If you ask any pro seller on Amazon, they’ll tell you Fulfilment by Amazon (FBA) is a necessity, not an option. But have you ever wondered why the vast majority of merchants feel this way? As usual, RepricerExpress has sifted through tomes and tomes of virtual material to get the most important answers. Some of the following points may even surprise you!
1. The Buy Box Becomes Even Closer to Reach
You know how you have to be a Featured Merchant before you can win the coveted Buy Box? Using FBA is one of the smartest shortcuts you can take to getting one. Merchants who go the Merchant Fulfilled route (which isn’t always or necessarily the wrong or bad way to go) tend to not be as concerned about winning a Buy Box because they’re a sole retailer. And because Amazon is filled with a mixture of MF and FBA, you can narrow your focus to just edging out those who take the latter approach.
2. Amazon Prime Buyers Will be More Incentivised to Buy From You
Put yourself in the shopper’s shoes for a second: say you’re looking at Minion slippers. Would you be more tempted by free shipping, or by having to pay for it? Amazon Prime members don’t have to worry about shipping prices — or the varying tiers of pricing for shipping — there’s no question they’ll ignore the sellers who have a shipping cost tacked on to the product cost. Further, with Amazon Prime members surging in numbers each year, you’ll want to be able to reach that growing pool of buyers.
3. Your Operating Costs Can Take a Deep Cut
Amazon charges for FBA; of that, there’s no disputing. But when you take into account the benefits of having Amazon take care of the details for you, the payoff seems pretty sweet. Here are a few things you won’t have to worry about if you use FBA, especially if you deal with a large-ish inventory:
- Warehouse rent
- Building insurance
- Product insurance
- Climate control
- Security measures
Of course, there are many more factors you have to consider when going the Merchant Fulfilled (MF) route as opposed to FBA, but that’s a starter list and the costs do add up quite quickly.
4. Time DOES Come with a Price Tag
Being a sole proprietor is one of the toughest jobs around. Not only do you have to think up a viable concept, but you also have to have the wherewithal to develop a sound business plan, make contacts in various industries, be educated about taxes and customs laws and actually deliver the products to buyers.
But let’s say a genie appeared with a magic lamp and could grant you one wish, with a stipulation: this genie could only promise to make one aspect of your Amazon business completely taken care of. Fulfilment of shipping and returns would be really high up that wishlist as it removes so many headaches and allows a seller to focus on their business and upping the volume of your sales.
5. Amazon’s Reputation is on Your Side
Amazon is one of the most powerful companies in the world, consistently ranking in the top spots when it comes to annual sales, revenue, employees and hits. To say they’ve got a lot riding on the line is an understatement; to protect its image, Amazon will go to great lengths in ensuring things run smoothly and you, as the Amazon merchant, will directly benefit from this. Because of Amazon’s size, their FBA option supplies you with everything you need, from customer support to fetching your products from a designated shelf. The smartest people in charge will tell you the key to success isn’t in being a genius, but rather surrounding yourself with them.
6. Lost and/or Damaged Products Aren’t Your Problem
Missing items happen. Nobody ever wants to be on the losing end for a gone product, but if you work around retail items long enough, it happens. However, what doesn’t have to happen is you being responsible for it. One of the neat things about FBA is they’ll be the ones who take care of a lost, damaged or waylaid items, which means you’re also more protected from negative feedback.