Trade-In Tech
by on September 13, 2021
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Making its debut in 2006, Fulfillment by Amazon made its debut as a way to help small companies and third-party resellers. This program allows sellers to store their items in Amazon’s warehouse space. This company also takes care of shipping and returns.

 

Fulfillment by Amazon does sound enticing. But is it right for your business? In this post, we’ll be taking a closer look at Fulfillment by Amazon. To do this, we’re going to cover:

 

  • What makes joining Fulfillment by Amazon so beneficial

  • The drawbacks of Fulfillment by Amazon

  • How to join Amazon’s fulfillment program

  • Managing your orders through FBA

  • Additional Amazon Fulfillment services to take advantage of

  • How Trade-In Tech can help you make even more sales through Amazon

 

What makes joining Fulfillment by Amazon so beneficial?

 

 

There is an incredible range of great reasons to join Fulfillment by Amazon. To give you a better idea of these advantages, we’ll go over them one by one. Here’s a closer look at why you should consider becoming a member of Fulfillment by Amazon.

 

Partnering with a well-known business

 

One of the main benefits of Fulfillment by Amazon is that your electronics company is technically partnering up with Amazon, one of the most valuable businesses in the world. When you’re a member of Fulfillment by Amazon, it’s like getting to borrow some of this company’s resources for the benefit of your own business.

 

Through this type of business partnership with such a well-known company, you don’t need to spend time and energy researching a company you’ve never heard of. This program being around since 2006 should give you the peace of mind you’re looking for.

 

Not worrying about storage space

 

Although most electronics tend to be on the smaller side of products, this doesn’t mean they’re always easy to store. If you’re like most people, you might not have a lot of space to dedicate to storing electronics. Most people have items of their own to store and also don’t want their houses to look like electronics warehouses.

 

If you can’t or choose not to store electronics in your home, your only other option might be to either rent warehouse storage space or any available space in a mini-storage facility. While either of these options can be great solutions, they can also be costly. 

 

In some cases, having your items stored at Amazon’s facilities could be far less expensive than mini-storage facilities or other company’s warehouses. Plus, you have the peace of mind that comes with knowing your electronics are safely stored within one of Amazon’s storage facilities.

 

Amazon takes care of shipping for you

 

Shipping is a huge part of any reseller’s life. You have to pack your items to get them ready to ship. You’ll also have to get them to where a shipping service will pick them up. Needless to say, the shipping process can become a large part of any reseller’s life.

 

Fortunately, you can reduce the time you spend on shipping-related tasks by joining Fulfillment by Amazon. When you’re a member of this program, Amazon takes care of shipping your stored items. Since these items will already be within one of Amazon’s storage warehouses, it’s easy for this company to access your items and ship them out.

 

Not being a part of the shipping process allows you to focus on other business-related matters. Plus, you could save money by not burning fuel driving products to the nearest local post office or shipping company.

 

Having help with returned items

 

Hopefully, the transaction process ends when your happy customer receives the items they bought from you. Unfortunately, as almost any electronics reseller can tell you, that’s not always the case. Sometimes, a customer will need to return something they ordered.

 

Understandably, no business owner wants to deal with lots of returns. However, these situations will happen from time to time. Customer returns can happen for a wide range of reasons. Sometimes, a customer returns an item because they legitimately didn’t mean to order it.

 

Regardless of why customers are returning items, it’s something to prepare yourself for. When you do have a customer requesting a return, and it’s within your company’s guidelines, you want to be as accommodating as possible.

 

You’ll be glad to know that Fulfillment by Amazon also takes care of customer returns. This is a great feature because it helps you save time. Since Fulfillment by Amazon has a lot of experience helping sellers process returns, you can expect a fairly easy process. And, when it’s easy for customers to return items, they’ll likely remember this stress-free shopping experience.

 

Getting Orders to Customers Fast

 

In the world of reselling electronic devices, shipping is an incredibly important concern. Considering that, you’ll want a way to get your items to customers as fast as possible. Fortunately, Fulfillment by Amazon allows you to achieve this important goal. When you join this program, you’ll be able to receive Prime designation for all of your orders.

 

With Prime designation, you can ship out your company’s products within 48 hours. To be more specific, Amazon ensures that these items get to your customers as fast as possible. The Prime designation is also important because, in most cases, it means that your company’s items will probably show up in more product results than ones without Prime designation.

 

FBA Integrates With Many Programs

 

If you’re thinking about trying out a new business-related service, it’s understandable to ensure that this new program will integrate with those that your company already uses. Fortunately, you’ll be glad to know that Fulfillment by Amazon integrates with many popular programs.

 

Some programs your company can use with FBA are WooCommerce, Shopify, Bytestand, and other popular e-commerce platforms. Orders sent out through FBA can also integrate data with AfterShip, which is great for customers waiting to receive their products. You can also integrate Fulfillment by Amazon with Zentail, Skubana, Listing Mirror, and ChannelAdvisor.

 

What are the drawbacks of Fulfillment by Amazon?

 

 

We’ve spent a lot of time talking about the benefits of joining Fulfillment by Amazon. With that said, it’s also important to mention some of the drawbacks of this business service. Here are a few disadvantages of using Fulfillment by Amazon.

 

It costs money

 

As is the case with almost every service that helps companies achieve success, the companies that offer them must charge a set price to make money. If you want to join Fulfillment by Amazon, you will need to pay fees to become a member. We have more details about the fees you’ll need to pay to use this service below.

 

You’ll also pay fees

 

Fulfillment by Amazon charges its members by utilizing a combination of fees. To give you an idea of what you’ll expect to pay while using Fulfillment by Amazon, here’s an in-depth breakdown of some FBA’s most common fees.

 

  • Seller fees: Every person or company selling items on Amazon must pay seller fees. You can choose to either pay $39.99 per month for Fulfillment by Amazon’s Professional plan. Or, you can choose the Individual plan that costs you $0.99 for each item you sell. If you only plan to sell a few items, the Individual plan might be right for you. However, you’ll want to consider the Professional plan if you plan to sell more than 40 items per month.

 

  • Fulfillment fees: You’ll also need to pay fulfillment fees. Unlike Fulfillment by Amazon’s seller fees, you’ll get charged fulfillment fees based on each item you sell. This fee is for Amazon to pick your item out of one of its many warehouses. A fulfillment fee also pays for Amazon to pack and ship your items out.

 

  • Storage fees: While Amazon has a lot of storage space, you won’t get access to it for free. This brings us to our next costs, which are storage fees. Fulfillment by Amazon’s storage fees depend on how many cubic feet your items take up.

 

  • Labeling fees: When you join Fulfillment By Amazon, you’ll also learn that this company has penalties in place for sellers that don’t follow this company’s rules. One of these penalties is to charge sellers who don’t label or mislabel their products.

 

  • Stock removal fees: For a wide range of reasons, sellers sometimes want their items off of Amazon’s website. If this is the case, be prepared to pay stock removal fees. This fee gets charged on a per-item basis. In most cases, you can expect to pay $0.50 to $0.60 for each item you want Amazon to remove. You can also choose to have Amazon dispose of your items for about $0.10 to $0.15 each.

 

To get a clearer estimate of your company’s fulfillment costs, you’ll want to check out the Fulfillment by Amazon Revenue Calculator.

 

There are restrictions to what you can sell

 

Chances are, you’ve spent at least some time browsing everything for sale on Amazon. While there are many items for sale on this website, Amazon does have restrictions on what people can sell. With that in mind, it’s highly unlikely that Amazon will have a problem with you selling cell phones and similar types of electronics on this platform.

 

However, it’s still a good idea to look into Amazon’s restricted product categories and product rules to make sure you’re not violating any of its guidelines.

 

You might be dealing with increased returns

 

Another potential drawback of Fulfillment by Amazon is that you might be experiencing more returns than normal through no fault of your own. This often happens due to Amazon’s somewhat lax return policy. 

 

To put it another way, Amazon accepts returns for most of its items. This situation is great for customers. However, it might not be great for you if your customers are returning their orders around the clock.

 

You’ll have to deal with storage limits

 

It might seem odd to think of Amazon as a company with any limits. However, this business only has so much storage space to share with resellers. To help ensure this business doesn’t run out of space, there are restrictions on the amount of space your company can use.

 

For you to know how much storage space you’re allowed to have, you can use Amazon’s Inventory Performance Index or IPI. This tool is accessible from the dashboard you get when you become a member of Fulfillment by Amazon.

 

If you’re using an individual account (the one that charges you $0.99 per listing), you’re only allowed 10 cubic feet. While this might seem like a lot of space, especially if you’re reselling iPhones, it can fill up quickly.

 

On the bright side, you might be able to have this storage limit removed if you’re the owner of a Professional account and what you sell meets Amazon’s requirements. It’s also possible to have a professional account with a storage limit of 25 cubic feet.

 

A professional account allows you to have 15 more cubic feet of storage space. If you can meet Amazon’s sales volume requirements, it’s also possible to have your account’s storage limits removed.

 

If you do exceed the storage limits of your account, Amazon has no choice but to refuse to accept your items. When this happens, these items get shipped back to you.

 

Who is FBA right for?

 

 

After learning about the advantages and disadvantages of using Amazon’s fulfillment program, you might still be wondering if it’s right for you. To provide more help to you, take a look at what kinds of people and companies Amazon FBA can help.

 

  • People and companies already selling products on Amazon: If you’re already selling items on Amazon, it’s likely that you’re somewhat familiar with how this company works. Should there not be any problems you have with Amazon, it makes sense that using Fulfillment by Amazon could be your next logical step.

 

  • Someone selling smaller items: As you likely know, it’s often quite inexpensive to sell lots of small items. If you’re reselling many smaller electronics or accessories for electronics, you could benefit quite a bit from becoming an FBA member. Many sellers who use this program get to enjoy discounted fulfillment rates.

 

  • Local sellers that want more customers: Maybe you’ve been trying to get more customers to your electronics business, but struggle to do this in a local setting. If that’s the case, using Fulfillment by Amazon could be a great way to get your items in front of a lot of potentially interested customers.

 

  • You sell fast-moving products: When you’re confident that your electronics will sell quickly, it’s worth considering Fulfillment by Amazon. As mentioned earlier, Amazon has certain ways of offering benefits to sellers who sell fast-moving items. You’ll also save money by avoiding Amazon’s fees dished out to sellers with products collecting dust on this company’s shelves.

 

When should I not consider joining FBA?

 

 

Fulfillment by Amazon can be good for the right people and companies. However, this service isn’t for everyone. If you’re in any of the following situations, it might be better to avoid FBA.

 

  • Owners of established companies: Chances are, FBA isn’t going to be the best option if you own or work for an already established company that’s making a good amount of sales. You have the option of joining FBA, but it’s probably going to incur a lot of fees along the way that start eating up any profit your business could make.

 

  • You sell a lot of large or bulky items: Not all electronics resellers work with small items. Some people and companies can earn a great living by selling small electronics like cell phones and similar items. However, your company might be working with much larger electronics like computers, video game consoles, and other large electronic devices.

 

  • Your business is on a tight budget: As we mentioned earlier, working with Amazon isn’t cheap. If your company is on a tight budget, you might consider checking out less expensive services.

 

How to join Fulfillment by Amazon

 

 

It might seem like joining Fulfillment by Amazon is a complicated process. Fortunately, you should be able to become a member by following a few simple steps.

 

  • Step 1: The first step is to officially set up your account as an Amazon seller. When you have your account information entered, you’ll be able to log in to Seller Central and get started.

 

  • Step 2: After establishing your account, you can begin creating your product listings. Fortunately, Amazon makes adding products to your e-commerce store quite easy to do.

 

  • Step 3: When you have your virtual fulfillment system in place, you can begin your products ready to send over to Amazon. Once your products are ready for fulfillment, you can begin working on your shipping plan. This includes getting your ID labels ready and shipping out your products.

 

Managing orders through Amazon’s fulfillment program

 

Another important concern you might have is how to manage orders through Fulfillment by Amazon. Fortunately, this service offers you a relatively hands-free way to manage your inventory and sales.

 

Instead of feeling the need to keep tabs on everything, Amazon handles most of these tasks for you. If you’re a member of FBA, Amazon should be keeping tabs on storing, tracking, and shipping out your orders.

 

However, you can still use Fulfillment by Amazon’s online dashboard to check out order IDs, SKUs, payment statuses, and much more potentially beneficial information.

 

Orders fulfilled by Amazon

 

If you’re working with Amazon-fulfilled orders, you’ll either have orders that are Pending or in Payment Complete. A Pending order means that some of the items in an order haven’t gotten shipped out.

 

There are several reasons why an order can be in Pending status. One reason this happens is due to the purchaser’s credit or debit card payment has yet to get authorized by a payment provider. A Pending order status also happens if an item is out of stock or other items are getting consolidated because they’re available for free shipping.

 

If an order isn’t in Pending status, it should be in a Payment Complete status. This is what you want to see - it means that the order is paid for.

 

Handling multi-channel fulfillment orders

 

You might also need to handle non-Amazon orders that are otherwise known as multi-channel orders. Because these orders can get a little more complicated, you could see varying statuses available under these types of orders. Here’s more information about the possible statuses you might encounter:

 

  • Complete: The order has been shipped.

  • Shipping: This order is in the process of getting packed and shipped out.

  • Planning: The order has been placed in Amazon’s system and is getting ready for the shipping process.

  • Unfulfillable:  This indicates there is a problem with the order, whether that be an out-of-stock issue, an address-related error, or something similar.

 

Additional FBA services to take advantage of

 

 

While we’ve spent a lot of time talking about Fulfillment by Amazon, there are plenty of additional services within this platform that you’ll want to know about. Here’s a closer look at some Fulfillment by Amazon’s most popular services.

 

  • FBA Subscribe and Save: While it might not apply to the electronics industry, it’s possible to have customers subscribe to your company and receive products at regular intervals. If you can set up this type of system with your customers, you could qualify for FBA Subscribe and Save.

 

  • FBA Export: If you plan on working internationally, you might benefit from checking out FBA Export. This service allows you to set your products as being export-eligible. If your products meet Amazon’s criteria, you can start shipping internationally at a lower-than-average cost.

 

  • FBA Small and Light: Do you have a lot of items you want to sell that weigh under 12 ounces? If so, you might benefit from using FBA Small and Light. Through this service, sellers can enjoy lower fulfillment costs on a per-unit basis. With that said, your costs can vary based on where you’re shipping your items.

 

  • FBA Pan-EU: Are you thinking about expanding into international markets? If you want to buy and sell electronics in international markets, you might want to check out FBA Pan-EU. While the name of this service sounds a little strange, it can help you reach new customers in Europe.

 

  • Post-Sale Service: After one of your customers hits the Buy button, it can seem like a transaction is all wrapped up. However, that’s not always the case. Sometimes, your customers might have questions or concerns they need help with. Fortunately for FBA members, Amazon utilizes its own post-sale service. With this service, your customers can talk to an Amazon representative.

 

To be more specific, FBA Pan-EU allows you to ship items to any European country that supports Amazon Prime. These countries include, but aren’t limited to: Spain, France, the United Kingdom, Italy, and other areas.

 

What other ways can I sell products on Amazon?

 

 

While Fulfillment by Amazon is incredibly popular, there are other ways to sell products on this platform. If FBA isn’t for you, there are options to consider.

 

Fulfillment by Merchant

 

If you’d prefer to ship items to consumers and save money, Fulfillment by Merchant might be a better option. Instead of Amazon shipping your items, you take care of getting items to customers.

 

Entering the Fulfillment merchant program is best if you want to handle shipping, can get items out in a timely manner, and want the extra exposure that comes with selling through Amazon’s platform.

 

Seller-Fulfilled Prime

 

Another option to consider is Seller-Fulfilled Prime. If you can meet the extremely fast 48-hour shipping requirements, you can qualify for this program. By doing so, you’ll be able to display the coveted Prime badge on your listings.

 

Considering how fast you need to get items out, and the high shipping costs of delivering items so quickly, this option isn’t for most resellers.

 

Want extra help running an electronics business? Consider joining Trade-In Tech!

 

 

Fulfillment by Amazon has a lot of cool services and features to help you sell your items. However, you might be looking for a business service that ties in more closely to the electronics industry. If you need a helping hand improving your electronics company, you need Trade-In Tech. Let us explain more about what Trade-In Tech is and its many benefits below.

 

What is Trade-In Tech?

 

Trade-In Tech is an extremely helpful service to be a part of if you work in any capacity within the wholesale electronics industry. Since 2012, Trade-In Tech has been working with companies of all sizes in the electronics industry.

 

Electronics wholesalers on our platform love that we have listings from buyers and sellers throughout the world. Our members who work as retailers in the electronics industry enjoy how easy it is to sell items fast and make money to continue growing their companies.

 

If you want to find out more about Trade-In Tech, we’ve got plenty of reasons why we remain so popular.

 

Why should I join Trade-In Tech?

 

There are many great benefits you receive by joining Trade-In Tech. Here’s a closer look at why our company continues to remain a valuable ally for many within the electronics industry. 

 

Zero fees

 

Fulfillment by Amazon has a lot to offer. With that said, one of the main drawbacks of using this service is having to pay fees. Before you can start having Amazon help your business, you’re going to pay lots of fees along the way.

 

For a better solution, look no further than Trade-In Tech. Trade-In Tech is one of an extremely small number of services that don’t charge fees to their users. Instead of worrying about fees, you get more money going into your company’s pockets.

 

When you’re ready to sell or buy electronics on Trade-In Tech, you find what you need and talk with the seller/buyer directly. You can choose to handle a transaction through PayPal or another preferred payment method.

 

We specialize in electronics

 

Another important concern whenever you’re buying or selling electronics online is having a lot of products to choose from. While Amazon is incredibly popular, it caters to people wanting all sorts of items. This is great for the average consumer, but it can be a little too crowded for companies that only want to work with electronics.

 

On Trade-In Tech, you can rest assured that you’re only working with other people and businesses that make up the electronics industry. Because of this, it’s easier to enjoy making sales right away and not just clicking around throughout a massive marketplace.

 

Far fewer restrictions than FBA

 

In most cases, many large corporations have a lot of restrictions about how they do business. Unfortunately, these restrictions can be, well - a little too restrictive for people who are trying to grow their companies. What’s great about joining Trade-In Tech is that we don’t ever want our members to feel restricted.

 

Of course, we have rules in place to keep our members safe. However, we also understand that our members need to sell electronics in all shapes and sizes. Fortunately, you’ll be able to have the freedom in place to watch your company grow by joining Trade-In Tech.

 

Resources to help your business grow fast

 

Fulfillment by Amazon can help your business in a few important ways. However, this company won’t have many resources to help your business start growing. Fortunately, the minds behind Trade-In Tech also understand how to succeed in this industry. 

 

Our company’s CEO, Hayden Howard, started where you once were and grew Trade-In Tech into a huge business. We don’t say these things to brag about ourselves, instead, it’s so you understand that we also offer our knowledge to help your company succeed.

 

In closing, Fulfillment by Amazon can be a good way for certain companies to automate a lot of steps in the reselling process. With that said, FBA does have several major disadvantages that don’t quite make it a perfect platform. If Fulfillment by Amazon’s fees and restrictions aren’t for you, consider learning more about Trade-In Tech. Our no-fee policy and a large marketplace continue helping our members enjoy a great reselling experience.

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