There has been quite some buzz in the e-commerce industry regarding FBA. Although relatively new, Fulfillment by Amazon (FBA) has played a major role in shaping the market in the last few years. More and more retailers and sellers are considering FBA to be a viable option to run their e-commerce business.

If you are a seller looking to move your inventory, the top question that you would be asking is “how?” There are many conventional methods of moving your inventory; however, we suggest that you learn what FBA is. We are sure you would want to switch to this model once you know everything about it. Here are a few reasons why FBA is worth knowing and investing in:

What is Fulfillment by Amazon?

A simple understanding would be: you sell it, Amazon ships it. Yes, it is that simple. Here is a more detailed understanding of how this works:

1. Amazon has fulfillment centers; you send your items there.
2. Amazon receives the inventory. Simultaneously, you monitor it through a tracking system.
3. Your clients can place their orders through Amazon or any other e-commerce platform.
4. Once the order is placed, Amazon delivers the item to the designated address.
5. The cherry on top is, Amazon provides customer service.

FBA is not limited to items stored and listed on Amazon fulfillment centers and e-store. You can have your products listed on your individual website and use FBA to fulfill your orders. Obviously, Amazon charges for this service. After all, they too have to make a living! So, is FBA worth it?

Customer Service

Amazon offers customer service to all its FBA users. Instead of talking to you, your customers will talk to an Amazon customer service representative. This can prove essential because of two reasons: one, you can now focus on your business rather than providing customer service, and two, Amazon is known for its superior customer service.

In case your customer is not satisfied with the product, they can return it and Amazon provides the logistics for it. However, you would be charged for this service.

Discounted Shipping Rates

Two of the most crucial aspects of the e-commerce industry are shipping time and shipping price. Amazon, with its volumes, negotiates better rates with delivery companies and extends that benefit to you and your customers.

Moreover, with FBA, items priced over $35 are eligible for free shipping. Prime members can avail Amazon Prime free two-day shipping.

Multi-Channel Fulfillment

Just because you are using a service from Amazon does not mean that it is the only place from where you can sell. FBA offers multi-channel fulfillment. You can have your own e-commerce site and still use FBA.

Customer Experience

As a seller, Amazon handles customer service for you. This means you don’t have to worry about post-sale logistics and support, improving overall customer experience.

Scale Your Business

FBA is a great way to scale your business. It allows you to expand operations without additional capital by leveraging Amazon’s infrastructure and customer base.

With FBA’s flexible rate structure, your working capital requirements are lower because you only pay for the services you use.

Focus

With logistics taken care of, you can devote more time to your core business activities.

Protection from Damages

Amazon is one of the most trusted e-commerce organizations. This trust benefits your business, and you do not have to worry about lost or damaged goods.

Efficient Returns Management

Returns are one of the most complicated aspects of e-commerce. With FBA, returns are handled efficiently, including refunds and logistics.

Get Noticed on Amazon

With many sellers offering similar products, FBA can help you compete for the Buy Box (Add to Cart visibility).

In a survey by Amazon in 2014, 86% of FBA sellers reported increased sales after adopting FBA.

Others

Amazon also provides analytics, pricing optimization, and product recommendations. Its recommendation engine helps promote your products to relevant customers.

This has been a comprehensive overview of the advantages of Fulfillment by Amazon. In the next blog, we will cover the disadvantages associated with FBA.

What are your thoughts about FBA? Have suggestions or feedback? Feel free to comment below or email us at info@i95dev.com.