The Pros and Cons of a ‘Fulfillment by Amazon’ Business
Selling your products through Amazon FBA has been beneficial to sellers as it takes care of storage, shipping, and delivery. However, Amazon FBA has got certain criteria for shipment. If you are dealing iwith heavy items, Amazon fulfillment does not ship them directly. You will need to go through some other alternative options that Amazon provides. This in turn takes the products to the Amazon Fulfillment Center. Chris Bowser explains the pros and cons of Amazon Fulfillment and how to overcome them.
Pros and Cons of a ‘Fulfillment by Amazon’ Business
Fulfillment by Amazon is more suited for small enterprises rather than large ones. It has been a solution for the small enteprises. Through the FBA model, business owners provide the products whereas Amazon controls packing, shipping, and contextual customer support.
Amazon FBA, established in 2006, has become popular. However, because of economic changes, the shipping cost has gone up for products that are heavy. Here are the pros and cons for FBA:
- Outsourcing fulfillment allows you to handle higher level tasks – Amazon takes care of heavy lifting which enables you to concentrate on your business growth like conversion rate optimization, targeted marketing, and new product development.
- Beneficial to you and your customers – Amazon provides free shipping for two days with Prime to greater product visibility in the marketplace and the automatic credibility that comes with the selling of your products. Amazon FBA gives next level experience to its customers and gives you additional benefits.
- Scalability – Amazon FBA acts as a nexus for multiple sales channels, apart from Prime and processing perks. An FBA business offers your products on the web and directs your sales through your business, which can attract the customers who do not search for your products on Amazon.
- Reduced costs mean increased profits – Even if you don’t have your own website or own shipping and customer service, you can get high profits even with Amazon’s service fees.
- It’s a jungle – All FBA businesses fight for their survival and their standings in the market. Although FBA businesses have more prominence than non- FBA businesses in Amazon, there is no assurance or guarantee for your business profitability and stability.
- Need for more hands than expected – You need to have more working knowledge about Amazon’s marketplace and its performance metrics which is used to assess the success and failure. You would want to keep an eye on your competitors who can urge you to get real-time information on your performers in the short and long run.
- Need a proper game plan – Apart from negotiating in the Amazon’s marketplace, you need to be watchful about the growth opportunities at every stage. As and when the market expands, there will be more competition, which results in market saturation and eats up your profits in Amazon ecosystem. Hence, you need to pursue different channels to maintain your profits.
With the pros and cons mentioned above, you need to plan in such a way that you make profits without violating the rules.
The Pros and Cons of a 'Fulfillment by Amazon' Business
Selling your products through Amazon FBA has been beneficial to the sellers as it takes care of the storage, shipping, and delivery. However, Amazon FBA has got certain criteria to ship them. If you are dealing in heavy items, Amazon fulfillment does not ship them directly; you need to go through some other alternative option that Amazon provides, which in turn takes them to the Amazon Fulfillment Center. Chris Bowser tells you the pros and cons of Amazon Fulfillment and how to overcome them.