What is Sold By Amazon?
Sold by Amazon (SBA) is an Amazon service that allows third-party sellers to list their products on the Amazon Marketplace and have Amazon fulfill orders on their behalf. With SBA, sellers can leverage Amazon’s logistics, customer service, and marketing capabilities to grow their business and reach more customers. Sellers who use SBA can offer their products to Amazon customers with the same level of convenience and trust that Amazon’s first-party products offer.
The program also provides access to Amazon’s Buy Box feature, which allows customers to buy directly from the seller’s listing. This makes it easier for customers to find products, as well as for businesses to increase their sales.
Who’s eligible for Sold By Amazon?
In the United States, any seller can apply to join the SBA program. However, Amazon has certain eligibility requirements that sellers must meet in order to participate in the program.
In order to participate in the SBA program, sellers must meet the following requirements: have a Verified Business Account, a Professional Selling Plan, an approved product catalog, and comply with Amazon’s Seller Agreement and applicable laws. Additionally, products listed for sale on Amazon must meet the requirements of Amazon’s Selling Agreement.
What Products are Eligible for Sold by Amazon?
Products listed for sale on Amazon must meet the requirements of Amazon’s Selling Agreement. Additionally, Amazon has specific guidelines and requirements for products sold through the SBA program. Products must be new, have a valid UPC or EAN, and must not be subject to any hazardous material restrictions.
How does Amazon price my SBA items?
When a seller lists a product for sale on Amazon, they can set a fixed price or use Amazon’s Dynamic Pricing. With Dynamic Pricing, Amazon adjusts the price of the product to remain competitive in the marketplace. Amazon may also adjust the price of products to reflect any promotions or discounts that are available.
How Much Will Amazon Pay Me?
When a product sells through Amazon, Amazon pays the seller a commission based on the total sales price of the item. The commission rate varies by product category and is typically between 8-15% of the total sales price.
Pros of SBA
1. Reach A Large Audience
One of the major advantages of the Amazon SBA Program is the access to Amazon’s vast customer base. The platform makes it easy to reach millions of potential customers, which is essential for businesses looking to increase their sales.
2. Leverage Amazon’s Fulfillment Network
With the Amazon SBA Program, businesses can take advantage of Amazon’s fulfillment network. This means that businesses can have their products stored in Amazon’s warehouses, allowing them to save on storage and shipping costs.
3. Benefit from Amazon’s Reputation
Amazon is well known for its customer satisfaction and this is one of the major advantages of the Amazon SBA Program. Customers who purchase products from Amazon are more likely to be satisfied with their purchase, which can lead to repeat purchases and long-term customers.
4. Low Setup Costs
The Amazon SBA Program does not require businesses to make any major investments. Instead, businesses can start selling products on Amazon with minimal upfront costs. This makes it easier for businesses to enter the e-commerce market.
Cons of SBA
1. High Fees
One of the major downsides of the Amazon SBA Program is the fees associated with selling products on Amazon. Amazon charges a referral fee, a per-item fee, and a fulfillment fee on each sale. This can add up, especially for businesses selling low-priced items.
2. Lack of Control
With the Amazon SBA Program, businesses do not have complete control over the products they are selling. Amazon has strict guidelines and rules that businesses must follow in order to be successful. This can be frustrating for businesses that want to have more control over their products.
3. Difficult to Stand Out
With so many products being sold on Amazon, it can be difficult for businesses to stand out. This is especially true for smaller businesses that do not have the resources to invest in marketing and advertising.
How to find items sold and shipped by Amazon
To find items that are sold and shipped by Amazon, search for the product on Amazon.com and look for the “Sold by Amazon” logo. The logo indicates that the product is eligible for free shipping and is shipped directly from Amazon.
Difference between Sold by Amazon (SBA) and Fulfilled by Amazon (FBA)
The main difference between SBA and FBA is who is responsible for shipping the product. With SBA, the seller is responsible for shipping the product to Amazon’s fulfillment center and Amazon is responsible for shipping the product to the customer. With FBA, Amazon is responsible for receiving, storing, and shipping the product to the customer.
Algopix is a powerful and easy-to-use market intelligence platform for Amazon Sellers. It is designed to help them make informed decisions about their business and maximize their success on the Amazon marketplace. Using Algopix in conjunction with the Amazon SBA Program can help sellers succeed on the Amazon marketplace. Try now for free.