This is a guest post from Ankitha Nagaraj, the Customer Success Head at SellerApp. SellerApp is an automated eCommerce analytics platform helping sellers with Amazon PPC, listing optimization and product research.
Martha sells pet blankets on Amazon. Her customer reviews are great but the sales are just okay. Why? Because she is facing the same challenge as you!
Okay, let me explain. Your sold products are getting great reviews from your other customers but the conversion rate on Amazon is still not satisfactory. Like Martha, you must also be thinking what to do grow the sales of your product on Amazon?
Then let me ask you the same thing I asked Martha: “Have you thought of signing up with the Amazon FBA program?”
Chances are you already have heard of FBA a ton of times, but you are not sure how it will grow your sales. Or maybe you felt it was best to handle it yourself.
This article will go over the biggest benefits of using Amazon FBA, and how it’ll boost conversions.
We will go over;
- What is the Amazon FBA program?
- Features of the Amazon FBA program
- How does Amazon FBA work?
- Benefits of the Amazon FBA program
What is the Amazon FBA Program?
One of the most innovative fulfillment networks in the world, Amazon FBA is extremely advantageous for Amazon sellers and a huge timesaver. If you join FBA, Amazon will store your products in its warehouses, pack and ship them to your customers, take care of all refunds and returns, and provide customer service for these products.
With the storage, shipment, and delivery handled by Amazon, you’ll be able to focus more on ranking high and generating valuable activities such as optimizing the conversion rate and increasing the traffic on your product page.
Amazon FBA program features
I have been asked this question many a time by sellers, Why does Amazon run a fulfillment center while it makes millions from the selling platform alone?
Does Amazon have to do it? Not really.
With the FBA services, Amazon ensures that it provides high-quality customer service with faster delivery speed, hassle-free returns. For sellers, it benefits in terms of the storage charges, shipping efforts, and returns handling.
With FBA, Amazon ensures it lives up to the expectations of its customers so they get world-class service.
If not for their FBA services, Amazon would have zero control over the quality of services offered to its actual money makers – the customers.
Besides providing superior service, FBA comes with some great features. Though FBA is fairly easy to enroll in, things are not extremely easy on the marketplace itself. The huge seller crowd, along with the cheap overseas manufacturers make it a steep climb to success on Amazon.
Get your listings on Prime
Getting listed on a fast shipping program like Amazon Prime can make all the difference for your listings. FBA product listings with the Prime tag allow Amazon Prime members to get fast, free shipping on those products. Since there are nearly 85 million Prime members who are more likely to buy, this means FBA products are likely to attract more customers than non-FBA products.
Higher search rankings
When it comes to product ranking, the A9 algorithm is said to give preference to FBA products, since Amazon can ensure customer satisfaction. This means that FBA products are more likely to rank higher in search results, thus getting more sales.
In addition to choosing the right product and logistics, don’t forget to optimize your Amazon listings to get higher search rankings and conversions.
More than 90% of Amazon sales are made through the Buy Box, and FBA is critical for winning the Buy Box. Along with other criteria for selecting the Buy Box listing, Amazon prefers sellers with FBA products over others.
The Amazon trust factor
Over the years, Amazon has become a brand that buyers trust more than any product. Thus, buyers have more confidence ordering items that are Fulfilled by Amazon. Amazon’s unsurpassed reputation for its delivery service is another reason why buyers prefer FBA products.
How does the Amazon FBA Program work?
The Amazon FBA process begins by storing your products in one of Amazon’s fulfillment centers. Once the fulfillment is complete, Amazon takes care of your business, and all you need to do is keep restocking the inventory. On a deeper look, this is how the FBA program works:
- You ship your products to Amazon: After you have signed up with the FBA program, label, prepare and pack your product following the FBA guidelines. Then set up a plan in your Seller Central dashboard to ship your stock to Amazon warehouses.
- Amazon stores & tracks your products: After Amazon receives your products, it stores the stock in its warehouses. Amazon distributes your stock among warehouses that are located near areas from where your product sales are greatest to help them deliver orders faster.
- You list your products on Amazon’s website: While Amazon stores your products, your job includes adding them to the Amazon web store and marketing them at different avenues.
- Customers buy your products: As soon as a customer buys your product on Amazon, the order is sorted and sent for fulfillment.
- Amazon ships & delivers your products to the customers: From Amazon’s warehouses, the products are picked, boxes are packed and labeled, and items dispatched to the buyer’s address.
Benefits of Amazon FBA
There are several benefits to signing up with the Amazon FBA program. FBA is not only cost-effective, it also gives the sellers more time to focus on expanding their business.
Fulfillment by Amazon (FBA) is a service that helps you build up sales and feedback more rapidly. Compared to your competitors that are relying on traditional methods, this gives you an added advantage when it comes to generating revenue.
Frees you from the hunt for warehousing and space
Amazon FBA allows you to store your inventory at their warehouses. This saves you the time it would have taken to research and rent a storage space, or block a room in your home to store items.
Saves money and time
With Amazon handling the packaging and shipping of your products to customers, you don’t have to spend money on packing material or labor. Amazon makes sure that your products arrive in great condition, saving you money and hassle.
Amazon handles customer service
Amazon handles all inquiries and complaints on your behalf. When it comes to customers, Amazon is dedicated to providing the best experience.
Increases sale margins
Most FBA products are Prime eligible, which means customers who have Prime accounts gets free and fast delivery. These factors instantly make your products more attractive to the buyers. And the best part is, with FBA you do not have to pay anything extra for Prime delivery.
The Amazon FBA program has a sister, called multi-channel FBA (MCFBA). Multi-channel FBA allows you to keep your stock with Amazon, and fulfill with other marketplaces. You’ll need to create a fulfillment request and provide the order number and customer’s address. After that, Amazon takes care of the packing, shipping, and delivery on your behalf.
However, multi-channel FBA isn’t allowed on all marketplaces. For example, eBay and Walmart don’t like that MCFBA uses Amazon-branded boxes, which hurts their own brand recognition as eCommerce marketplaces. MCFBA is also more expensive than regular FBA, so watch out for those rates.
If you’d like help expanding to other marketplaces, Deliverr is an FBA-like fulfillment service with direct integrations to fast shipping programs like Walmart 2-day and eBay Guaranteed Delivery. Create your free account today.