FBA (Fulfillment by Amazon) is a service for online sellers that assists with storing and shipping products. As one of the most advanced fulfillment networks globally, Amazon acts as the warehouse for storing inventory and processing orders on behalf of sellers, providing a lifeline to eCommerce sellers needing that extra capacity.
Whether you’re a small or medium-sized business, having FBA as part of your fulfillment strategy will allow you to focus on strengthening other areas of your business with growth goals in mind.
In this blog, we explain everything you need to know about FBA in 2021. We’ll cover why it has become a seller necessity and what’s included in the world-renowned service.
What is FBA, and Why is it Effective?
Once signed up to FBA, you’ll need to ship your inventory to an Amazon fulfillment center that allows your products to be stored safely. Amazon will pick, pack, and send the order to customers when a new order is made. Amazon can also conveniently manage return requests and help alleviate the back-end logistical concerns using their customer service. In addition, having Amazon store your inventory takes the stress away from finding your own warehousing location, safe in the knowledge that FBA is handling your product deliveries.
Why you Should Consider FBA
Sellers will see snowballing benefits when granted the capacity to offer their customers free and fast shipping. When Amazon Prime users filter the search to see Prime products first, it puts your products at the top of the search results - increasing the chances of your products being purchased. With FBA providing free and fast shipping for buyers, your product pages will rank higher and likely boost sales. Sounds ideal, right?
You’re probably wondering if there’s a catch and what the costs are.
The Fee Breakdown
Fees for FBA vary depending on:
● Product size
● Weight
● The country where the products are stored.
Additionally, the fees include weight handling when the products are shipped, based on the cubic square foot of storage. Finally, if you decide at any point to remove your stock from an Amazon warehouse, there’s also a charge.
If you’re unsure about FBA, you could always calculate the time and money required to pack and ship the products yourself. As a result, you might be saving your business even more money.
How PingPong Seamlessly Syncs with Amazon
Go one step further and make your payments even more effortless. As an approved provider in Amazon’s Payment Service Provider Program (PSPP), PingPong is a reputable and trusted resource to Amazon sellers to receive funds and send money.
By creating a PingPong account, you can set up local currency-receiving accounts for each location that you operate in and tap into new markets. When you connect your PingPong account to Amazon Seller Central, you’ll be able to receive best-in-class foreign exchange rates and make transfers when the time is right for you.
If you want to take your eCommerce business to the next level, find out more here and talk to our team today. Stay up to date on our latest news and insights by following PingPong on Twitter, Facebook and LinkedIn.