Jeff Bezos started Amazon in 1994, and it’s now the biggest online retailer. As of April 2023, Statista reports Amazon had 4.8 billion visits, far ahead of the next popular ecommerce site, eBay, which had 1.2 billion visits that month.
Fulfillment by Amazon (FBA) is a service that lets sellers store their products in Amazon鈥檚 warehouses. When a customer places an order, Amazon handles the picking, packing, and shipping of the product. They also take care of customer service and returns.
The FBA model is straightforward, low-risk, and high-profit. Sellers send their products to Amazon鈥檚 warehouses to be stored until they are sold. When a customer places an order, the FBA system selects the product from the inventory and processes the order. Amazon employees pick the product from the warehouse, pack it, and ship it to the customer. Amazon handles customer service for the order, including returns and refunds.
Many people prefer using FBA because it offers several benefits like Prime Eligibility, Scalability, Customer Trust, and Global Reach. Amazon鈥檚 vast customer base makes it challenging to match independently.
Starting an Amazon FBA business involves making a business plan, conducting market research, choosing a product, finding a reliable supplier, creating an Amazon seller account, marketing the products, shipping them to Amazon’s warehouses, and creating product listings. High-quality listings can significantly impact your sales.
Building a successful Amazon FBA business is an excellent way to earn passive income and establish a brand.
