March 6, 2023

What is Amazon FBA? How it Works and What it Can Do For You

I'm quite certain you've come across Amazon FBA, but may be unsure about what it is or how it functions. Possibly, you are looking for ways to make money with your business but can't really pinpoint what’s the best path to take. Well – the answer is here.


Since a large number of people are now shopping online in greater numbers, this opportunity is more sought after than ever.


If you’re still unsure, read on and learn about Amazon FBA and the way it functions. We will also talk about how it can be beneficial to you if you opt to join this program so you will have a clearer idea of using Amazon FBA for your business.


What Is Amazon FBA?

Otherwise known as “Fulfillment By Amazon,” it provides a service that permits sellers to keep their items in Amazon's fulfillment centers and have them directly sent to buyers. This helps avoid the stress of dealing with requests, storage, wrapping, and delivery as Amazon does it all for you. 

With Amazon FBA, retailers can capitalize on the same prices, avail of huge product choice and comfortable shopping knowledge that purchasers experience when buying items from Amazon stores.

When you think about it, shoppers can buy anything listed in your store with enough confidence in knowing that they will get their items delivered in a timely manner directly from Amazon’s warehouses. With that in mind, you can expect them to be repeat customers in the future.

How does it work?

When a client orders something from your web store, they will find that the item is sourced from Amazon rather than your website or business. This is because Amazon takes on the obligation to fulfill all purchases put through its system with the goods originating directly from one of its distribution hubs.

The consumer needs to first sign into their Amazon account in order to give authorization to payment info. The reason behind this is that all purchases are monitored with the same system like other orders placed precisely on the Amazon website.

After an order is placed, the product is gathered from inventory – stored in a corresponding warehouse – boxed as per customer request (if asked) and dispatched without necessitating any interference from you. Talk about a hassle-free business, right?

What can it do for your business?

With FBA, businesses can take advantage of Amazon's vast distribution network and infrastructure, allowing them to focus on growth, product development, and customer satisfaction instead of shipping products manually. Therefore, the combination of cost savings, increased speed to market, trustworthiness, and quality control capabilities make FBA a great option for growing businesses.

For this reason, outsourcing distribution services is beneficial to companies, both large and small, since it grants them advantages like the following:

  • Reduced shipping time

    With FBA, sellers can mail their products to Amazon distribution facilities, where they stay until a buyer purchases them. When the transaction is finalized, it is fulfilled on your behalf using the quickest accessible delivery method —normally resulting in buyers receiving their orders within 1 or 2 days after the purchase is done.

  • Increased customer satisfaction

    Customers value immediate access to their products as fast as possible. This has caused a boost in consumer satisfaction with FBA orders since they can receive their orders quickly, profit from competitive delivery charges, and have access to Amazon's world-class customer support team should there be any issues


  • Labor cost savings

    Rather than opting for the traditional choices of employing staff or partnering with a third-party shipping vendor, which necessitates extra spending like payroll taxes and insurance benefits, businesses can take advantage of Amazon's fulfillment centers, customer service team, and shipping without thinking about their own delivery process by choosing FBA.

  • Quality control and security

    All goods are checked before being shipped enabling you more power over quality assurance and a strong sense of all inventory levels. This allows you to remain on top of product excellence so you can quickly detect any possible problems. All this helps to enhance operational efficiency and reduce customer discontent by thoroughly checking the quality of products for the duration of the sales process.

Amazon Automation for your business

Apical Ecom Amazon's automated platform puts your money to work and allows you to relax knowing that your financial decisions are under the guidance of a reliable and trustworthy source. 

With our easy-to-use platform, we make Amazon automation simpler and more efficient so that you can focus on other areas of your life with peace of mind.

Not sure what to do next? Hit us up and we’ll discuss how Apical can help you without experiencing the hassle that comes with building, operating, and scaling your Amazon business.

More Articles

© 2022 | All Rights Reserved - APICAL CONSULTING INC.