The Pros And Cons Of Using Amazon FBA Program

Amazon is the world’s most popular eCommerce platform, with millions of sales every minute. Amazon works with all third-party sellers. Thats why more and more sellers are joining the Amazon FBA program over time. If you’re thinking of that too but not sure, this post will help you to make the best decision. We’ve listed all the pros and cons of joining the Amazon FBA program below. 

Amazon FBA Pros

There are many benefits of using Amazon FBA, but here are the biggest procs that you should consider. 

• Effortless Shipping

One of the best things about Amazon FBA is that it makes the whole shipping process very easy and effortless. It’s easy for a seller to keep track of all your listing through the fnsku label and ensure the right stock amount so the Amazon fulfillment service can finish orders. So, in exchange for little service charges, you get so much burden off your shoulders.

• Discounted Shipment Charges:

Amazon is the biggest eCommerce platform in the world. Thats why they have different logistic partners that provide them great discounts as every day millions of orders are sent out to deliveries from all the Amazon Fulfillment Centers. So, when you’re using the Amazon FBA program, you eventually spend less on shipping in comparison to the money you would be spending by managing the shipping by yourself. 

• Managing Return:

If you’re selling anything online, there are always returns that must be managed properly; otherwise, they can cost you a lot. However, by using the Amazon Fba service, the return management becomes very easy and quick because Amazon takes care of all the returns and refunds the buyers as its also a part of the FBA program. In comparison to this, if you’re handling returns on your own, it costs you more money and time. 

• Fast Deliveries:

Fast deliveries have a crucial role in the success of eCommerce and customer satisfaction. And customers get even happier when they get free deliveries. With the Amazon FBA program, all the products of the buyer are automatically marked by the Amazon Prime badge, and the customer gets Prime free shipping which is even faster than normal deliveries. The good thing Amazon doesn’t charge you extra for this, and it’s included in amazon fba fees.

• Managing Customer:

All the Amazon FBA sellers get customer service from Amazon. That means you don’t have to hire a separate customer service manager or have to be always available to communicate with your buyers. Not just that, you can also use the FBA portal to manage your customer service. This makes customer management very easy. 

• More Storage Capacity:

Amazon has a giant Fulfillment center that can hold millions of products in a single warehouse. Now compare it to cost if you rent your own warehouse to manage your inventory. You’ll have to spend a huge amount on paying rent and employee salaries as well. However, with Amazon FBA, you get unlimited space to store as much inventory you want against FBA charges that are very less in comparison to the cost that you’ll have to bear to do it on your own. 

Amazon FBA Cons

There are always different perspectives of the same thing. Similarly, here are some cons of FBA. Every new seller should consider them as well before making the final decision. 

• Costing:

Selling on Amazon costs money. And money is a critical element of business, especially for the people just starting out. So some people would not like the idea of spending money on the FBA program. Also, FBA is not good for low-priced items. The reason is the way how FBA fees are calculated. You can use the Amazon FBA calculator to get the idea of the fee and do calculations if using FBA for your business would be a profitable strategy for your business or not. 

• Requirement of Products:

The FBA program has its own product pre-requirements that the sellers have to follow and prepare all the products in accordance with that. This includes the packaging, fba label, and shipment of the product to Amazon fulfillment centers as per their guidelines. Following these requirements can be a hassle for some new sellers. 

• Amazon FBA Fee:

Amazon has a strict policy when it comes to paying FBA fees. All the FBA sellers have to pay the amazon fba fees prior to the next sale. Also, Amazon automatically deducts the fees that you owe them before even making you the payment. So, in case if any seller doesn’t have a sufficient balance, they would need to provide a credit card to proceed. 

• Long-Term Storage Fees:

Amazon charges as per the duration of the inventory. So, the seller has to pay more if the inventory stays in their warehouse for an extended time. So, if your store is not making good sales, FBA can result in significant losses. 

Conclusion:

Amazon’s FBA program is undoubtedly great and has been helping sellers to raise their sales significantly and make good profits. However, one needs to take Amazon fba coaching before jumping into the FBA program.