You will need a pros and cons list to decide whether Amazon FBA is the correct choice for you. After all, it is how the best decisions are made, and it’s a terrific approach for you to figure out what will work best in your situation. Following a thorough examination of the platform and its features and for more information, you can visit the below link:
What are FBA’s advantages?
While this isn’t an exhaustive list (that would require a lot more time and space), here are some of the most notable features of Amazon FBA, in our opinion.
- Discounted Shipping Rates: Because you’re working with Amazon, the world’s largest fulfillment company, you’ll save money on shipping through the FBA platform. As a result, even though you’re paying fees, they can be less than you think when considering the benefits.
- FBA handles returns and refunds in addition to sales because they are considered part of the fulfillment process. This eliminates one more thing from your to-do list.
- Customer Service Management: FBA sellers have access to Amazon’s customer service. You may also use their FBA platform to handle your own customer support needs, with all of your services being routed through one platform for ease of management.
- Effortless Shipping and Logistics: Amazon takes care of everything. All you have to do is maintain track of your listings, make sure they’re stocked with stuff, and leave the fulfillment to us. You can remove a significant burden from your shoulders for a modest cost.
- Quick Delivery: Products in FBA receive the Prime badge automatically, making them eligible for Prime free shipping (to the customer) and faster shipment timeframes. Plus, because it’s included with the service, you won’t have to pay or charge premium shipping costs to do so.
- More Storage Space: How much inventory could you possibly store without FBA? Do you own or can rent a warehouse? Are you able to move and manage inventory on such a large scale? Here’s where Amazon’s Fulfillment by Amazon business shines. Because Amazon has warehouses all across the country that can hold many things, you virtually have unlimited storage space – for a fee.
- Fulfillment via multiple channels: FBA gives you access to innovative multi-channel fulfillment solutions as well as the ability to sell to targeted customers through the Amazon platform. MCF (Amazon Multi-Channel Fulfillment) allows you to sell your products on various platforms and channels while still having Amazon deliver your orders.
Seller-Fulfilled Prime vs. Amazon FBA
If you want to take advantage of Amazon’s valuable Prime client base but don’t want to pay the FBA program’s costs, you can open a Seller-Fulfilled Prime (SFP) account and sell and fulfill your products and orders. You get to utilize the Amazon Prime name and delivery rules, but you are responsible for all selection, packing, and shipping.
You must also manage any returns and pay for all shipping expenses. While FBA charges fractional fees for storage and fulfillment, Seller-Fulfilled Prime requires you to cover all shipping costs, which can eat into your profits. On the other hand, these costs are often fixed and will not change.