TulipTools Internet Business Owners and Online Sellers Community

Quote:In January, FBA shipped 796 orders for me.

    * Amazon Prime Customers- Made up 20% (157) of those orders.

    * Super-Saver Shipping - Made up 53% (423) of those orders

    * Regular Shipping - Made up 27% (216) of those orders.


Regular, merchant fulfilled, items are not eligible for Prime or Super-saver shipping, so 73% of the orders shipped in January were shipped to customers that would not have bought from me if I shipped my own product.

Quote: I spend 6 - 7 hours a week on my Amazon business which is 100% FBA. About half of that time is spent receiving and processing orders from my BuyBack site and the other half is prepping and shipping about 300 items to Amazon each week...

I process my Buyback orders on the weekend and ship to Amazon on Mondays, The shipment arrives in 2 days and is usually received within 24 hours. If you sell full-time you are much more efficient then I am and you probably have employees to do all of this.

Over that last 30 days, I've sold $21,475.15 worth of product, which is 1,421 items in 1,369 orders. I may have received 25 total emails over the whole 30 days. I haven't had to process one return since I started using FBA back in Oct...

Quote:This was originally part of another post, but I thought it was better suited on its own. If a small business owner is considering using FBA, his/her decision almost always comes down to cost. So I thought I would detail my costs to fulfill an Amazon order through FBA and compare it to what it used to cost me to fulfill the same item at Glacier Bay DVD.

This info is based on selling media items through Amazon.com and does not deal with Basic Fulfillment costs which are higher. Basic Fulfillment is for shipments outside of Amazon.com (eBay, Website, etc.)...

Quote:How do I compete with the penny-sellers?

You don’t.  The biggest advantage to selling with Amazon through FBA is that your items are eligible for their shipping specials.  That means that instead of tacking a shipping fee onto your sale price your customers are instead eligible for Amazon’s Super Saver Shipping, which is free shipping by the cheapest method on orders $25.00 and above and probably more importantly Amazon Prime customers receive the same deals on shipping for your items as they do for Amazon’s own eligible merchandise.  These are customers who pay an annual fee and in return receive free 2-day shipping year round.

As someone who never made an Amazon purchase for under $25…at least until Prime came along, I could relate to these two benefits...