When setting up as a seller on Amazon, if this is your goal to launch in 2020 or to expand your existing business, the first decision is deciding whether or not you will set up your account as fulfilled by merchant or fulfilled by Amazon.
The importance of this selection has far reaching implications for your business, because it dictates how future orders will be filled, either through your own resources or using the heavy lifting power of Amazon. This decision is not just important for logistics purposes, but it can also have a serious impact on your bottom line.
And it can be hard for new sellers to decide whether FBM or FBA is best. This individual decision comes down to the specifics about your business, such as its existing resources, its goals, products and size.
Understanding What Amazon Fulfillment Services Are Through FBA
Amazon Fulfillment Centers will receive your products in bulk, shipped by you through FBA. This means that the workers at Amazon select, pack and ship your products as those orders come in. This means that fulfillment is completely taken off of your plate, and also removes the hassle that can come with customer service and returns. There are several different advantages of choosing to work with FBA. These include:
- A buy box boost. FBA merchants are more likely than other merchants to appear in the buy box, even in the event that the FBA merchant has a higher selling price than others.
- Sellers using FBA get access to Prime, which means that free one-day Prime shipping is immediately connected to their products. More than 100 million consumers use Prime, which means that your products could potentially be in front of a bigger audience.
- Higher ratings. Amazon’s efficient, expensive and fast customer service network is yet another benefit of using FBA. There are some downsides of choosing fulfillment by Amazon, however, including:
- Extra shipping costs when you send your products into Amazon’s fulfillment centers.
- No control over service fees.
- Off-brand packaging since no marketing materials can be included, and Amazon has strict packaging guidelines.
Amazon fulfillment fees are a leading reason why you might consider to do the work on your own, but it’s critical to compare the potential costs as well as the benefits associated with choosing fulfillment by Amazon.
You might find out that the additional exposure offered through fulfillment by Amazon gives you a much better chance of being put in front of your ideal audience and selling more overall. You need to run your numbers and understand the data specifically to make the decision that’s best for you. If you decide to set up your company as Amazon FBA or have another online or offline business you’re thinking of selling, the experienced team at Website Closers can help to accomplish your goals of finding ideal buyers and moving through the sales process quickly and efficiently.