Saturday, August 31, 2013

Fulfilmment by Amazon As a Cash Stream

At the beginning of 2013 I signed with as a seller and opted to go with the Fulfilment by Amazon (FBA) option.

What is FBA? Basically FBA allows you to send a shipment of stock to an Amazon storage facility where it is held for sale along with other products sold by Amazon.

The easiest items to begin selling are books and DVD's. You can start clearing your book shelves and maybe sell books from thrift stores or library book sales. When buying in books look for books in the best possible condition, marks, highlighting and tears mar the condition and hence the price of the book.

Popular novels are also of low value to you, customers can get those for little more than you may pay and with some of the costs you may only make a dollar or two on them.

There are some costs to set up the account, you may choose to sell less than 40 items per month where charge you a 99 cent fee on top of charges which you must take into account in pricing, this along with 15% selling fee upon the sale and a small storage charge which adds up to pennies per month.

The second service, a professional service gives you more options but costs you just under $40.00 per month, plus some other selling fees at a lower rate than with the individual seller plan above.

You send your stock to an fulfillment center in boxes. I opt to use the UPS shipment service provided by Amazon. Recently a box weighing thirty pounds was shipped across country for just $14. I just passed it on to a UPS collection center in town and the package was delivered in six days.

Once the parcel is received by Amazon, it takes between twenty-four and forty-eight hours for the items to list on the website.

Within minutes of an item appearing it can be sold and being prepared for shipment to the Amazon customer.

I sell several items per week, at the moment my best sellers have been college textbooks. Some purchased for as little as $1.00 have sold for over $30.00. Bear in mind Amazon charges take about $7.00 on average for those high seling price items. You can see a good profit.

Payment is passed to your bank account about fourteen days after the sale is complete for individual sellers and ten days for professional sellers accounts.

Why use FBA? I had some books offered as sale by merchant for several months on the website, they did not sell so as I knew I would be away from home for several weeks I moved them to an FBA shipment. I sold several of the very same books within one week by allowing Amazon to ship them.

FBA products are eligible for Amazon prime and supersaver shipping, this means that customers have less concern about when they will receive their items and are more willing to buy from an FBA seller than a fulfilled by merchant seller.

How do you compete with the 1 cent book seller? You don't  the book I sold for over $30, mentioned earlier was a prime example there were several copies of the very same book for sale at 1 cent. The customer still paid the money to me because all the 1 cent sellers were fulfilled by merchant and mine was the only copy available with free two day shipping and even eligible for supersaver shipping if the customer was not an Amazon Prime member.

So maybe this program is  worth considering if you are looking to cash in a side income or paying hobby.

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