Decide how you will handle shipping
Shipping time can make or break a sale. A survey of U.S. shoppers
- Free delivery is the most important factor for 83% of shoppers when ordering online
- More than half (54%) have abandoned online shopping baskets because of delivery costs
Consider how much it will cost to ship an item and how far you are willing to ship it. Some sellers are happy to ship products internationally and will benefit from stores like Amazon with a worldwide customer base. Other sellers prefer to deal locally and only allow orders to be picked up or dropped off within a small radius.
Some stores may have a shipping and processing time expectation if you are going to ship items, while others will ship products for you. This can eat into your profit but may also save you time and hassle.
How shipping works on Amazon
When a customer buys a product, either Amazon can ship the order for the seller with Fulfillment by Amazon (FBA), or the seller can fulfill their own order. Many Amazon sellers use a mix of the two.
Amazon Prime shipping
Many Amazon customers look for products with the Prime badge because it indicates fast, free shipping. Using FBA to ship products is the easiest way for sellers to get the Prime badge for most offers.
Fulfillment by Amazon (FBA)
When sellers sign up to sell in Amazon stores, they’re automatically enrolled in FBA. If they decide to participate, they send inventory to Amazon fulfillment centers, and Amazon handles shipping, customer service, refunds, and returns for those products.
Some products aren’t ideal for FBA. For instance, certain hazardous goods
don’t meet fulfillment center requirements, and some seasonal products might incur excessive storage fees. Other sellers may already have a logistics network in place, or other business reasons to fulfill their own orders.