Maybe you are considering launching some new products. Why would you want to launch products through Amazon FBA? In this article we cover the top 7 benefits of using FBA or fulfillment by Amazon.
Benefit 1 Trust
Amazon has spent over 20 years building its reputation. Customers trust Amazon. More than 100 million people have an Amazon Prime account and 300 million plus shoppers visit the platform.
By selling your products through Amazon you leverage this trust. A normal e-commerce site may have conversions between 1% and 3%, whereas products in Amazon can have conversions of 10% to 30% or more.
By selling through Amazon, especially through Fulfillment by Amazon, you get an automatic sales boost for your products.
Benefit 2 Amazon Picks and Packs
If you use fulfillment by Amazon, every time a customer places an order their staff and robots will find the item, pack and label, and send out the shipment. Even if you have a sudden surge or promotion, Amazon’s infrastructure can handle shipping out thousands of your product in a single day.
If you had to manage this, and you had a sudden surge in demand, your own warehouse might not be able to cope with all the additional work.
Benefit 3 Return Handling
If there’s a problem with your product or a customer wants to return it, Amazon will handle the returns on your behalf. This saves a lot of headache and overhead. Often, they will relist the item for you if there is no sign of damage to the packaging or product.
Benefit 4 Warehouse Space
Even a new seller can store 5000 standard size products, or 500 oversize products in Amazon’s warehouse from day one. It would be very expensive for you to rent a similar amount of space. After a few weeks of selling on Amazon, they increase the limit of how much you can store.
You get an almost unlimited size warehouse if you use fulfillment by Amazon. And, if you had your warehouse and reduced how much stock you’re holding you would still have to pay the overhead for the warehouse.
Whereas in Amazon you can increase or decrease how many units you’re holding without affecting your overheads.
Benefit 5 Customer Service
Amazon handles customer service related to the order on your behalf. Yes you need to answer some emails, but the vast majority is handled by Amazon. If someone calls wanting to know where their shipment is, Amazon’s team is available 24-7 so you don’t have to be.
Benefit 6 Discounted Shipping and Prime
Amazon has tens of millions of customers using Prime. They get free or heavily discounted shipping. This makes shopping on Amazon even more appealing. If you ran your own e-commerce and shipping operation your small volumes would mean that you have to pay a high price.
By leveraging Amazon’s system, the delivery cost to the customer is reduced and they are far more likely to buy if they are already a Prime member.
Benefit 7 Automation
Using fulfillment by Amazon lets you automate nearly all the aspects of your business, including everything to do with the shipping, storage, labeling and general warehousing tasks. This saves you a lot of effort, time and capital.
An additional bonus of selling on Amazon is growth. Amazon represents more than 50% of all E-Commerce in the USA and it is growing at 20 to 30% every single year. There has never been a better time to start and launch products.