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Pros and Cons Of Fulfilment By Amazon

Pros and Cons Of Fulfilment By Amazon
So you have just embarked on your journey of selling on Amazon and are at a loss of which way to go.
Or you might be looking out for your eCommere store’s new solution in regard to fulfilment and not sure of what to do. Whatever applies to you, if you sell products online it is important to know the pros and cons in relation to FBA tools. (Check Helium 10 Black Box to learn more about FBA tools)

What is FBA in the first place?

This is a paid service that allows the products in your store to transfer to Amazon’s fulfilment centres where they are picked, packaged, shipped and provided customer service care by Amazon.  
For you to use FBA, you will require an Amazon account, but once you have the account, you can use it for other fulfillment which denotes that, you can go ahead and utilize the product services which you sell through various channels such as your own eCommerce store as well as the stores at Amazon. 

Advantages of FBA

Now that you know what FBA is all about, it is good that you know the pros of using such a service.
Win the buy box: This is a box on a product detail page where when a customer is purchasing, they can begin by adding to their shopping cart. Customers who sell similar or same products will have to compete for this loved space. 

When you use FBA, chances of you winning the box are higher as compared to the self fulfilled sellers. It increases your chances of selling the product as compared to your competitors. If in a market where there are 20 or more people selling the same product which is featured in the box, then you will automatically sell. 
You will qualify for Amazon Prime: When you use the FBA service, your items will qualify automatically for the Amazon Prime shipping. This means that all Prime members get free two days shipping for your products. When you have such on your sleeve, customers will tend to trust you as a seller and know that they will receive their items on time and free of charge. 
Utilize multichannel fulfilment: When you utilize FBA, you don’t get limited to using the service only for the products which you sell through Amazon. You are at liberty to use it in selling products through whatever channel, thereby fulfilling your orders with FBA. You will be able to streamline the process further using tools such as Helium 10 black boxes to send the orders automaticallhy to FBA from you. 
Take advantage of hassle-free shipping and logistics: If you have ever managed fulfillments then you know very well how time-consuming and involving it is with several working parts. If you happen to have a jump in sales on Amazon, then you are looking at a scenario where you will have to do a lot of packaging and shipping the entire day. 

When you have an FBA, it means that you will be outsourcing the entire process of fulfillment. This will make you be confident that all your orders will reach your customers on time while spend your valuable time focusing on other business operations. 
Sell more: Now that you have won the buy box by default against those who don’t have the FBA, there are high chances that you will increase your sales as compared to managing the whole thing yourself. In addition, if you have added Amazon to be a new channel to your already existing eCommerce approach, the sales will be high as a result of getting in front of new clients. 

Cons of FBA

While the advantages above might be enticing, you should be aware of few drawbacks to the FBA which include:
It can be more difficult to keep track of inventory: Once your product goes into the thousands, it might be hard for all of them to sell. With that in mind, this could be tricky to keep track of what you need, what you have, and what you should cut back on especially if the products are stored in the fulfilment centers of Amazon. 
You might see an increase in returns: The easy return process on Amazon is a process that is easy. Chances are, the more product you might be having, the higher the chances of not being able to see a notable increment in returns. So you should be ready for anything; there might be an increase or no increase at all, depending on the product being marketed. 
FBA is not free: You will need to pay for the FBA based on how much inventory you will have in your inventory store and how long you are going to store it there. This means that you will have to ensure that you have a good understanding of your volumes on sales so that you keep the right amount of inventory which is needed to maintain a good profit for your eCommerce business. 
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