What You Need To Know About FBA: FBA Dropshipping Explained

If you’re into drop shipping, then you’ve heard of FBA? The meaning of FBA is “fulfillment by Amazon.” Amazon’s FBA solutions have become one of the best dropshipping suppliers in recent years. We’re going to talk about what FBA is, and also how we’re going to use it. FBA is a system where people pre-purchase inventory and send it to Amazon.. we’re not going to do that though. We’re going to BUY from Amazon, not sell on Amazon. Just something to keep in mind for the article, because we’ll be bouncing back and forth a bit.

There are 2 million people worldwide who sell on Amazon. The FBA program allows you to take advantage of Amazon’s advanced shipping and fulfillment services. You can outsource product acquisition, quality control, shipping import duties and tarrifs, monthly warehousing fees, and monthly fulfillment costs to other businesses. You pick up the product once it has landed in the FBA warehouse, already barcoded and SKUs.

Around half of Amazon’s sales come from third-party sellers. If you look at the top 10000 vendors, you will see that 66% of them use Amazon’s fulfillment by amazon.

Now, DropshipUSA works with dropshippers and help them integrate FBA solutions on their website. So we took it upon ourselves to let you know all there is to know about FBA.

There are many benefits and disadvantages to FBA depending on how you use it. We’ll dive into some of the finer details about Amazon FBA, and how you can use FBA to dropship.

What Is FBA & How It Works

Amazon is one of the best order fulfillment solutions out there right now because of these reasons. The company has 300 million active users and 90 million prime customers. This results in a TON of suppliers sending their product to Amazon FBA, and outsourcing the warehousing and logistical aspect of their business to lower overhead and become more competitive on price. More products means more competition. On the retail level, that means lower prices.. lower source costs. You see it starting to come together?

Here is how fulfillment by Amazon works:

As you can see, Amazon handles most of the work. However, there are things that you, as a seller, have to do. Here they are:

We side step these issues with out DropshipUSA websites by allowing other vendors to go through that whole process for every single product, and just intercepting them at that point in the supply chain.

With a catalog of 350 million products, fulfillment by Amazon is an e-commerce retailer’s heaven.

Now that you know how it works, you should look into FBA as a dropshipping program for your e-commerce store.

There are benefits and disadvantages to everything, and FBA isn’t any different. In the following passages, that’s what we will discuss. So let’s get into it.

Fulfillment by Amazon (FBA) Benefits

We’ve been saying that FBA or fulfillment by Amazon is a fantastic e-commerce solution for retailers. So why do we say that? Well, here are some of the benefits of FBA:

So we told you all about the benefits of FBA. Now let’s talk about the disadvantages of FBA. Trust us; there are a few out there.

Fulfillment by Amazon (FBA) Disadvantages

FBA or fulfillment by Amazon is an e-commerce miracle. It sells many products. Half of their sales come from Amazon products, and half comes from third-party sales, but all goes through Amazon.

However, something as fantastic as FBA has a few disadvantages. So let’s check them out:

FBA Is The Solution That Works Because We Don’t Sell On Amazon, We Buy From There.

We can build you a fully automated successful dropshipping business with FBA integration. No need to pre-purchase inventory, ever.

If you have any questions about dropshipping or FBA in general, feel free to attend our FREE webinar at learn.dropshipusa.io/webclass.

You can also send in your questions in the comments below, or you can also hit us up on our socials. With that being said, we arrive at the end. We will come back with something new for the dropship nation soon. Until then, see ya!

Originally posted in: https://dropshipusa.io/blogs/news/what-you-need-to-know-about-fba

Freelance Writer | Entrepreneur | Digital Marketer