7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

FBA Basics

by Owen Fitzgerald
6 replies
  • ECOMMERCE
    • |
Hi all,

Firstly, let me apologise in advance for asking such basic questions!

I'm looking to get into FBA, but want to get a few things cleared up before diving in:


Registering for FBA

Is this a fairly simple process?

As this is a business I'm completely unfamiliar with, am I wasting my energy thinking too much about my seller name? I'm trying to come up with something creative that has a .com URL available, but part of me thinks there's a fair chance of failure so I may change my seller ID/start a new account if things don't go too well.

I've heard there are 'gated' categories. How do I find out which categories I can and can't sell in?


Alibaba

Finding trusted sellers! Would you agree that 'assessed account' sellers are most likely to be the most reliable, trustworthy suppliers? Is it fair to assume that sending a wire transfer wouldn't be a crazy thing to do if they have the 'assessed account' status?

Negotiating: How likely am I to get the price quoted? I've heard stories of potential buyers being quoted far higher prices when contacting the seller for a quote. Is this often the case?

Is there anything I should be looking for when trying to find a potential source? I realise a low number of sales and a low response to messages rate bode well, but is there anything less obvious I should be looking out for?


Logistics & Packaging

Having a glance at Alibaba, they give shipping time. Is that to say the supplier handles the shipping? Is it possible to choose a preferred courier? Any couriers I should or shouldn't go for?

When I finally reach the stage of making an order (after testing the product, taking photos etc), do I ship directly to Amazon? I'm unsure of the product/s I'll be going for, but there's a fair chance there could be a few thousand of them, eg toothpicks. I imagine they'd come in bags of 50 or whatever I agree with the supplier, does Amazon then box them up as and when needed?

If I was to brand a product, are there any other things Amazon would ask of me?

Barcodes - Is it correct that all products must be barcoded? If so, what's generally the cost of this and does every supplier off this service?

There are a million other things I'd like to know, but answers to the above would make me feel a bit more prepared for entering the FBA space. If there's something blindingly obvious I'm not taking into account, please do let me know.


Any advice would be greatly appreciated,

Owen
#basics #fba
  • Profile picture of the author DWaters
    All good questions. As for setting up your business with Amazon there is a wealth of useful information available from Amazon's tutorials. They pretty much will walk you through it. IMO your suggestion should be a consumer friendly company name. If you want to also get the domain that is OK as well but not at all vital.


    I have not made use of Alibaba at all but you may want to search this forum for post by ImportExport - Walter Hay. He has significant experience importing products from China and is willing to share lots of good info in his posts. I my opinion I would suggest getting your business up and running, get familiar with selling on Amazon and then consider private label products. Start small and build up from there.


    As for many other situations related to selling on Amazon you may want to consider Jim Cockrum's Proven Amazon Course. That is how I learned to set up a profitable business. Tons of good info and more added all the time.
    Signature
    How I really Make Money With Amazon

    Want to get rich with top rated FREE Super Affiliate Training?
    {{ DiscussionBoard.errors[11108486].message }}
  • Profile picture of the author Importexport
    I have numbered the questions you ask to make sure I don't miss anything.


    Originally Posted by Owen Fitzgerald View Post

    Hi all,

    Firstly, let me apologise in advance for asking such basic questions!

    I'm looking to get into FBA, but want to get a few things cleared up before diving in:

    Alibaba

    1. Finding trusted sellers! Would you agree that 'assessed account' sellers are most likely to be the most reliable, trustworthy suppliers? Is it fair to assume that sending a wire transfer wouldn't be a crazy thing to do if they have the 'assessed account' status?

    2. Negotiating: How likely am I to get the price quoted? I've heard stories of potential buyers being quoted far higher prices when contacting the seller for a quote. Is this often the case?

    3. Is there anything I should be looking for when trying to find a potential source? I realise a low number of sales and a low response to messages rate bode well, but is there anything less obvious I should be looking out for?


    Logistics & Packaging

    4. Having a glance at Alibaba, they give shipping time. Is that to say the supplier handles the shipping? Is it possible to choose a preferred courier? Any couriers I should or shouldn't go for?

    5. When I finally reach the stage of making an order (after testing the product, taking photos etc), do I ship directly to Amazon? I'm unsure of the product/s I'll be going for, but there's a fair chance there could be a few thousand of them, eg toothpicks. I imagine they'd come in bags of 50 or whatever I agree with the supplier, does Amazon then box them up as and when needed?

    6. If I was to brand a product, are there any other things Amazon would ask of me?

    7. Barcodes - Is it correct that all products must be barcoded? If so, what's generally the cost of this and does every supplier off this service?

    There are a million other things I'd like to know, but answers to the above would make me feel a bit more prepared for entering the FBA space. If there's something blindingly obvious I'm not taking into account, please do let me know.

    Any advice would be greatly appreciated,

    Owen
    1. Assessed Suppliers are the only ones to consider, BUT it is essential that you read the whole report. You will often find that suppliers who give the impression that they are manufacturers are in fact traders. I advise my students to do some extra research before deciding to deal with any supplier in China.

    2. Those prices quoted are often just clickbait. If you look at my AMA Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here. you will see what to say and more importantly what not to say in your first contact. Negotiating should not be confused with haggling. Many gurus in training will tell you to haggle.

    3. A low number of sales can be a good thing. You might find that you have less competition for the product in your home market. A low response rate might be a result of receiving too many stupid messages from newbies.

    4. If small quantities are involved, I suggest using the supplier's preferred courier. Whatever you do, don't accept freight on delivery unless you have negotiated with your courier and got their quote in writing.

    5. There are risks in shipping direct to Amazon. I would ship via another fulfillment service.

    6. @DWaters could answer that better than I can. I would just add that if you intend private labeling you should consider ignoring those who say "Just slap on a label" and instead produce a label that will sell for you.

    7. Yes you must have barcodes, but again, I would ask @DWaters for advice on this. He is quite an expert on FBA.

    Walter Hay
    Signature
    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
    {{ DiscussionBoard.errors[11125091].message }}
  • Profile picture of the author cryptogld
    It is possible and I recommend it. All the info you need to start an Amazon business is on YouTube, Reddit, and podcasts. In my humble opinion, you'd be a fool to pay thousands for a course or bootcamp, when you could spend that on product.

    This isn't rocket science, you can start amazon fba business with less than $500 and in about a month without Harvard MBA, million dollars on your bank account, reinventing the wheel, all you need is common sense, some work hours and as I said $500 of initial investment.
    {{ DiscussionBoard.errors[11125483].message }}
    • Profile picture of the author Oziboomer
      Originally Posted by cryptogld View Post

      This isn't rocket science, you can start amazon fba business with less than $500 and in about a month without Harvard MBA, million dollars on your bank account, reinventing the wheel, all you need is common sense, some work hours and as I said $500 of initial investment.
      Wow. So start with $500 and in one month have One Million dollars.

      Have you done that?

      Does that mean if you re-invest the million you made in the first month by the end of your second month you've got $2B?

      You could solve the world's poverty in a few months with that kind of knowledge.

      Please share with us how long you've been getting those sort of returns?

      I'm sure everyone here who is struggling to get by on a few hundred thousand would be all ears.

      Best regards,

      Ozi
      Signature
      {{ DiscussionBoard.errors[11125587].message }}
      • Profile picture of the author Owen Fitzgerald
        I think you've misread that, Ozi.

        Thanks to everyone who answered, much appreciated. I'm now at the stage of placing first orders for 2 products. I'm reasonably worried as they're fairly seasonal products, but I'll see how they go.

        The labeling was a real pain, but I think I've got that sussed now. The products will have an EAN, but won't feature on the product itself, only the FNSKU. I've figured this is ok as the few products I've received from Amazon have been labeled this way.

        The logistics side of things is my biggest unknown currently. I've recently received a quote for shipping 'DDP'. I understand that to include customs charges, too. Would that be correct? I'm also a little unsure about whether that's 'door to door', I also don't know if it's worth the risk sending directly to Amazon as if the supplier doesn't label everything correctly it'll cause issues.
        {{ DiscussionBoard.errors[11126547].message }}
        • Profile picture of the author Importexport
          Originally Posted by Owen Fitzgerald View Post

          I think you've misread that, Ozi.

          Thanks to everyone who answered, much appreciated. I'm now at the stage of placing first orders for 2 products. I'm reasonably worried as they're fairly seasonal products, but I'll see how they go.

          The labeling was a real pain, but I think I've got that sussed now. The products will have an EAN, but won't feature on the product itself, only the FNSKU. I've figured this is ok as the few products I've received from Amazon have been labeled this way.

          The logistics side of things is my biggest unknown currently. I've recently received a quote for shipping 'DDP'. I understand that to include customs charges, too. Would that be correct? I'm also a little unsure about whether that's 'door to door', I also don't know if it's worth the risk sending directly to Amazon as if the supplier doesn't label everything correctly it'll cause issues.
          Before you place your orders you must be sure of all charges. Otherwise you could be in for a nasty surprise.

          Chinese suppliers have a tendency to misunderstand or misquote shipping terms, properly known as Incoterms. DDP means Delivered Duty Paid and that requires the supplier to pay the duty as well as all other charges to the destination stated on the order.

          It is rare for Chinese suppliers to be willing to pay the duty. They possibly mean that they will pay a customs broker, or more likely the air courier to clear the items through Customs, but you will get the bill for the duty unless their quote is genuinely DDP.

          Are they shipping via air courier? If so, the courier service will normally handle the clearance, including paying the duty on your behalf, (NOT on behalf of the supplier) and they will then collect it from you before they will deliver to you.

          Air courier services are almost always door to door, but you need to confirm that your supplier is booking a door to door service.

          Walter Hay
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
          {{ DiscussionBoard.errors[11127002].message }}

Trending Topics