12/07/2022
What is FBA on Amazon?
FBA, also known as Fulfillment by Amazon, is a service that helps Amazon sellers outsource shipping to Amazon. With this fulfillment option, Amazon stores, picks, packs, ships, and delivers the products to customers. Amazon also handles customer service and returns for those orders.
Does Amazon FBA actually work?
In short: yes. But let's go over why. In 2021, Amazon's revenue was a whopping $469 billion, up from $386 billion in 2020 — and nearly one quarter (22%) of that revenue is driven by third-party sellers! Of those third-party sellers, 89% of them use Fulfillment by Amazon (FBA) to manage their Amazon business.
Is selling on Amazon FBA profitable?
Based on the information, most of the sellers earn at least $1000/month and very successful businesses can make upwards of $250,000 each month. Nearly half of the sellers can make from $12,000 to $300,000 annually, and about a fifth of sellers can make up to $3,000,000 every year.
