When it comes to selling products online, Amazon’s Fulfillment by Amazon (FBA) service stands out as one of the most powerful tools for growth. It allows sellers to delegate storage, packaging, and shipping tasks to Amazon, so they can focus more on growing their business. But while making your product Amazon FBA eligible is an essential part of running a successful eCommerce business, it’s equally important to understand why having your own online store is crucial—even if you’re also selling on Amazon.
In this guide, we’ll walk you through the steps required to make your product Amazon FBA eligible, and we’ll dive deeper into why building your own eCommerce site can provide long-term benefits, helping you scale beyond Amazon’s marketplace.
Why Should You Have Your Own eCommerce Store?
While Amazon’s FBA service offers great benefits for scaling businesses, it’s crucial to understand the limitations of relying solely on Amazon. Selling exclusively on Amazon means you’re subject to its ever-changing rules and policies, and you have limited control over your branding, pricing, and customer relationships.
Here are a few key reasons why building your own eCommerce store is essential:
1. Full Control Over Your Brand Identity
When you sell on Amazon, you’re restricted by their design templates and rules. You’re forced to conform to their platform, which means limited freedom in creating a customer experience that truly reflects your brand. On your own website, however, you have complete control over everything from the visual design to the way your product descriptions are presented.
Having your own online store means you can tailor the shopping experience to your target audience. You can integrate high-quality images, unique branding elements, and storytelling features to help your products stand out from the competition.
2. Avoid Amazon’s Fees
Amazon’s marketplace is undoubtedly a great place to gain exposure, but it’s also expensive. Sellers have to pay for FBA fees, referral fees, and other hidden costs. For instance, Amazon charges anywhere from 6% to 45% on each product sale depending on the category.
By having your own eCommerce store, you avoid paying these high fees, which means you can keep more of your profits. eCommerce platforms like Shopify, WooCommerce, and BigCommerce are affordable options for setting up your online store without worrying about hefty commission charges on each sale.
3. Build Direct Relationships with Customers
One of the most significant drawbacks of selling on Amazon is the lack of direct communication with your customers. Amazon owns the customer data, meaning you don’t get access to crucial information that can help you build relationships and create personalized marketing campaigns.
With your own eCommerce store, you gain access to customer emails, preferences, and purchasing behavior. This allows you to engage with customers directly through email marketing, personalized offers, loyalty programs, and social media promotions.
4. Diversify Your Revenue Streams
While Amazon FBA offers massive reach, relying exclusively on Amazon for sales can be risky. Amazon can change its policies or raise fees at any time, which could severely impact your business. By building your own eCommerce site, you diversify your revenue streams and reduce the risk associated with relying on a single platform.
A multi-channel strategy—selling on both Amazon and your independent eCommerce store—helps you stabilize your revenue, increase your market presence, and protect your business from unforeseen changes.
5. Access to Data Insights for Better Decision-Making
With your own eCommerce site, you have access to detailed customer data and analytics. This data allows you to track consumer behavior, understand what products are selling well, and identify trends to make smarter business decisions.
You can also use this data to optimize your website’s user experience, improve your product offerings, and refine your marketing strategy. By contrast, selling solely on Amazon limits your ability to gather such insights, as Amazon keeps the majority of the data to itself.
Step 1: Switching All Listings to FBA
Converting your product listings to Fulfillment by Amazon is the first step in making your product Amazon FBA eligible. Thankfully, this process is straightforward and doesn’t require starting over with new listings.
How to Convert Listings to FBA:
- Log in to Amazon Seller Central: This is where you manage your products, orders, and settings.
- Manage Inventory: Navigate to the “Manage Inventory” tab, where all of your product listings are displayed.
- Select Products to Convert: Choose the listings you wish to switch to FBA.
- Click the “Actions” Button: In the dropdown menu, select the “Change to Fulfillment by Amazon” option and confirm the changes.
Once you click “Save,” your products will be eligible for FBA, and Amazon will begin handling the storage, packaging, and shipping. This process can take just a few minutes, making it incredibly easy for sellers to get started with FBA.
Step 2: Select Label Options
After your listings are switched to FBA, you’ll need to decide whether you want to use Amazon’s label service or apply the labels yourself. Understanding the difference between these options is key to running a smooth operation.
Label Options to Choose From:
- Stickerless and Commingled Inventory: This option allows Amazon to store and ship your products without labeling each unit. While this is a more convenient option, there’s a risk that your products may be mixed with others from different sellers.
- Label Service: If you prefer more control over your inventory, you can choose Amazon’s label service. This requires each unit to have its own label, and Amazon will charge a small fee for applying these labels.
The label service option is more expensive, but it’s essential for sellers who want to keep their inventory separate from other sellers. Stickerless and commingled inventory, on the other hand, is better for those who don’t mind the potential for mix-ups.
Step 3: Sending Out the First Shipment
Once your products are FBA eligible, it’s time to send them to Amazon’s fulfillment centers. This step is critical because Amazon must receive and process your inventory before it can be listed and sold.
Important Details for Sending Your First Shipment:
- Specify Quantity: Be sure to list the exact quantity of each product you’re sending to Amazon’s warehouse.
- Select Shipping Method: You’ll be prompted to choose a shipping method. Options include air freight, ground shipping, or international shipping. It’s important to choose the option that works best for your location and delivery timeline.
- Choose a Carrier: Amazon has partnered with multiple carriers to provide competitive shipping rates. Using Amazon’s recommended carriers can help you save money on shipping costs.
Once your products are shipped to Amazon’s fulfillment centers, they will be processed, stored, and prepared for shipment to customers.
Step 4: International Sales with FBA
One of the most powerful benefits of Amazon FBA is the ability to sell globally. When you store your products in Amazon’s fulfillment centers, you can choose to sell them on multiple Amazon marketplaces. This opens up access to international customers, allowing you to increase your sales potential.
How International Sales Work with FBA:
- Global Reach: If your account is based in the U.S., for example, you can list your products on Amazon UK, Amazon Canada, Amazon Germany, and many more marketplaces.
- Automatic Shipping: Once your products are received in the fulfillment centers, they’ll be available for purchase by buyers across the globe. Amazon handles international shipping, so you don’t have to worry about cross-border logistics.
- Competitive Advantage: Selling internationally opens up new revenue opportunities. With billions of potential customers worldwide, expanding to global markets can significantly grow your business.
However, there are important factors to consider when selling internationally, such as customs, taxes, and pricing strategies. Research each market to understand the demand, competition, and best practices for pricing your products accordingly.
Step 5: Building Your Own eCommerce Store
1. Choose the Right Platform
There are several platforms available for setting up an online store, each offering different features to meet your business needs:
- Shopify: One of the most popular eCommerce platforms, Shopify offers easy-to-use tools for building, managing, and scaling your online store.
- WooCommerce: If you’re familiar with WordPress, WooCommerce is a great option for creating a customizable store.
- BigCommerce: This platform offers robust features for businesses of all sizes, including tools for managing inventory, payments, and shipping.
2. Design Your Website
The design of your website should reflect your brand’s personality and appeal to your target audience. A clean, user-friendly interface ensures customers have a smooth shopping experience. Remember, a well-designed website will help establish trust with your visitors and encourage them to make a purchase.
3. Set Up Payment Gateways
To sell products on your website, you need to set up a payment system. Popular payment gateways include PayPal, Stripe, and Shopify Payments. These options make it easy for customers to pay securely using credit/debit cards, PayPal, or other payment methods.
4. Implement Marketing Strategies
Once your store is live, it’s time to drive traffic to it. Use a combination of SEO (Search Engine Optimization), content marketing, and social media campaigns to attract potential customers. You can also leverage email marketing to nurture your leads and keep your audience engaged.
Final Thoughts
Getting your products Amazon FBA eligible is essential for scaling your eCommerce business, but it’s just one piece of the puzzle. While Amazon FBA offers a convenient way to fulfill orders and reach a large audience, having your own eCommerce store is the key to establishing long-term success.
Building your independent online store helps you maintain control over your brand, avoid high fees, build direct relationships with customers, and diversify your revenue streams. By combining the power of Amazon’s global marketplace with your own eCommerce site, you’ll be able to grow your business, increase sales, and stand out in a competitive market.
Take the steps to not only make your products Amazon FBA eligible but also invest in your own online store. By doing so, you’ll position your brand for success, both on Amazon and beyond.
