely go for the Individual account but if you are a seasoned e-commerce business person and deal with high quantities of merchandise the pro account is for you.įor those of you who have not yet heard of this or simply don’t fully understand, Fulfillment By Amazon otherwise known as FBA is a service Amazon provides its sellers. Pay $39.99 a month no matter the quantity ![]() Inventory management and integration features available The Individual account is very limited and does not include many features and perks that the Pro account offers: Individual Account:Ībility to sell up to 40 products a monthĪlmost Unlimited amount of categories to sell in But if you are selling 60 products then 60 divided by 40 is $0.66 per product.ĭifferences between individual and professional account ![]() I can easily demonstrate this : if you sell 42 products and are paying $40 a month then 40 divided by 42 is $0.95 per product. Logic dictates that if you are selling more than 40 products a month it is worth your while to sign up for a Pro account as the more products you sell, the less it will cost per product. Selling as a Professional means that you pay $39.99 a month but you do not pay Amazon per product per sale. Selling as an individual means that every time you sell a product you will need to pay $0.99 fee on each product but no monthly fee. The two options you have on Amazon is to: This fee is in addition to the referral or minimum referral fees you need to pay. This fee is a flat fee of between $1.35 and $1.80 on products which Amazon deems ‘media’. On the other hand if your t-shirt was selling for $5 meaning the referral fee comes out to $1 then you would not pay the referral fee rather you would pay the minimum fee of $2 since this is the greater amount. This means the referral fee is $19.5 but the minimum referral fee is say $2 – since the referral fee is greater than the minimum fee, you only pay the referral fee and do not pay the minimum fee. ![]() Say you are selling a t-shirt for $100 and the referral fee is 19.5% because you fall into the ‘Apparel’ category. If your category has a minimum referral fee you will either pay the minimum referral fee or the referral fee itself (a percentage of the product) but not both. This fee is applied only to specific categories and ranges from $0-2. Pay close attention to this as well as other factors in order to reduce Amazon fees. As you can see, referral fees vary drastically and it is very important to know what percentage of your listing price is being payed to Amazon.
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