In the last decade, online shopping has grown at an unprecedented rate and business world online It was imposed as one of the arm models due to its capacity for innovation, low costs and facilities. Amazon is one of the industry-related companies with the largest presence in the industry due to its versatility when doing business. In this article we will guide you step by step so that you get the highest profitability with one of the most well-known business models.
Do you need an Amazon subscription to earn money?
You see, there are mainly 4 ways to make money with Amazon:
- Investment in company shares
- Selling your own products
- Affiliate marketing
- Amazon FBA
The latest model requires a paid member. Instead, Amazon offers its logistics capacity, taking care of logistics and customer service, thus facilitating the entire sales process. Once the seller sends their product to an Amazon warehouse, the company takes care of its receipt, storage and packaging and sends it to customers if they make a purchase. In addition, the company is responsible for managing refunds and returns.
How does the Amazon FBA program work for higher profits?
What we can point out about the Amazon FBA program is that it greatly simplifies the sales process and can be considered a passive strategy to generate revenue, because you delegate all responsibility and control to the company and it does all the work for you. also increase the number of sales and customers, taking advantage of the platform’s visibility.
Amazon FBA Individual
The individual sales plan is essentially an after-sales payment plan which provides the user with a small list of basic tools for publishing and managing orders, in this way Amazon determines the shipping rates for orders and delivery services that sellers can offer their customers, the advantage at a glance is that a commission it is paid only once the sale is made. This may be the most viable option for you.If you do not have a large sales volume and your catalog is limited, in addition, sellers have the advantage of a fixed fee for each product requested, plus a small fee for the applicable reference. Individual FBA features to highlight:
- It’s free
- You pay an additional $ 1 for each product sold
- You are not allowed to do promotions
- Limited reports
Amazon FBA Pro
To enter the professional sales program, a non-refundable monthly subscription fee is required, but you will not have to pay a product sales fee every time you make a sale. You need to consider the payment terms whether or not you publish something, as well as sales.The professional sales plan gives you access to functions for mass management of your inventory and orders using files, generating at the same time a comprehensive sales report. You should consider this option if you have a medium or large business.To summarize the peculiarities of FBA Pro we can highlight:
- Access to all promotions
- Access to professional reports
- Access to advertising campaigns
- A monthly cost of $ 39, regardless of the number of products you sell
Advantages and disadvantages of Amazon BFA
In this section we will present the pros and cons that must be considered when entering the Amazon FBA program.
- Low transport costs
- Your products will be accepted on Amazon Prime
- Trust and greater credibility with your customers.
- The company deals with customer service and logistics
- Return management
- Professional reports
- Additional cost independent of the selected plan
- Lack of control over physical inventory
- High level of competence
- Impossibility to obtain contact information for subsequent re-marketing