Amazon FBA Archives | Blogging Heros

The thing which excites most of the offline merchants is the power of the internet. Throughout the year’s people have seen the changing landscape of shopping. Earlier people loved to pay a visit to a shop, but now one can order things from the comfort of their couch. That’s exactly why many retail shop owners are shifting towards online platforms. Not just this, even newbies are trying the power of the eCommerce platform.

When it comes to starting as a newbie, the first thought that crosses everybody’s mind is Amazon. It is one of the largest marketplaces that connect buyers and sellers from all across the globe. Many people love to sell their products on Amazon and for them, Amazon’s FBA model comes as a boon.

The Amazon (FBA) business model is ruling all over the internet. This business model has helped the most sellers out there. Here in this blog, we will discuss Amazon’s marketing strategy for the FBA business.

But moving further, let’s understand what exactly is the FBA model.

More than two million people are using Amazon’s FBA business model.

What is an Amazon FBA business?

An Amazon FBA business allows sellers to choose what item they want to sell, find a vendor, place orders, packaging, and ship their products. The product gets stored at Amazon’s Fulfillment Centers, and Amazon handles almost everything. The service is for third-party sellers who don’t want to look after the fulfillment and shipping. So, in a nutshell, sellers will sell and market the stuff, and Amazon will look after the shipping procedure.

Those who register for Amazon FBA don’t have to worry about anything. Amazon manages everything such as shipping, refunds, returns, item storage, picking and packaging, and more. Now the question must be popping, what if the seller sells something made by him only. In that case, sellers provide their products to Amazon. Amazon will store them and handle all the afterward procedures. All sellers have to do is focus on enhancing sales.

And to bring customers, you need to have a top-notch Amazon marketing strategy. To gain knowledge on the same, you can visit this guide.

Amazon Marketing Strategies for FBA Business Model

If you are starting as a fresher, it can be a little tricky for you to grasp the FBA business model, and indeed to master it, you need to have the right Amazon marketing strategy. Here in this section, we are going to cast light on the same.

1. Title Is Important

One Of the powerful Amazon marketing strategies is adding the title to your product. The title tells a lot about the product. The title is the first thing that buyers will be going to notice. So it should be between 150-200 characters and on point. Some things just need to be included in the title, such as brand name, name of the product, and distinct features of product or size, colors, etc. To get the most out of the title, adding some keywords based on your product is essential.

2. Add Images

Further, images are essential from a buyer’s perspective. Take the effort and time to create high-quality photos for the goods to pique buyer attention and direct them to the Amazon product page. While uploading images on Amazon’s product page, adding product images from a different angle is crucial. Other than this, it is necessary to add an image of the label of the product. Don’t forget to take advantage of Amazon’s zoom feature which allows purchasers to hover over a picture to magnify it.

3. Product Description is Necessary

Title and product description are essential but are not enough to convince buyers. The buyer needs more information before buying the product, and for that, product description comes as a rescue. To attract buyers, you need to mention bullet points of the product on the product listing page. It is best to add at least 5 points, the first three points should focus on the product’s distinct features, and the last two must answer the common questions regarding the product.

4. Enhanced Brand Content

The crucial Amazon marketing strategy is to enhance brand content by using attractive fonts, quotes, line breaks, images, and page breaks. Buyers need assurance before emptying their pockets. That’s why some brands used enhanced brand content at the end of the product page to explain all about the product.

5. Keywords

Further, keywords should not be overlooked in any case. Amazon uses the search terms to verify if the product has a keyword or not. Not just this, they check if the keyword is relevant to the product or not. Keywords help in the ranking of your items. Optimizing the product page using keywords is the best Amazon marketing strategy. That’s it! Now you know all about the Amazon marketing strategies for FBA business. Everything revolves around marketing. You’re battling with many similar types of individuals and items in a fiercely competitive environment like Amazon. So it is crucial to have a marketing plan that will set you apart from the competition and encourage customers to pick your business over others.

Before becoming an Amazon seller, you must keep in mind that there are some key factors that play a major role in determining the success of a business–and they come at a price.

Selling on Amazon fees apply, depending on the type and size of business you have. Therefore, it is smart to have an idea of the cash you’ll have to put up front.

How much money do you need to start selling on Amazon?

Based on a survey carried out by Jungle Scout, new Amazon sellers are expected to spend around $3,836 to start selling on Amazon. This number includes Amazon fees, product costs, and other necessary initial investments.

Remember, this is on average. Many Amazon sellers start with $500 or less and others spend twice as much. This doesn’t mean that one seller will be more successful than the others.

Seller Account Monthly Subscription Fees

When you become an Amazon seller you have two options to choose from:

Amazon Professional Seller Account

It’s only $40/month. It’s for sellers that expect to sell more than 40 units per month. A professional seller account includes a set of tools to manage your business more effectively. This is not available for individual accounts.

The Individual Sellers Account

You don’t have to pay a monthly subscription fee. Every time you sell an item, Amazon charges a $0.99 fee. However, you must keep in mind that, with this seller account, you won’t be able to sell more than 40 items.

Referral Fees

Amazon charges a fee to grant you access to their millions of buyers. The referral fee can range between 8 or 20%, depending on the category you sell.

Selling in the Extended Warranties, Protection Plans & Service Contracts category means a 96% referral fee, while Amazon Device Accessories has a 45% referral fee.

All other categories are way cheaper.

Closing Fees

The closing fee is only applicable to DVDs, music, video games, consoles, software, and computers. There’s ab extra fee of $1.80 per item sold in one of these categories.

Refund Administration Fees

Whenever a customer returns an item, you’ll be refunded the referral fee, if you paid one. In exchange, you’ll have to pay an applicable refund administration fee, which is either $5.00 or 20% of the applicable referral fee, whichever is less.

Fulfillment Fees

Amazon is very serious about customer service; therefore, it provides its sellers with two fulfillment strategies to meet their customer needs: Amazon FBA and FBM.

Amazon FBA (Fulfillment By Amazon) is one of the most popular options since it allows sellers to focus on other aspects of their business while Amazon takes care of picking, packing, and shipping their products. But not only that, but it also handles any situation related to customer satisfaction.

For Amazon FBA, the fulfillment fee is based on the dimensions and weight of your product. The amount you pay can go from $2.41 for a standard-size small package (10 oz or less) to $6.00 for a standard-size large package (3 lb. to 21 lb.).

Monthly Storage Fee

The monthly storage fee also depends on the dimensions of your product. It’s calculated depending on the space you use in the Amazon warehouse.

This fee varies depending on the season. January to September you can expect to pay $0.69 per cubic foot and from October to December, the price is $2.40 per cubic foot.

Long-Term Storage Fee

Amazon runs an inventory cleanup on the 15^th of every month. When your inventory has been stored in a fulfillment center based in the US for more than 365 days, you’ll have to pay a long-term storage fee. The amount can be of $6.90 per cubic foot or a $0.15 per-unit long-term storage fee, whichever is greater.

Shipping Fees

If you’re fulfilling orders yourself, though FBM (Fulfillment By Merchant), the shipping fees will vary depending on the carrier you choose. This will also have an impact on the shipping rate you set up for your customers.

Each carrier has different prices. However, once you have a shipping plan, you can have access to Amazon partnered carriers’ fees.

Other Amazon Costs

Besides the fees you’ll need to cover to kickstart your Amazon business, you’ll also need to invest in the following:

Samples: around$100 each

Samples are imperative when choosing a supplier for your inventory to check the quality of the product

A rule of thumb is that each sample will cost you around $100. This is to cover the manufacturing and shipping costs. That’s from the supplier to your doorstep in five days or less.

Inventory:around $2,000

Most suppliers have a Minimum Order Quantity (MOQ), which is usually 500 units.

If we assume our product will cost about $4 per unit, including the product cost and shipping. Then you can expect to pay $2,000 for the 500 units of your initial inventory.

Final Thoughts

Starting a business is pretty exciting, especially one that you can manage from the comfort of your home. However, you must keep in mind all the Amazon fees we mentioned above before making any hasty decision. Plan ahead of time, come up with a specific budget and stick to it, create a list of all the possible setbacks you will encounter along the way, and don’t forget to establish realistic expectations. Good luck with your selling journey!

Amazon FBA

Most Effective Amazon Marketing Strategies for Your FBA Business