Here’s What You Should Know
Are you a retailer looking to expand your market reach? Are you someone looking for a business opportunity? Do you have a product to sell but do not have the facilities to set up a shop? Then, 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 handle returns.
List your products on Amazon and let Amazon handle all the logistics.
Why Sell Through Amazon And FBA?
Finding the market for their product is the prime challenge for every seller. There is no bigger marketplace than Amazon, with a global reach. Sellers on Amazon get access to this vast 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 of returns become the responsibility of Amazon.
Fulfilled By Amazon sellers also reach the huge Prime membership market, with two-day delivery and free delivery.
Setting Up A Fulfilled By Amazon Business
When you plan to sell through Amazon, first define the niche or product category you will target. Then, if you don’t have your 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 famous, 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 challenging aspects of retail, and while selling on Amazon, you need to monitor costs constantly and make frequent adjustments to stay competitive.
Amazon prices can frequently change even during 24 hours. 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. In addition, you can choose rule-based repricers—these work based on rules 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 costs 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 significant factor in deciding who gets the coveted Buy Box for each product on Amazon, so a good price tool becomes essential for Amazon sellers.
Becoming a Fulfilled By Amazon seller can be a good business venture and help smaller retailers expand their markets without all the overhead involved. However, price monitoring, price optimization, and repricing are vital to staying competitive when selling through Amazon. So, a good Amazon repricer tool is necessary for a Fulfilled By Amazon business.