Amazon offers three main selling programs:
FULFILLED BY AMAZON
Essentially, Fulfilled by Amazon or FBA is where you ship your inventory to Amazon and they fulfil each order as it comes in.
Merchant-fulfilled is where you fulfill each customer order yourself
Vendor Central or Vendor Express is where Amazon makes a wholesale purchase order for your products.
FBA and the Amazon Prime program
Being FBA makes your item eligible for Amazon’s “Prime” program, where users pay an annual fee to get free 2-days shipping on Prime eligible items. Many consumers will ONLY buy Prime eligible items, and they are usually willing to pay up to 20% more for an item that’s prime-eligible than one which is not.
FEES & PAYMENTS
Amazon’s usual payment cycle is 2 weeks - they will transfer the proceeds from customer purchases to your bank account in 2-week increments. Read more about FBA fees and costs of having Amazon ship products directly to customers for you.
FBA and International Sellers
Fulfilled by Amazon makes selling your product to customers in the United States a much simpler process than setting up your own warehouse or distribution partner in the US. International FBA Sellers can still sell their products using Amazon FBA, without having to set foot on US soil! We have a whole blog post series on the topic and have many international brands as clients of Bobsled Marketing.
Applying for an FBA account
The application process for an Amazon Seller Account is simple. You can complete an online questionnaire about your business, tax information and what you plan to sell. Note that some product categories on Amazon are considered “gated” categories where there is a quite lengthy approval and vetting process. These categories include apparel, health and beauty, food products, and jewelry. Sign up to sell on Amazon at https://services.amazon.com/selling-on-amazon
Want us to handle it for you?
There are lots of decisions to make when launching your brand on Amazon. We can help you clear through the clutter and know that you’re doing things the right way.