New is Cool! (In case you haven't heard.) New is always the next best thing, right? So you, our friends, are the next best thing! Below you'll find some info helpful for newbies to Amazon that will boost you from Newbie status to not-so-newbie status.
Please be aware this page is under construction. We promise to bring way more helpful information as soon as possible!
What is Amazon FBA?
Farm Broccoli Apples? Face Butts Attitude? Fungus Bacteria Analysis? What the heck is FBA?
Fulfillment By Amazon
Ohhhhhhhhh!!!! Right?! Ok so... what exactly does that mean? In a nutshell: You buy products (preferably at a nice discount) to re-sell, you send them to amazon, a Customer orders the product from Amazon, amazon sends the order to your customer, Amazon pays you. It's that easy!
So the longer, more "SEO friendly" answer is: Amazon is a service that simplifies the selling process for entrepreneurs (yes, you ARE an entrepreneur if you're looking into this!). It works on a fairly straightforward premise: Sellers store their products in Amazon's fulfillment centers, and the company handles storage, packaging, shipping, and even customer service! So that means as a seller, you can focus more on your business's growth and less on logistics and operational hassles.
(Please note, you absolutely can sell using Amazon, but ship the items yourself. This option is called "Merchant Fulfilled". And yes, you can do BOTH! Just be aware that you will be responsible for sending the product to the Customer, handling any Customer Service returns or complaints as well as handling refunds for any "Merchant Fulfilled" items.)
What's so great about using FBA? Well, here's a bit more about the benefits:
In addition to allllllll that yumminess, Amazon actually has a wealth of free guides and tutorials, from setting up your seller account to optimizing product listings, not to mention all the personal super informative blogs and sites (like this one *wink*), youtube videos, etc. that hold gobs and gobs of juicy info on all things Amazon FBA.
Some things to consider researching to learn more: Seller strategies, tips and best practices for maximizing success on the platform. Another great resource are online communities and forums dedicated to Amazon FBA. Engaging with other sellers, sharing experiences, and learning from their successes and failures can be immensely helpful.
Fulfillment By Amazon
Ohhhhhhhhh!!!! Right?! Ok so... what exactly does that mean? In a nutshell: You buy products (preferably at a nice discount) to re-sell, you send them to amazon, a Customer orders the product from Amazon, amazon sends the order to your customer, Amazon pays you. It's that easy!
So the longer, more "SEO friendly" answer is: Amazon is a service that simplifies the selling process for entrepreneurs (yes, you ARE an entrepreneur if you're looking into this!). It works on a fairly straightforward premise: Sellers store their products in Amazon's fulfillment centers, and the company handles storage, packaging, shipping, and even customer service! So that means as a seller, you can focus more on your business's growth and less on logistics and operational hassles.
(Please note, you absolutely can sell using Amazon, but ship the items yourself. This option is called "Merchant Fulfilled". And yes, you can do BOTH! Just be aware that you will be responsible for sending the product to the Customer, handling any Customer Service returns or complaints as well as handling refunds for any "Merchant Fulfilled" items.)
What's so great about using FBA? Well, here's a bit more about the benefits:
- Amazon Prime Customers: Are way more likely to purchase your item instead of searching for a lower price because they're already paying for free 2-day shipping. Consider this: Which would you choose? If the item you want to buy is $15.00 including free 2 day shipping would you still purchase the exact same item for $13.00 and pay $6.00 extra for 2 day shipping? Yeah, we wouldn't either. Typically "merchant fulfilled" items will incur shipping fees unless they reach a qualifying amount (usually around $50). So a Prime member would have to purchase at least $50 worth of product in order to receive free shipping, And this doesn't necessarily mean 2-day shipping). This leads to increased visibility and potentially higher sales for you!
- Competitive pricing: Your FBA listings on Amazon.com are sorted by product price with no shipping costs since your products are eligible for free shipping on qualifying orders or Prime.
- Trusted customer service and returns: FBA listings are displayed with the "Fulfillment by Amazon" logo, meaning picking, the correct products, packing them appropriately and with care, delivering quickly, customer service (including concerns, questions, etc.), and returns are all handled by Amazon. Amazon is already renowned for its efficiency. With FBA sellers can capitalize on this network, ensuring prompt deliveries and improved customer satisfaction.
- GLOBAL reach: Amazon is worldwide, so you can be too! Because Amazon has a global presence FBA sellers can tap into that, allowing them to sell internationally without dealing with the complexities of cross-border logistics (unless you know about that stuff, which we absolutely don't so this is a big win to us!)
- Your customers also benefit from a growing assortment of other benefits, such as gift wrapping and an up-to-the-minute countdown for One Day Shipping.
In addition to allllllll that yumminess, Amazon actually has a wealth of free guides and tutorials, from setting up your seller account to optimizing product listings, not to mention all the personal super informative blogs and sites (like this one *wink*), youtube videos, etc. that hold gobs and gobs of juicy info on all things Amazon FBA.
Some things to consider researching to learn more: Seller strategies, tips and best practices for maximizing success on the platform. Another great resource are online communities and forums dedicated to Amazon FBA. Engaging with other sellers, sharing experiences, and learning from their successes and failures can be immensely helpful.
So what do I need?
So what exactly does it take to do this thing?
1. An email address (which we're assuming you have unless you live under a rock, in which case you are likely not reading this)
2. An amazon seller account
3. A bank account And this have to be a business account by the way. But if you plan on making this your full time gig, it wouldn't be a bad idea ...you know... just to keep things clean.
4. Product to send to Amazon to sell cYeah... and believe it or not, it doesn't always have to cost you anything to acquire!
5. Shipping materials to send the product(s) to amazon
6. A printer
1. An email address (which we're assuming you have unless you live under a rock, in which case you are likely not reading this)
2. An amazon seller account
3. A bank account And this have to be a business account by the way. But if you plan on making this your full time gig, it wouldn't be a bad idea ...you know... just to keep things clean.
4. Product to send to Amazon to sell cYeah... and believe it or not, it doesn't always have to cost you anything to acquire!
5. Shipping materials to send the product(s) to amazon
6. A printer
Let's dig a little deeper into the supply List
1. Email
So you're probably thinking, awesome! I totally have one of those already. Get yourself another one. No, seriously. Do it. If you're anything like us, you've probably signed up for every free PDF and blog possible soaking up all the Amazon information you can find. You don't want allllll of that going to your personal email, do you?
We didn't think so. In fact, we're even considering ourselves to open another email account for strictly for the amazon store alone considering how much email we get from everything we've signed up for!
2. Seller account
This is the account that will make it possible to sell things on Amazon. This is something you will create on the Amazon Seller website. There are two types of Seller accounts.
Below is the information provided on each account Directly from Amazon:
"Individual Account" is free (free meaning there is no monthly subscription fee), however you are charged .99 cents per listing (this is separate from the other Amazon fees).
"Pro Seller" has a monthly Subscription fee (as of today, 8.15.16 the fee is $39.99), after your first free month. You are not charged 99 cents per item sold, however you do still incur the same Amazon fees.
Note: the first free month with the pro seller account is only valid if you first sign up with the pro seller account. You will not get the first free month for the Pro account if you upgrade from the free Individual account.
3. Bank Account
Again, you likely already have one of these. But if you're planning on making this thing your real business, this would be a good idea. Eventually you will need to pay taxes and you want to have a clean, un-adulterated account of all your business expenses, including the purchase of product, and your payment from Amazon.
This will also help you have a good grasp on your return on investment and how much you are actually profiting on your efforts. If you invest $100, for example including products and packing materials, etc. and once everything has sold and your payment has been received and you're looking at a cool $500?? Well my friends... you've got yourself some PROFIT!
4. Product
Yes, obvious... right? But we kind of wish we would have went out and really bought MORE product to send in. We felt like we did! But after loading all the items on to our inventory list, we realized we didn't have as much as we thought!
We signed up for the Pro Seller account, so she was really hoping she could send in at least 40 items in an attempt to "make it worth it"... We ended up with a whopping 13! It wasn't as easy to find profitable product as we thought it would be, but that's not everyone's experience! We figure we need to start somewhere and something is better than nothing, right?
5. Shipping Materials
Here's information directly from Amazon about the shipping materials needed when sending your products into Amazon for FBA. This list is updated often, so be sure to check back to confirm you're packaging correctly!
P.S. If you don't want to hassle with packaging your items there are even packaging services who will prep and package your items for you and send them in to Amazon. Amazon also offers this service.
So you're probably thinking, awesome! I totally have one of those already. Get yourself another one. No, seriously. Do it. If you're anything like us, you've probably signed up for every free PDF and blog possible soaking up all the Amazon information you can find. You don't want allllll of that going to your personal email, do you?
We didn't think so. In fact, we're even considering ourselves to open another email account for strictly for the amazon store alone considering how much email we get from everything we've signed up for!
2. Seller account
This is the account that will make it possible to sell things on Amazon. This is something you will create on the Amazon Seller website. There are two types of Seller accounts.
Below is the information provided on each account Directly from Amazon:
"Individual Account" is free (free meaning there is no monthly subscription fee), however you are charged .99 cents per listing (this is separate from the other Amazon fees).
"Pro Seller" has a monthly Subscription fee (as of today, 8.15.16 the fee is $39.99), after your first free month. You are not charged 99 cents per item sold, however you do still incur the same Amazon fees.
Note: the first free month with the pro seller account is only valid if you first sign up with the pro seller account. You will not get the first free month for the Pro account if you upgrade from the free Individual account.
3. Bank Account
Again, you likely already have one of these. But if you're planning on making this thing your real business, this would be a good idea. Eventually you will need to pay taxes and you want to have a clean, un-adulterated account of all your business expenses, including the purchase of product, and your payment from Amazon.
This will also help you have a good grasp on your return on investment and how much you are actually profiting on your efforts. If you invest $100, for example including products and packing materials, etc. and once everything has sold and your payment has been received and you're looking at a cool $500?? Well my friends... you've got yourself some PROFIT!
4. Product
Yes, obvious... right? But we kind of wish we would have went out and really bought MORE product to send in. We felt like we did! But after loading all the items on to our inventory list, we realized we didn't have as much as we thought!
We signed up for the Pro Seller account, so she was really hoping she could send in at least 40 items in an attempt to "make it worth it"... We ended up with a whopping 13! It wasn't as easy to find profitable product as we thought it would be, but that's not everyone's experience! We figure we need to start somewhere and something is better than nothing, right?
5. Shipping Materials
Here's information directly from Amazon about the shipping materials needed when sending your products into Amazon for FBA. This list is updated often, so be sure to check back to confirm you're packaging correctly!
P.S. If you don't want to hassle with packaging your items there are even packaging services who will prep and package your items for you and send them in to Amazon. Amazon also offers this service.
Do I need any fancy businessy type stuff too? You know... like legal stuff?
You will find both answers depending on which page you search for answers, but here's what we think: No, and yes.
No: Why don't you first give this Amazon thing a shot and see if its even something you want to continue doing before you go balls-to-the-wall with the LLC and business liability insurance and all that? It's your call really.
If you feel you'd rather cover your butts in the off-chance some random person will want to sue you for all your assets for sending them a doll with one hair shorter than the rest and you have the extra cash to afford that, then by all means stay within your comfort zone!!!
We didn't, and considering we never sent in anything else after the 13 items, we're kinda glad. Maybe one day we'll pick it back up where we left off, but in the meantime... no.
Yes: Eventually yes, if you're totally killin' it and seeing a consistent profit from this business (profit meaning what you've put in your pocket AFTER paying the amazon fees and re-paying the investment on your inventory) then you will definitely want to invest in business liability insurance and get yourself an LLC. An LLC (limited liability company) basically means that if a customer does decide to sue you, they can only go after the business assets, not your personal assets, such as your home, etc.
No: Why don't you first give this Amazon thing a shot and see if its even something you want to continue doing before you go balls-to-the-wall with the LLC and business liability insurance and all that? It's your call really.
If you feel you'd rather cover your butts in the off-chance some random person will want to sue you for all your assets for sending them a doll with one hair shorter than the rest and you have the extra cash to afford that, then by all means stay within your comfort zone!!!
We didn't, and considering we never sent in anything else after the 13 items, we're kinda glad. Maybe one day we'll pick it back up where we left off, but in the meantime... no.
Yes: Eventually yes, if you're totally killin' it and seeing a consistent profit from this business (profit meaning what you've put in your pocket AFTER paying the amazon fees and re-paying the investment on your inventory) then you will definitely want to invest in business liability insurance and get yourself an LLC. An LLC (limited liability company) basically means that if a customer does decide to sue you, they can only go after the business assets, not your personal assets, such as your home, etc.
Are you hip to the jive lingo?
Amazon and its sellers have abbreviations, and super fancy lingo that nobody really understands unless you've "been in the biz" for a while... Or at least longer than we have... and it's been months.
So the most amazing suggestion came through our amazing super secret Facebook support group to post a list of all the Amazon abbreviations and phrases you'll hear along your amazon journey. We called it...
So the most amazing suggestion came through our amazing super secret Facebook support group to post a list of all the Amazon abbreviations and phrases you'll hear along your amazon journey. We called it...
The Amazon to English Translation Dictionary
Is she right?! Totes... so she knows there is a litany of information out there, and several dozens of lists just like this (more than likely, though she has yet to come across one... or at least one as awesome as this...) So why read this one? Well... first of all, you're already here. And second because maybe, juuuuuust maaaaaaaybe... you kind of like the way we work things around here and like getting a laugh or two out of your reading time.
Ok, so let's get down to the nitty gritty...
Ok, so let's get down to the nitty gritty...
Amazonian Lingo... Translated
A
Arb - The super abbreviated slang for "Arbitrage"
Arbitrage - Buying goods for the purpose of re-selling them
ASIN - "Amazon Standard Identification Number". This is the barcode that will identify your goods versus other sellers selling the same item.
B
Buy Box - A highlighted area where a specific seller is featured, based on certain ever-changing Amazon algorithms
Bundle - Selling two or more items together as a package
Bar Code - OK, everyone knows what a barcode is, right??? Its on literally everything you buy?
Business Seller - We'll get back to you on this one. I think it's a different type of seller account but its been a while since we've dabbled with Amazon in honesty.
BSR - Best Seller Rank
Best Seller Rank - Again, will need to get back to you on this one.
BOLO - Be on the lookout (for what? no idea)
BOGO - Buy One Get One
c
CCC - Camel Camel Camel
Camel Camel Camel - A (currently as of 2019) free website in which you can enter the link of an amazon item and see the entire sales history and rank information
CB - Cash Back
CC - Credit Card
CRF - Customer support/returns/feedback
D
Deep - Purchasing a large quantity of one item for the purpose of reselling.
DS - DropShip
DropShip - A customer orders a product from you, which you purchase from a manufacturer who sends the item directly to your customer. (As opposed to you purchasing a product directly and sending it to a customer yourself, or sending the item to Amazon FBA to be sent to the Customer.
E
EAN - European Article number. Basically the Euro version of Bar Code.
EIN - Employee Identification number. An identification number given to people for tax purposes. Ex. if you currently are employed by a company you have an EIN assigned to you for tax purposes.
F
FBA - Fulfillment by Amazon
FMB - Fulfilled by Merchant
FNSKU - Fulfillment Network SKU. A Barcode to identify the item in the Amazon item Database.
Fulfillment By Amazon - Product purchased by you and sent to an Amazon Warehouse to be held until purchased by a Customer. Once it has been purchased, Amazon packs and ships the item(s) as well as provides any Customer Service, if needed.
Fulfillment By Merchant - Product purchased by you and held/stored by you until purchased by a Customer. Once it has been purchased, you pack and ship the item(s) as well as provide any Customer Service, if needed.
G
Gated - A specific category in which you are unable to sell items (i.e. clothing, shoes, etc.)
GC - gift card
I
ISBN - International Standard Book Number
Inventory Placement Service - A service Amazon offers where you're able to send your items to centralized Amazon and Amazon will distribute them where they choose.
IPL - Inventory/product listings
Individual - Again, we'll get back to you on this one. But I'm pretty sure its something about an account type.
IL - Inventory lab
K
KC - Kohl's cash
L
Labeling - Items you sell that you send to Amazon FBA will need to be labeled with your unique identifier on a label. This is how Amazon determines whether the Summer Fun Barbie that just sold was yours or Sam Winchester's.
M
MF- Merchant Fulfilled
MS - Merchant Sku
Multi-pack - This is when you offer multiple items together.
MAP - Manufacturers Advertised Price
MSRP - Manufacturers Suggested Retail Price
O
OA - Online Arbitration
Online Arbitrage - Purchasing items online to resell
OS - Online Sourcing
Online Sourcing - The process of finding items online to resell
Oversized - There are some items that will be considered oversized and will, in turn, incur higher storage fees. Be sure to look on the Amazon Seller Central to determine what the current oversized measurements are.
OAX - OA Xray. We have no idea what this is, but it's a thing.
P
PL - Private Label
Private Label - When you have a unique item which you have created, or had created and are selling online.
Poly - Shortened term for a poly bag
Polybag - Clear cellophane bag used to enclose your items.
PM - Profit Margin. The difference between the cost of an item (including shipping fees, etc.) and the actual sale price. The bigger the profit, the higher the "profit margin"
Prof - Profit
PLS - Prep - Label - Ship
Pro Seller - This is the account that costs $40/month (as of 2019) but will not charge you 99 cents per item sold.
R
RA - Retail Arbitration
Retail Arb - Retail Arbitration. This is when you physically visit retail stores to source products to resell
Restricted - These are categories you will not be able to sell items under.
ROI - Return on Investment. Sort of goes along the lines of Profit Margin.
S
Sourcing - Finding product
SR - Sales Rank. How well an item is selling within its category
SKU -
Scanning - Scanning item barcodes using an Amazon selling app to determine whether it's something you want to purchase to resell.
Seller App - An app for sellers to use on their phone to determine the profitability or selling rank for an item. You can also use it to calculate shipping and storage fees.
SKU - Stock Keeping Unit
U
UPC - Universal Product Code
Ungated - When you are no longer restricted from selling items in a specific category
V
VA - Virtual Assistant. Basically an assistant who does everything you don't have time to do from the comfort of their own home.
W
WL/White Label - Purchased from a manufacturer but applying your own brand.
Wide - Spreading your item base over several categories, or several items (i.e. not 100 of the exact same diapers, but instead maybe one package of diapers, a onesies package, baby blankets, etc.)
WS/Wholesale - When you buy product at the price a manufacturer charges a store to purchase the product (this is usually less than what the store will charge consumers)
WM - Walmart
Arb - The super abbreviated slang for "Arbitrage"
Arbitrage - Buying goods for the purpose of re-selling them
ASIN - "Amazon Standard Identification Number". This is the barcode that will identify your goods versus other sellers selling the same item.
B
Buy Box - A highlighted area where a specific seller is featured, based on certain ever-changing Amazon algorithms
Bundle - Selling two or more items together as a package
Bar Code - OK, everyone knows what a barcode is, right??? Its on literally everything you buy?
Business Seller - We'll get back to you on this one. I think it's a different type of seller account but its been a while since we've dabbled with Amazon in honesty.
BSR - Best Seller Rank
Best Seller Rank - Again, will need to get back to you on this one.
BOLO - Be on the lookout (for what? no idea)
BOGO - Buy One Get One
c
CCC - Camel Camel Camel
Camel Camel Camel - A (currently as of 2019) free website in which you can enter the link of an amazon item and see the entire sales history and rank information
CB - Cash Back
CC - Credit Card
CRF - Customer support/returns/feedback
D
Deep - Purchasing a large quantity of one item for the purpose of reselling.
DS - DropShip
DropShip - A customer orders a product from you, which you purchase from a manufacturer who sends the item directly to your customer. (As opposed to you purchasing a product directly and sending it to a customer yourself, or sending the item to Amazon FBA to be sent to the Customer.
E
EAN - European Article number. Basically the Euro version of Bar Code.
EIN - Employee Identification number. An identification number given to people for tax purposes. Ex. if you currently are employed by a company you have an EIN assigned to you for tax purposes.
F
FBA - Fulfillment by Amazon
FMB - Fulfilled by Merchant
FNSKU - Fulfillment Network SKU. A Barcode to identify the item in the Amazon item Database.
Fulfillment By Amazon - Product purchased by you and sent to an Amazon Warehouse to be held until purchased by a Customer. Once it has been purchased, Amazon packs and ships the item(s) as well as provides any Customer Service, if needed.
Fulfillment By Merchant - Product purchased by you and held/stored by you until purchased by a Customer. Once it has been purchased, you pack and ship the item(s) as well as provide any Customer Service, if needed.
G
Gated - A specific category in which you are unable to sell items (i.e. clothing, shoes, etc.)
GC - gift card
I
ISBN - International Standard Book Number
Inventory Placement Service - A service Amazon offers where you're able to send your items to centralized Amazon and Amazon will distribute them where they choose.
IPL - Inventory/product listings
Individual - Again, we'll get back to you on this one. But I'm pretty sure its something about an account type.
IL - Inventory lab
K
KC - Kohl's cash
L
Labeling - Items you sell that you send to Amazon FBA will need to be labeled with your unique identifier on a label. This is how Amazon determines whether the Summer Fun Barbie that just sold was yours or Sam Winchester's.
M
MF- Merchant Fulfilled
MS - Merchant Sku
Multi-pack - This is when you offer multiple items together.
MAP - Manufacturers Advertised Price
MSRP - Manufacturers Suggested Retail Price
O
OA - Online Arbitration
Online Arbitrage - Purchasing items online to resell
OS - Online Sourcing
Online Sourcing - The process of finding items online to resell
Oversized - There are some items that will be considered oversized and will, in turn, incur higher storage fees. Be sure to look on the Amazon Seller Central to determine what the current oversized measurements are.
OAX - OA Xray. We have no idea what this is, but it's a thing.
P
PL - Private Label
Private Label - When you have a unique item which you have created, or had created and are selling online.
Poly - Shortened term for a poly bag
Polybag - Clear cellophane bag used to enclose your items.
PM - Profit Margin. The difference between the cost of an item (including shipping fees, etc.) and the actual sale price. The bigger the profit, the higher the "profit margin"
Prof - Profit
PLS - Prep - Label - Ship
Pro Seller - This is the account that costs $40/month (as of 2019) but will not charge you 99 cents per item sold.
R
RA - Retail Arbitration
Retail Arb - Retail Arbitration. This is when you physically visit retail stores to source products to resell
Restricted - These are categories you will not be able to sell items under.
ROI - Return on Investment. Sort of goes along the lines of Profit Margin.
S
Sourcing - Finding product
SR - Sales Rank. How well an item is selling within its category
SKU -
Scanning - Scanning item barcodes using an Amazon selling app to determine whether it's something you want to purchase to resell.
Seller App - An app for sellers to use on their phone to determine the profitability or selling rank for an item. You can also use it to calculate shipping and storage fees.
SKU - Stock Keeping Unit
U
UPC - Universal Product Code
Ungated - When you are no longer restricted from selling items in a specific category
V
VA - Virtual Assistant. Basically an assistant who does everything you don't have time to do from the comfort of their own home.
W
WL/White Label - Purchased from a manufacturer but applying your own brand.
Wide - Spreading your item base over several categories, or several items (i.e. not 100 of the exact same diapers, but instead maybe one package of diapers, a onesies package, baby blankets, etc.)
WS/Wholesale - When you buy product at the price a manufacturer charges a store to purchase the product (this is usually less than what the store will charge consumers)
WM - Walmart