Why You Would Like To Give a Try To Fulfillment by Amazon (FBA) in 2020
Amazon does care about their sellers and shoppers, mostly understands their outstanding diversity, and tries to account for different needs. FBA is a constant offer that works perfectly for many sellers, but – as always – it is ultimately up to you what you choose and what you make the best profits from. Here, we analyze an entire Amazon functionality very seriously to help our customers and become better ourselves. Let’s dedicate half an hour, take a piece of pizza and a can of cola to go across the pros and cons of FBA nowadays, in 2020.
Amazon Prime Customers. Amazon cares about its Prime customers and, therefore, it is quite important to always deliver their shipments on time. When Amazon handles your parcels, it naturally values your business to a larger extent and permits you to serve their Price customers. In that way, you get access to many millions of additional buyers who do not hesitate to overpay somewhat for fast and guaranteed shipments.
Buy Box is a point of pride for Amazon. It simplifies the life of shopping people and delivers the best market offers at the present moment. For a seller, getting a product into the Buy Box means to increase sales drastically. Buy Box increases the visibility of you as an online merchant and helps to build a batch of loyal customers. When you opt for the Fulfillment by Amazon program, the Buy Box gets a few steps closer to you.
Vivid Sales. FBA does cost you a little bit of money, buy it brings higher sales in return, on the average.
Brand Trust. Customers normally like the FBA sign on the online shop page. It means that problems with goods delivery and unpleasant delays are unlikely. As a result, the intuitive confidence of buyers turns into a better conversion rate for you.
Product Transportation. You do not waste time with dirty and dull work. Amazon does it for you. A wise salesman uses this spare time to run ads, optimize keywords, and communicate with pleased customers.
Easy Delivery. Your life definitely becomes easier when you do not have to negotiate transportation deals, order by order. Logistics may be a headache in certain cases.
Customer Support. Quick answers to customer queries, complaint processing, returns, and replacements handling will be done by Amazon employees.
Product Storage. If your goods are not compact enough, storage at the Amazon warehouses might save you from a lot of unnecessary hassle and possible financial losses.
Many Options. Using FBA is possible with Shopify, Magento, BigCommerce, WooCommerce. Nowadays, they all perfectly support Amazon FBA.
Product Protection. If something goes wrong during the transportation of items that is performed by Amazon, you will get reimbursement for all losses.
This is not free. Actually, it is not even cheap. There are a lot of fees that you have to pay. Storage, packaging, shipping, listing, etc cost you real money. You have to sell actively to remain profitable. Otherwise, expenses for FBA may kill your merchandising endeavor quite quickly. Take care and do the math regularly. Being a trader means being proactive and responsible.
Branding Limitations. Amazon puts their branding on every package. Therefore, if you are keen on developing your personal trademark, you will need to invent some sort of efficient measures and tricks to combat that.
Limited Control. The cons here are exactly the same as the pros mentioned above. Amazon work in place of you in shopping/shipping/fulfillment, etc. For instance, you may want to customize this or that aspect, but it is fairly impossible with FBA.
Increased Returns. At Reprice.Online, we did notice that returns happen more often when a merchant uses Fulfillment by Amazon. This is because the Prime program offers easy returns as a part of this kind of subscription. Shoppers just do what they are entitled to, but this impacts your statistics and may frustrate you a little bit.
Your Inventory is not Yours Anymore. Amazon uses their own methods to work with stocks. It may be different from what you are used to and lead to certain technical complications.