If you are new to Amazon FBA arbitrage, then there’s one thing you should know: It is as simple as it is. Sometimes, people start over-complicating things and blowing them out of proportion, but the truth is that selling on Amazon is a simple process. In this blog, we are going to discuss the basics of Amazon FBA Arbitrage.

What is Amazon FBA?

FBA, Fulfillment by Amazon when expanded, is an Amazon program. It allows you to outsource fulfillment of your orders to Amazon. So, when a customer places an order, you are no longer responsible for shipping it. You can enroll in FBA and send your products to Amazon’s fulfillment center, and Amazon will take care of everything else. They will handle everything from inventory to delivery, as well as customer service and returns. This program is a part of a fully automated service by Amazon known as the Supply Chain.

How Do You Get Started on Amazon FBA Arbitrage?

Before you start finding products to resell on Amazon, you need to have your own Amazon seller account. Aside from the account, you also need to download a product scanning app and pick your method of fulfillment. Here’s everything you need to do in detail:

1. Seller Account: This is the first big step towards your Amazon FBA arbitrage journey. If you don’t have an Amazon seller account already, then it’s time to create one. You need to complete this step before doing anything else, as it takes a week or so for Amazon to approve your account.
2. Fulfillment Method: You also want to decide whether you will fulfill your products yourself or through Amazon programs like Easy Ship or FBA. In some cases, you can choose multiple options like both FBA and FBM.
3. Scanner App: You will need a bunch of tools and software that will help you find products to resell, but the most important one is the Amazon Seller app. This app is free to use once your Amazon Seller Account gets approved. It lets you use it to scan products when you are in retail stores. After scanning, it will show you various listings with sales ranks or whether the product is allowed to sell. It also lets you enter your buyer’s cost to calculate profits. There’s also an option to list products for sale through the app.

How Can You Become An Amazon FBA Seller?

You can sign yourself up for the FBA program after creating an Amazon Seller account. You get two options for selling plans: individual and professional; you may pick either of the plans that match your business goals. After you are done picking your plan, you can successfully enroll your account in the FBA program. Once in, you can start creating new listings under this program.

Here are some steps that you can follow to register your business:

1. Glide over the Gear Icon after logging into Seller Central. Then click on Account Info.
2. Now Click manage on the Seller Information page.
3. Finally, select the option “Register for FBA” to join.

What’s in it for Amazon?

Amazon charges different types of fees when you start selling on Amazon. These may include:

• Referral Fees: Amazon charges a referral fee. It is based on the percentage of sales you make while selling the product. The cost is different for each category.
• Closing Fee: Other than the Referral fee, Amazon also charges you with a closing fee. This is based on the product price that you set.
• Weight Handling: Amazon charges a weight handling fee for Easy Ship and FBA programs for every product. This cost varies depending on the size and weight of your products. Beginner’s tip: Start your selling journey with products that weigh under 5 lbs.
• Other Fees: If you are a member of the Amazon FBA Program, you will be charged a fee for picking up, packing, and storing your orders.

Wrapping Up

You can use the Amazon Seller app to keep an eye on your daily sales, manage your orders, and adjust the pricing whenever you want. In case your products end up selling really well, you can focus on restocking the inventory so you can continue to make sales. However, if your products are not doing so well, you can make pricing adjustments to drive more sales. Just don’t mess up your SKU, and you’ll be good. If you have any questions regarding the Amazon FBA arbitrage, you can contact us through email at [email protected].