Winning Strategies for eCommerce & Selling on Amazon
Amazon Store Setup – Frequently Asked Questions
Q: What is Fulfillment by Amazon (FBA)?
A: FBA is a service provided by Amazon to give its sellers an easy way to fulfill orders. You simply make a shipment to your designated Amazon Fulfillment center, and they will ship your individual products your individual customers.
Q: Is FBA free?
A: Yes and no, while it is free to sign up and use FBA, they will charge you fees that vary depending on the type of product you have. The fee amount is mostly affected by product weight and dimensions.
Q: What percentage of my sales does Amazon take?
A: Amazon takes a percentage cut between 6% & 25% dependent on the category your product is in. For most products Amazon take a 15% cut (This does not include FBA fees). Click here to view the list of percentage cut by category.
Q: Do I have to use FBA?
A: No, if you have the proper facilities and infrastructure in place, you may save money by shipping your products to your customers yourself. But you will have to monitor sales daily to make sure you ship your products in a timely manner. Once you ship the product to your customers you must notify Amazon immediately.
Q: When will Amazon pay me?
A: After every sale Amazon will add that money to your seller account balance, and every 14 days, Amazon will disburse that money to your chosen bank account.
Q: If I fulfill products myself, how much does the shipping cost?
A: When you fulfill orders yourself, Amazon platform shipping rates apply to media products (books, music, video, DVD, software, and video games) sold by Professional Sellers, and to all products sold by Individual Sellers. They charge these shipping rates based on the product category and shipping service selected by the buyer, and then pass the amount on to you.
Q: How do my products become Amazon Prime eligible?
A: You must be a member of the FBA program to be Amazon Prime eligible. If you self-fulfill your products, they will not be a part of the Amazon Prime program.