FBA is indeed a really handy service, but it costs money. This service isn’t good for low-cost items because of the way fees are calculated. So you’ll want to be selective about the products you enroll in.
Amazon also takes care of returns, but there have been sellers who see an increase in the number of returns or their frequency. This is due, in part, to Amazon’s open return policy.
You’ll also want to factor in long-term storage fees. Amazon doesn’t like sitting on inventory. Therefore, you’re going to pay more for stuff that sits longer but you’ll have to factor them into your ongoing budget.
Amazon has its own list of requirements for products that are coming into the warehouse to be fulfilled. You will have to ensure that all of your products are prepared accordingly before sending them off to Amazon.
If your business operates in one state and has its items warehoused in a different state, it can get complicated from a tax perspective. Sales tax is managed at the state level. You might not be sure which tax rate to use.
So now we have covered the disadvantages of amazon fba lets look into is amazon fba worth it now. Before getting started you can apply for amazon gtin exemption.
Is it worth it? That depends on your business and what you’re selling.
Amazon FBA is a program where you pay Amazon to store, pick, pack and ship your products for you. It costs money, but it can also be a time saver.
Amazon FBA Fees
Amazon FBA is better suited to some types of products than others. To avoid hefty storage fees it’s best to have small items that will sell fast. Large, low-cost products may be too expensive in fees to be worthwhile.
Selling online can be a big commitment. Handing fulfillment over to Amazon may free up some of your time — after all, shipping will be one less thing to worry about. You still need to make sure your product listings are accurate and monitor your account for customer service issues, but once the order has been placed, you don’t need to do anything else until it’s time to restock your inventory.
Lower Shipping Rates for Your Customers
If you ship directly from one of the Amazon warehouses, customers who qualify for Prime get free two-day shipping. If they don’t, they get low-cost standard shipping rates — better than what you’d normally find with the USPS or UPS. That alone could increase sales if you sell online through Amazon
The service is great for small and medium-sized businesses (SMBs) who don’t have the space, time, or resources to manage their own inventory and shipping.
FBA can be a powerful tool in your online sales arsenal, but it’s not always the right option for every product and every business.
Free 2-Day Shipping on Eligible Orders
Amazon Prime members get free 2-day shipping on eligible orders. Because of this, customers will often filter their search results to show only Prime items. Having Fulfillment by Amazon (FBA) status will make your products eligible for this free shipping program, potentially giving you an advantage over competitors who don’t use FBA.
