Is Amazon FBA Still Worthwhile?
Amazon FBA (Fulfilment by Amazon) is a fulfilment option offered by Amazon that allows sellers to store their products in Amazon’s fulfilment centres and have Amazon handle the shipping, delivery, and customer service for their orders.
Whether or not Amazon FBA is worthwhile for a seller depends on a number of factors, including the seller’s product and business goals, the seller’s resources and the capacity to handle fulfilment themselves. Sellers also need to consider their target market, their competition and whether Amazon fits into their business model.
Benefits of Amazon FBA:
- Convenience: Amazon FBA handles the storage, picking, packing and shipping of orders, allowing sellers to focus on other aspects of their business.
- Prime eligibility: Products fulfilled by Amazon are eligible for Amazon Prime. With 60% of Amazon shoppers clicking the Prime filter, having a Prime badge can increase the visibility and appeal of your products to a large, loyal customer base.
- International shipping: Amazon FBA handles customs and duties for international orders, making it easier for sellers to expand their business internationally.
- Returns: Amazon FBA handles returns and exchanges on behalf of sellers, which can reduce the workload and potential liability for sellers.
Downsides of Amazon FBA:
- Fees: Although they are competitive, Amazon FBA charges fees for storage, fulfilment and other services, which can cut into a seller’s profits.
- Limited control: By using Amazon FBA, sellers give up some control over their fulfilment process, which can be a concern for some sellers, especially with quality control and when checking returns.
- Competition: Using Amazon FBA can make it easier for sellers to compete with larger businesses, but it also means that sellers are competing with all other FBA sellers, which can be more challenging in some categories where they are extremely competitive.
Whether or not Amazon FBA is worthwhile for you will depend on your specific circumstances and business goals. It may be worth considering as a fulfilment option, but it’s important for you to carefully weigh the potential benefits and drawbacks before making a decision.
In our experience, Amazon FBA is a fantastic platform to launch your brand and scale your sales. It is time-consuming and expensive to find a fulfilment partner and you likely won’t get that all-important Prime badge either!
We manage millions of pounds worth of sales for our Amazon clients through FBA each year, so if you’d like to learn more or speak to one of our experienced Amazon experts, then why not click the ‘Book Now’ button at the top of the page!
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