Did you know that Amazon began as an online bookseller in 1994? It is hard to imagine the days before Amazon where everything you can think of is sold. If you are wondering is Amazon FBA worth it, we are here to share the pros and cons.
Keep reading to learn more about how does Amazon FBA work and if it’s worth it.
Pros
One of the main pros of Amazon FBA is that the shipping and logistics is streamlined and it is all taken care of by Amazon. Your job is to keep track of your listings to make sure that they are stocked on your product and then the fulfillment is taken care of from beginning to end.
Another pro is that your delivery is faster. Products that are part of FBA automatically get the Prime badge and it makes these items eligible for Prime free shipping. On top of this you do not have to charge the customer a premium shipping rate and you won’t have to pay for premium rates either because it is included with FBA service.
One last pro worth mentioning is that you have a lot more storage space with FBA. If you were to have the inventory in your home you would be limited as to how much you could have. In essence you have access to unlimited storage space because Amazon has massive warehouses all over the country that have the ability to hold plenty of goods.
Cons
One of the cons is that it costs money to use FBA and when you are first trying to get started every little bit counts. If your item is a low cost item this service is not really good either because of the way that the fees are calculated.
Another con is that with Amazon FBA there are more returns because of Amazon’s open return policy, which means fewer Amazon reimbursements. Amazon is not a fan of sitting on inventory, therefore they charge you more for items that sit longer in their warehouse. Although, these fees are not the end of the world you will have to factor them into your ongoing budget.
You can never put off the money you owe to Amazon. For example, you can’t use the next sale you make to pay off the previous sale. Amazon will always deduct the fees owed to them before they make any payment to you.
Amazon also has a list of requirements in order to fulfill through FBA. Sometimes these requirements can be tricky and confusing because Amazon has a specific way of labeling, packaging items, and shipping them.
Now You Can Answer the Question Is Amazon FBA Worth It?
We hope that now that we answered the question “is Amazon FBA worth it?” you can make an informed decision on whether or not this is right for you.
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