What is Amazon FBA?
Amazon FBA stands for Fulfillment by Amazon.
To sum it up, Amazon FBA accomplishes your customers’ orders for you.
The fundamentals: When you sign up as an FBA seller, you deliver your inventory to any of Amazon’s FBA warehouses (Amazon will specify which location you require to ship your inventory to). When you get an order, Amazon ships it instead of you handling the shipping manually.
Fulfillment by Amazon; was formed to keep up Amazon’s strict commitment to customer satisfaction. When Amazon handles your inventory, shipping, returns, etc., they are able to keep the bulk of customer service in their hands and out of yours as a seller.
What is Amazon FBA? Advantages:
Amazon FBA increases the advantage. Many sellers make large amounts of money by selling through FBA. One of the great benefits is that as a seller, you can avoid the costs and aggravation of storing inventory, dealing with shipping, and other same issues. One of the maximum benefits offered by using FBA is that Amazon offers storage for your products. This is a very money-making advantage as compared to renting a warehouse yourself.”
Amazon FBA qualifies your listings for Amazon Prime, free shipping and other advantages. When you sell through FBA, you’re able to gain the advantages of Amazon Prime, a service that just about every Amazon customer knows and admires. You also get the advantage of free shipping on eligible products, and the “gold star” next to your listings – that is, the Amazon Prime logo.
Amazon FBA is cost-efficient. All of your shipping fees (comprising Amazon Prime and free shipping) are comprised in your fees with no additional charge. In addition, you’re only charged for the storage space and the orders you fulfill.
Amazon FBA takes the anxiety out of customer service. What is FBA useful for besides inventory management, shipping, and a sales boost? As an FBA seller, you don’t require to worry as much about dealing with customers – Amazon will handle the customer service and returns for you. Orders are shipped by Amazon in a timely manner and they process returns straightly; this dramatically cuts down on sellers’ return process time.”
Amazon FBA lets multi-channel fulfillment. This is one of the best benefits of becoming an Amazon FBA Seller – Multi-Channel Fulfillment. That means the inventory you store in Amazon’s fulfillment centers isn’t only suitable for sales on Amazon – your inventory can be sold on other e-commerce platforms through the FBA warehouses, even though the warehouses are, of course, operated by Amazon.
What is Amazon FBA Drawbacks?
What is Amazon FBA not advantageous for? There are a few drawbacks of FBA that you must consider before signing on to become an FBA seller. Here is an immediate rundown of the negative features of FBA:
Strict Requirements for Shipping. Depending on your product, you will require to stand by the rules and regulations set forth by Amazon FBA when it comes to shipping.
For instance, here are a few of the packaging rules for shipping products through FBA:
- Remove each old shipping label or any other marking, logo or branding if you are reusing boxes
- Use accurately 2 inches of padding between all of the items inside your shipment box.
- All barcodes should be entirely covered up or removed entirely if you use recycled boxes for FBA shipments.
Strict Requirements for Packing Items. Items to an FBA warehouse require to be only the specified materials to pack the products. That signifies bubble wrap, polyethylene foam, sheets of paper, or air pillows that can be inflated. Nothing else, If you use foam peanuts, any other packing peanut material, cover that may crinkle, or paper that shreds, your FBA shipment will be returned – and you’ll have to pay for it. Amazon FBA is disadvantageous if you do not follow the regulations Amazon sets forth.
Inventory Risks if your Account is deactivated. If you have inventory in FBA and your seller account gets deactivated, you should handle the deactivations instantly or danger losing your inventory. This can be very dangerous if you have very valuable items stored in the FBA warehouses.
Overall, the advantages of Amazon FBA make it quite attractive for sellers. When selling on Amazon, it can catapult business a thousand times over as long as the rules & regulations are followed.