Fulfillment By Amazon Pitfalls to Consider

Whether you’re a home-based Amazon seller, you’re a growing eCommerce force-to-be-reckoned-with or a traditional business with an online store presence, Fulfillment By Amazon has likely crossed your radar. And while FBA has its benefits, there are a few Fulfillment By Amazon pitfalls to consider.

If you took part in Amazon’s original seller’s program, which is still in play, you know the simple structure. Sellers list items in the marketplace, then ship them directly to buyers on their own. FBA works a little differently, but also simply. Sellers list items and ship them to Amazon, which then delivers them to buyers.

Perks

Working with Amazon to fulfill your orders offers some perks for sure:

• You’ll have less work. You still need to research and list products, but your job is done once you send them to Amazon.
• You no longer need to keep your inventory at home in your own storage area.
• Items are eligible for Amazon Prime benefits.
• It’s affordable. Selling fewer than 40 products per month costs 99 cents per sale plus storage and handling fees. The Pro-Seller program, which involves selling more than 40 items per month, costs $39.99 per month plus storage and handling fees.
• Amazon handles returns.

Pitfalls

On the flip side, you’ll find some pitfalls to be aware of:

• Fees can eat up profits if products are not purchased at discount and sold at a high enough price.
• Items have to be prepared to Amazon’s specifications.
• Different items may need to be sent to different Amazon warehouses.
• Market research and finding profitable items can take time.
• Sales tax must be collected and paid.

For some eCommerce sellers, a major Fulfillment By Amazon pitfall is how products are delivered. If you prefer a branded unboxing experience that you control, then you don’t want FBA.

Fulfillment By Amazon means your buyer receives their product or products in Amazon boxes without any personal touch. One common practice you may also notice as a shopper is to keep shipping lists minimal, if even non-existent.

If you want control over the receipt of your products, you may want an alternative to Fulfillment By Amazon.

So, what’s next?

If you’re wondering whether FBA is right for your business, you may want to explore working with a third party (3PL) partner to fulfill your Amazon orders may be your next step.

You may also want to learn more about running an eCommerce outreach campaign to increase sales and take your business to the next level.

Finding a trusted partner in these endeavors is most likely next. If you want to explore the option, EPI Marketing Services is here to talk.

eCommerce photo by Bench Accounting on Unsplash