Do you know what the Sold by Amazon (SBA) tag represents?
Thanks to its dedication to customer satisfaction, Amazon has been the number-one online marketplace for sellers and buyers. The Sold by Amazon program is one of the ways Amazon ensures the best shopping experience for everyone.
This blog post will cover everything you need about the SBA program. Whether you are a seller or buyer, read on to discover its benefits.
Proceed further to discover the following topics:
- What is Sold by Amazon and How it Works
- How to Join Sold by Amazon Program
- The Importance of Choosing FBA When Selling On Amazon
- Steps to Identify Items Sold by Amazon
- Pros and Cons of Items Sold by Amazon
- Vital Differences Between Sold by Amazon and Shipped by Amazon
What is Sold by Amazon (SBA)?
Sold by Amazon is a selling method in which Amazon handles fulfillment, pricing, shipping, customer service, and even product returns. As a seller, this program allows you to focus more on sourcing great products and less on logistics.
When you use SBA, you hand over ownership of your products to Amazon. Amazon will set the price and send your earnings after selling. Additionally, Amazon determines the minimum gross proceeds (MGP), which is the lowest return you can get.
Advantages and Disadvantages of Amazon SBA
Let’s delve into the pros and cons of the Sold By Amazon program:
- Free: Sellers don’t pay a fee to join this program.
- Fulfillment efficiency: Amazon streamlines the fulfillment process for sellers.
- Customer trust: The “Sold by Amazon” label can boost buyer confidence due to Amazon’s reputation for reliable service.
- Global reach: SBA products can be listed on multiple Amazon marketplaces, expanding a seller’s reach internationally.
- Customer service: Amazon manages customer service and returns, saving sellers time and effort.
- Taxes: Sellers don’t have to worry about taxes as Amazon covers sales tax.
- Prime eligibility: SBA products are often Prime-eligible, attracting more customers with fast and free shipping.
- Competitive pricing: Amazon uses its dynamic pricing engine to adjust prices to stay competitive. This can increase sales.
- Fees: Amazon charges fees for every product, including referral, fulfillment, and storage fees. These fees can have you a less profits.
- Lower margins: Since Amazon’s priority is offering buyers lower prices, you may end up with lower margins per sale.
- Limited control: Amazon sellers have limited control over customer experience because Amazon handles the entire process.
How to Join Sold by Amazon Program
Follow these steps to use SBA:
- Sign up: Go to Amazon Seller Central and sign up for your Amazon seller account.
- Prepare your inventory: List your products and prepare them. Ship them to Amazon.
- Register your brand: Sign up on Amazon Brand Registry. You will receive a code after providing the necessary details. Enter the code in your seller account.
- Access your account: Go to “Account Info” under “Settings.”
- Register for SBA: Go to “Your Services” and select “Register.”
- Add products: Select “Manage Inventory” and then “Sold by Amazon.” Choose the products you want to add.
How To Find Items Sold by Amazon
To find items sold by Amazon on the Amazon website, follow these easy steps:
- Visit Amazon’s website: Go to the Amazon website by typing “www.amazon.com” in your web browser’s address bar.
- Search for a product: In the search bar at the top of the page, type in the name or description of the product.
- Browse the results: Scroll through the sidebar on the left to find the “Department” section. Select the department that best describes what you need.
- Choose your seller: Continue scrolling on the sidebar until you reach the “Seller” section. Select Amazon.com. You will see a list of products sold by Amazon on the next page.
Difference Between Sold by Amazon and Shipped by Amazon
“Sold by Amazon” and “Shipped by Amazon” refer to different aspects of how Amazon handles products on its platform. Here’s a simple breakdown of the key differences between the two:
Sold by Amazon:
- Ownership: Amazon owns and sells the product directly to customers. They set the product price.
- Fulfillment: Amazon handles the entire fulfillment process, including storage, packing, and shipping.
- Customer service: Amazon provides customer service and manages returns for these products.
- Prime eligibility: Products sold by Amazon are often Prime-eligible, offering fast and free shipping to Prime members.
- Trust: The “Sold by Amazon” label can increase customer trust due to Amazon’s reputation for reliability.
Shipped by Amazon:
- Ownership: The product is owned and sold by a third-party seller who lists it on Amazon’s platform.
- Fulfillment: Amazon stores and ships the product on behalf of the third-party seller using its fulfillment network (Fulfillment by Amazon or FBA).
- Customer service: Amazon may handle customer service and returns for products shipped by Amazon, but the seller retains some responsibility.
- Prime eligibility: Products shipped by Amazon may also be Prime-eligible, depending on the seller’s participation in the FBA program.
- Trust: While Amazon may handle the logistics, the “Shipped by Amazon” label doesn’t carry the same level of trust as “Sold by Amazon” because the seller determines the product price and quality.
What Are the Differences Between SBA and FBA?
The key difference between SBA (Sold by Amazon) and FBA (Fulfillment by Amazon) lies in ownership and control. SBA means Amazon owns and sells the product directly, while FBA means a third-party seller lists and sells the product on Amazon, with Amazon handling the fulfillment.
Sold by Amazon is more than just a label on a product. It represents a streamlined shopping experience, with Amazon taking care of everything from storage to shipping, ensuring fast and reliable service. SBA offers a win-win solution to both Amazon sellers and shoppers.
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Frequently Ask Questions on Sold by Amazon
How does sold by Amazon control the pricing of its products?
Amazon uses a dynamic pricing engine that continuously monitors competitive prices and responds to changes throughout the market.
Are all the products sold by Amazon sourced from trusted brands?
No, not all products in the Sold by Amazon (SBA) program are sourced from trusted brands. While Amazon does sell products from well-known and trusted brands, the SBA program also includes products from a wide range of third-party sellers.
Are there storage limits for Sold by Amazon products?
Yes, there’s a storage limit for Sold by Amazon products. However, it depends on the Amazon seller account type or its selling history. It also depends on storage volume and storage duration.