What is Amazon FBA and what are its advantages? –

Jeff Bezos’ marketplace has become a parallel source of income for many companies, and even the center of their activity. We cannot avoid being amazed every day with their numbers and dimensions, but above all with the number of companies that are not yet part of Amazon (either because they are considered analogical beings or because of ignorance).

The truth is that there is a question that always prevails: what is Amazon FBA and what are its advantages. In this post we shed a little light on this topic for those who have doubts about this concept.

What is Amazon FBA

We usually quote this concept a lot in our articles, but it is likely that if you are not familiar with the Amazon platform, you still have some doubts with things like these. That’s why first things first: the concept of FBA comes from ‘Fullfilled By Amazon’. This is something like ‘Amazon Fulfillment’. Its actual meaning? That All logistics are processed by Amazonincluding (we will see this later) other issues such as customer service.

So, Amazon FBA sellers directly don’t have to worry about:

• Storage
• Shipments to the clients
• Processing of returns or refunds
• Customer Support in different languages ​​if you sell internationally

The only thing you will have to process yourself will be the shipment of stock to the corresponding Amazon warehouses at once.

What are the advantages of FBA?

Without a doubt, the Fulfilled By Amazon program presents some considerable advantages that can make your experience as a seller much more satisfactory.

• First of all, being an FBA allows all your products be Prime, an option that is often decisive in the purchase. Secondly, customers who are Prime, trust Amazon sellers, and are repeat customersso it compensates you in the short and long term.

• All your products will appear as ‘Sold by (your store name) and Fulfilled by Amazon’, giving you the assurance to the customer that he will not have problems with the shipment, plus you can return it with the guarantee that you will have your refund. In this way, users will give you more truth to your product compared to others managed by the vendors themselves

• The conversion of products sold through FBA is much higher, since by default you get the Buy Box almost immediately (except if you sell a listing with several sellers, which will have to work more). Therefore, customers will not think twice if the offer and the product convince them, since you already have the ‘Buy Now’ button in your listing. In case you still don’t know, take a look at our post where we tell you all the details.

• You don’t need all of your products to be shipped to Amazon warehouses, but you can choose what makes the most sense for you. Obviously, if you sell a very heavy product, it does not compensate you to have it in FBA, hence the advantage of You can choose which ones yes and which ones no.

• Finally, it should be noted that it allows you Get rid of practically everything related to customer service and returns. Of course, this last section can be a double-edged sword in certain aspects that we will see below.

Disadvantages of having your products with FBA

Like everything in life, being an Amazon FBA seller is not just about having advantages. Let us remember that the business for Amazon happens because the marketplace itself wins, and in a certain way this can harm us.

• Once you sell your products through Fulfillment By Amazon you no longer have control over customers. This is one of the issues that most often throw companies that have a long history back, because in the end you end up not having control over loyalty. You will not have their data, and therefore you will not be able to contact them for any question.. After shipment to the warehouse, you cannot control whether the shipment to the customer has been correct or whether the deadlines are adequate. Obviously, it usually works practically at 90%, but if it doesn’t, the one who suffers the consequences is your brand.

• If you don’t meet Amazon’s standards, forget it. The cancellation risk account is usually a matter of great concern, and although it is not common to encounter this type of problem, It is a possibility if your product does not have a good incidence.

• You ignore everything, but the stock depends on you. If your product is selling like hot cakes and you are not aware of the stock, it is likely that your listing will drop positions at times. Therefore, it is important to be proactive with the stock and send the corresponding batches to their warehouses before running out of anything

• Obviously it is not free, and therefore You must take into account the 15% tax for product sales (for all sellers), shipping fees and also storage.

Yes, being an FBA on Amazon allows you to forget about some things and focus on others (like advertising strategies on Amazon), but it can also give you some headaches.

How to be an FBA seller on Amazon?

Being Fulfilled by Amazon is very simple.

1. sign in
2. upload all products that you want to sell in the marketplace (at the Spanish level or at the European level)
3. Select the Amazon fulfillment option for those products for which you have chosen to send to their warehouses.
4. Fill in the fields necessary to get the labels for the shipment.
5. Ship your products to selected warehouses. If you have listings in multiple countries, there’s a chance they’ll split your shipping to multiple warehouses, but you can choose to have them do this for a small fee.

The truth is that although it may seem very easy, We do not always have all the time necessary to manage our products or our brand well.. For this, it is better to have professionals who are constantly aware of everything. If you want to know more about how to sell on Amazon, or you want our team to advise you to start on this marketplace, ¡!