Amazon FBA is one of the easiest ways to get started when you want to sell on Amazon. However, you will need to weigh the pros and cons before deciding to sign up.
What is Amazon FBA?
Fulfilled by Amazon is an option sellers and merchants can use for shipping services and order fulfillment. When you sign up you’ll have Amazon process the order, pack the product and ship it to the customer.
In addition, you get 24/7 customer services and access to a dynamic fulfillment network.
Pros
Simplified Selling
The biggest hurdle of selling on Amazon is perhaps the learning curve associated with the platform, and in online selling as a whole. A typical merchant setup involves having storage for their products, packaging, shipping and handling after sales support in the form of questions, refunds and returns.
When you tap into Amazon FBA you’ll be leaving it to Amazon to handle virtually all the processes involved, except the product and sales. You will appear more professional and will be able to handle things seamlessly and smoothly.
Support is Taken Care Of
Support is just as important as order fulfillment and shipping, because if you want to grow as a business then you’ll need to make sure the customers are satisfied with your product.
With Amazon FBA you get the backing of Amazon in terms of support and fulfillment. A representative will always be on hand to answer queries and offer solutions for after sales aspects. You won’t need to stay online or in front of a screen because an experienced personnel will do it for you. In a way, this allows for a smoother process overall.
Storage Won’t Be an Issue
Storage is one of the choke points when selling on Amazon. Once demand for an item picks up you will need to have them on hand so you can fulfill orders quickly. To do this, you’ll need a room or a storage space where you can keep them ready for shipping.
Space becomes a major concern if you’re selling large products and if you don’t have adequate storage in your home. However, if you have Amazon FBA then the only concern is having enough stocks and letting Amazon take care of the rest.
You Can Do Other Things
Passive income is a great way to make money online, and with most of the seller processes fulfilled by Amazon then you’ll have more time to do other things.
The Seller Guys have several amazon fba courses designed to help you achieve this setup. You can visit their website or browse through this blog for more info.
Cons
Cost
All the conveniences that come with Amazon FBA are not free- you’ll have to suit up for several costs, including fulfillment and storage fees, as well as sales tax. This might prove to be burdensome especially for those who are just starting out, but the costs are usually worth it if you’re moving your products at a steady pace.
Amazon also won’t put off payment owed and will likely charge it to a credit card on hand.
You’ll Need to Do Other Things
Once you get your Amazon sales running then it will go smoothly and with minimal input from you. All you need is to list the items, provide detailed and high resolution photos and helpful descriptions to attract buyers. When a customer orders Amazon workers will have it handled for you.
In this case, you might be underwhelmed with how little time you’d spend as an Amazon seller, which means more free time to do the things you like, including with family or your hobbies.