01 - What Is Amazon FBA | Amazon FBA full course | Shahid Anwar

Summary

In this lesson, the concept of Fulfillment by Amazon (FBA) is explained in simple terms. The video covers the responsibilities of sellers, including product research, sourcing, listing, and running PPC campaigns. It explains how sellers can work with Amazon's fulfillment model, regardless of their location, and how the process works, from sourcing products through platforms like Alibaba to shipping them to Amazon fulfillment centers worldwide. The importance of having basic documents like a passport, bank statement, and utility bills is highlighted, along with tips on effective inventory forecasting to avoid overstocking or shortages.

Takeaways

• 😀 FBA stands for Fulfillment by Amazon, which involves product sourcing, shipment, returns, and payment collection.
• 😀 You can use FBA even if you are located in countries like Pakistan, Afghanistan, China, or even from anywhere globally, as long as you have the necessary documents.
• 😀 For FBA, basic documents required include a passport and a bank statement. If these aren't in your name, they can be in your family's name.
• 😀 Seller responsibilities in the FBA model include product research, sourcing, listing, and managing PPC campaigns.
• 😀 These responsibilities don't need to be done daily, but rather on a weekly or monthly basis depending on sales volume.
• 😀 Product sourcing can be done via platforms like Alibaba, though alternatives are available.
• 😀 After purchasing products from a supplier and customizing them with your brand/logo, the goods will be shipped to Amazon's fulfillment centers.
• 😀 Once the products are in the fulfillment center, they become 'active' on the platform and are visible to millions of customers.
• 😀 The FBA model is designed for ease, allowing sellers to focus on marketing while Amazon handles storage, shipping, and returns.
• 😀 Forecasting is important for FBA sellers to ensure they neither overstock nor run out of inventory. This is typically done on a 4-week cycle.
• 😀 Amazon’s global reach includes fulfillment centers in regions like Central America, Europe, Africa, and the Gulf, making it easier for sellers to access international markets.

Q & A

What does FBA stand for and how does it work?

FBA stands for Fulfillment by Amazon. It is a business model where sellers send their products to Amazon’s fulfillment centers, and Amazon handles storage, packing, shipping, and customer service on behalf of the seller.

What are the main responsibilities of a seller using the FBA model?

A seller's main responsibilities in the FBA model include product research, sourcing the products, creating product listings, and running PPC campaigns. These tasks are not daily but depend on sales volume.

Can someone from a different country sell on Amazon FBA?

Yes, sellers from different countries can sell on Amazon FBA. As long as they meet the documentation requirements, such as a passport and bank statement, they can sell on Amazon marketplaces in the U.S., Europe, and other regions.

Is it necessary to have a company or business registration to sell on Amazon FBA?

In most cases, you do not need a company to sell on Amazon FBA. However, certain countries, such as the U.S., may require you to have a business registered if you want to build a brand.

What documents do sellers need to provide to get started with FBA?

To start selling on FBA, sellers typically need to provide a passport, a bank statement, and possibly a utility bill or other identification that proves their address and identity.

How does the product sourcing process work in the FBA model?

Product sourcing involves finding suppliers (e.g., Alibaba), purchasing products, branding them with your logo, and then shipping them to Amazon’s fulfillment centers. Once products are at Amazon, they become visible to customers.

How does inventory management work with FBA, and why is forecasting important?

Inventory management in FBA requires forecasting sales to prevent overstocking or running out of inventory. Sellers forecast their inventory by analyzing their daily sales and projecting it over four weeks to manage stock levels effectively.

What does the term 'active' mean in the FBA process?

When a product is 'active' in the FBA system, it means the product is listed on Amazon and available for customers to purchase. Once products are shipped to Amazon’s fulfillment centers and processed, they become visible to customers.

Can a seller use FBA if they are not located in the country where the fulfillment center is?

Yes, a seller can use FBA even if they are not in the same country as the fulfillment center. Amazon allows global sellers to send their products to fulfillment centers in various regions, such as the U.S., Europe, or Asia.

What is the role of Amazon in the FBA model?

Amazon’s role in the FBA model is to manage product storage, packing, shipping, and customer service. Amazon ensures that products are delivered to customers and handles returns, making it easier for sellers to manage their businesses.