Introduction to Selling on Amazon via Fulfillment by Amazon (FBA)
Amazon Marketplace is often the preferred choice now for new sellers who want to make a living out of selling on Amazon wholesale and used goods. If you haven’t already tried it yet, you might wonder if the Fullfillment by Amazon option could mean more sales and more authority for your business. FBA has the potential to affect your business both positively and negatively. Take this opportunity to learn more about it to see if it’s the right move for you.
What is Fulfillment by Amazon?
Amazon’s service works by allowing them to handle your inventory and processing your orders, so that you can effectively handle thousands of items in the comfort of your own home. This can be an option for all of one’s inventory or just select items. Merchants who do not have the time or the money to ship large inventories will find FBA their best shot at becoming a successful wholeseller.
Another underestimated benefit to using fulfilment by Amazon is the additional customer bracket that is opened up through Amazon Prime subscribers. Their qualifying free shipping only applies to orders fulfilled by Amazon, and therefor will completely skip over your products if there is a competitor who is offering the same price range, but with free 2-day shipping provided by Amazon.
Prime users often filter their search results for qualified purchases, and they close on purchases much more frequently and at much higher rates.
Leave the stress of customer support to Amazon
Not only do you get Amazon’s infamous quality packing and shipping service, but they also handle your customer complaints and returns. This feature in of itself will lead to higher feedback ratings, higher likelihood of repeat buyers, and lower probability of being taken advantage of by bogus claims.
When you are just one person handling an ambitious and competitive business like online e-commerce, you cannot afford to have a slow start and begin with low feedback ratings. Even if what you sell is new or “safe” products with no moving parts, there can always be a chance that, for whatever reason, they are completely unhappy and wish to occupy your time by complaining about specific functions that you are not in control of. Since you’re not a big box store like Best Buy, you should not be handling returns that are not related to defects or damage caused by shipping.
Brand Loyalty is a big asset
Ultimately, using FBA means you will get the trusted Amazon brand logo next to your listing, which for anyone who studies buyer behaviors knows that is worth even more than an automated customer service hotline. That is your checkmark to the customer that says “We are a trusted partner, not some faceless shop in an alley somewhere.”
Remember, with FBA, you might earn less per-sale, but if you plan on doing large volumes and would like to turn this side income into something more sustainable, you can’t really afford not to partner at this point. You should go down your list of products and calculate exactly which ones would benefit the most, because you aren’t being forced to hand over all your stuff to Amazon’s warehouses.
Get started selling on Amazon with Amazon Selling Blueprint, available here.