With more than 5.7 billion visits every month from all around the world, Amazon has now become one of the largest e-commerce marketplaces.
If you are still not selling your products on Amazon, then you should. While there are a lot of ways to start selling on Amazon, Fulfillment by Amazon can be the easiest way out.
According to the most recent report, around 73% of sellers on Amazon use FBA to deliver their products to customers.
What Exactly Is FBA?
Fulfillment by Amazon can be the best option for sellers to fulfill their orders on time, and get free from unnecessary hassle.
Rather than paying for a separate warehouse and maintaining it, they can simply sign up with FBA and let Amazon handle all their orders.
Becoming an FBA seller comes with a cost. Amazon charges a fee for the service that it provides but it’s still much less than paying separately for the storage, packaging, and shipments of your products.
How Does Fulfillment By Amazon Work?
The entire process is very simple. All you have to do is send all your products to the Amazon warehouse, and Amazon will store all your products until you get an order.
Then, the employees of Amazon will pack your items and deliver them to your buyers.
In case your customers are not satisfied with your product and decide to return it, you won’t have to worry about that either! Amazon will take care of the returns and refunds too.
The fees of FBA will be deducted from your weekly sales.
Doesn’t it sound pretty straightforward? Well, it really is. You will be able to save more and run your business effectively, without doing all the hard work.
Why Should Sellers Choose FBA Over FBM?
This article is not to initiate any FBA vs. FBM war but to simply mention all the advantages that FBA provides that might be more beneficial for Amazon sellers.
Here’s why you should choose FBA over any other fulfillment method on Amazon:
1. Shipping Cost Is Lesser
The primary benefit of FBA is that it offers a more affordable way to deliver your items to the customers.
Delivering items through FBA is less expensive since Amazon has negotiated substantial discounts with all of the major shipping companies.
Your fulfillment fees will include a portion of that discount, which allows you to earn more profit on each sale than you would if you handled the packing and shipping yourself.
You won’t have to pay anybody else to pack your products for you or pay a shipping carrier separately to deliver your products.
If you want to ship your products to international customers, Amazon also has an export program that manages international shipments too.
2. Ship Faster
Sellers are going to save money by using FBA and that’s for sure. But what about the customers?
Well, they are going to save too! How? All the FBA-eligible products offer free shipping.
And if they are signed up for Amazon Prime, then they’ll also get free two-day shipping.
Your customers will get their orders faster, and without paying any shipping fees.
With FBA you can ship your orders faster than you normally could through FBM.
3. Storage Issues Will Be Solved
As mentioned above, FBA sellers won’t have to worry about where to store their items.
They don’t have to rent a warehouse or sacrifice their basement space just to convert it into a storage room for their products.
Simply ship your products to the Amazon warehouse and then it will be Amazon’s responsibility to keep your items safe.
Amazon does charge a fee for that, but it’s much lesser than renting an entire space or paying employees to do the job for you.
4. Better Customer Service
Amazon will remove the burden from your shoulders of dealing with customers. It is a full-time job to cater to customers and solve their issues.
This is where Amazon FBA takes the lead with its best customer-service management.
Rather than customers texting you all the time regarding their problems, they can directly get in touch with specialists of Amazon’s customer service.
It saves you a lot of time to focus on other areas of your business. Plus, your customers stay relaxed since Amazon helps them anytime they need it.
You don’t have to stay awake all night answering customers’ queries. Give that job to Amazon!
Also, Amazon deals with all the refunds and returns that you get, so that’s a bonus.
In Conclusion,
The benefits that FBA provides are just endless. You are going to save a lot of money by choosing FBA while earning maximum profits.
It is a win-win situation for you, as well as your customers who get free shipping!