If you are serious about wanting to make money by using Amazon FBA, then you need to make sure you take the time to really understand the rules. Now maybe you have sold on other platforms such as eBay. You might have sold on author online marketplaces as well where the rules were not really all that stringent.
Well with the fulfillment by Amazon program they are much more serious about enforcing certain rules. If you get caught breaking certain rules your account will be terminated. What are some of these rules you might ask?
- You must make sure you always provide good customer service for those who are willing to do business with you. Understand that Amazon is a brand and one of the ways they built it is by making sure customers are satisfied with their overall experience. Bad customer care is a bad reflection on them and it will not be tolerated. This is especially true of anyone who wants to use the FBA program.
- You must make sure that the merchandise you list on Amazon goes into the proper categories. Some people believe that if they list in multiple categories or a category where they feel there is more traffic they will have a better chance of selling an item. This may or may not be true, but Amazon FBA will not tolerate it.
- You must also make sure the products you are selling are as stated in the descriptions you would be writing.
The FBA program is very serious about this as it is their reputation they are putting on the line. So you must make sure that you are only selling high quality items that are in fair condition at least.
The program that Amazon offers in order to help people sell more products is a good one for those who follow the rules. But even if you follow the rules this does not mean you are going to not come across some frustrations.
One of the biggest issues with Amazon FBA program comes with the state taxes people have to pay. Now you already know you have to pay state taxes where you are, but if you decide to use the FBA program you will have to pay state taxes for every state your merchandise is housed in. This is where things can get a little bit tricky.
You really should not let this worry you at all. Amazon sends out period reports that let people know where their merchandise is stored. But sometimes the company can send your inventory to another location.
Amazon collects sales taxes and remits it to you, but in the end it is going to be up to you in order to pay the taxes in each state your merchandise is sold out of.
It is understandable that some people are going to be put off by using the Amazon FBA program, because in their minds the risk is going to be a bit too much. Well you have to think about it a little bit. How much product are you moving at the moment? Do you have the room in your house in order to store what you need? Are you willing to purchase warehouse space for yourself?
You can decide to do all of these things, but the hassle is not going to be worth it. With the FBA program you can delegate all of the hard stuff and focus on finding the best products for the best prices. You no longer have to worry about where to store items or the constant process of shipping.
The risks you might take my using this program are going to be outweighed by the benefits. Amazon is going to absorb the shipping cost for you and a lot of Amazon buyers actually prefer FBA sellers, because they know they are going to get their items fast.