How to Save Money Using Amazon FBA

There are a number of ways to ship products to the Amazon FBA warehouse. Check out this blog to learn about the most cost-effective shipment options.

Finding the most affordable and effective shipping option can be difficult. Fulfilment by Amazon (FBA) is a great option for Amazon sellers. With FBA, Amazon handles everything: shipping, product warehousing, returns, refunds, and packing. The seller only has to ship the merchandise to Amazon for further processing.

However, all the great perks of Amazon come at a price – Amazon seller fees. The cost to sell on Amazon can make a dent in your account, especially as a new seller. That is why online merchants need to learn how to cut costs to obtain maximum ROI and profits when using FBA.

Factors determining the overall Amazon seller fees

Calculating the seller fees depends upon the seller’s location, but includes other factors too such as order handling, picking and packing orders, product weight, outbound shipping, 30-day storage, inbound shipping, and prep service.

Currently, for those shipping overseas, Amazon FBA is a good option.

Ocean Freight

Shipping by sea is a slow method, but it’s incredibly cost-effective. The cost is comparatively lower than air shipping (although costs in this pandemic environment are driving up the costs of ocean freight lately). There are fewer middlemen involved, which reduces confusion on your end.

The most exciting part is that this process requires no physical effort from your side. Instead, the products are transferred directly from the factory to the Amazon FBA warehouse. 

Different Ways to Save Money

Some more tips to save money while selling online:

  • Choosing products is a crucial step to tackle the competitive market. Choose profitable items that will sell and avoid stagnant inventory costs. 
  • Try to bundle items whenever possible. In a vast sea of almost identical products with a minute price difference, you want to stand out from the rest. So create a bundled listing to offer more value for the money.
  • Sourcing packing materials for free is another helpful tip. It is not mandatory to always use brand-new packaging supplies and boxes. You can even recycle old newspapers and shredded magazines to pad items. 
  • You can become the sole distributor of certain items by obtaining exclusive rights. This way, you do not compete with other sellers and have the freedom to charge the amount you desire. 

Conclusion

The final decision lies with how you want to run your online business. You want to choose the most cost-efficient and profitable option to ship your products to the Amazon FBA warehouse. Hopefully, these tips optimize your supply chain process and help reduce expenses. Do you want to learn from real-life Amazon sellers that are happy to share their success stories with you? We have got you covered! Visit our website here.

Carlos Alvarez

"A bit about " Carlos Alvarez " in his own words: "Alvarez sums up his mission to help online sellers with a quote he heard early on in his career. “New sellers constantly compare their Chapter 1 to another seller’s Chapter 20. They see what other veteran sellers are doing and they judge their success and failures by this benchmark.” His goal is to show sellers a realistic path to success, and how they can enjoy every chapter of their own, unique journey."

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