FBA stands for fulfillment by Amazon. It is the most advanced fulfillment network in the world created by Amazon. It is an outsourced solution for handling and shipping.
Amazon FBA is the most efficient, fast and reliable shipping service that customers can get. When you use these FBA services, you will send your product to the Amazon fulfillment centers where they kept it as their inventory. Whenever an order is placed, Amazon will pack it and send to the customers. They provide shipping globally. With the shipping services, they also provide the best customer service.
FBA manages your inventories, deliveries and customer service. It is the most efficient for the sellers to scale their business.
If you are going to consider using Amazon fulfillment service to handle your service,
1. It will cost you –
Even if you are an Amazon seller, still you have to pay for FBA services. If you choose to have your products fulfilled by the Amazon, they charge you for both storage and fulfillment. Depending on your package, they may charge you for order handling, picking, and packaging, weight handling, and storage.
2. You can fulfill orders by using other sales channels –
One of the biggest advantage of using FBA service that it provides multi-channel shipping service. It also fulfills orders from other various marketing channels. You are not confined to only on Amazon to use FBA service. It allows you to attract customers from all over the world by promoting it on various websites.
3. No limit on how many items you can send in one shipment to a fulfillment center –
Amazon does not place any type of restrictions on the quantity of your inventory. You can ship as much as you want in one single shipment. A large shipment is much more efficient than several smaller shipments.
4. It is better to start slow –
In business, it is better to start with slow to invest in Amazon FBA. Even after reading this. You may face some unexpected challenges and unforeseen expenses.
Start by offering a limited number of products which is available on Amazon fulfillment. After few months you can determine whether you can make money by using this service.
Fulfillment by Amazon is a great solution for providing packaging and shipping at different parts of the world. Only make sure that you calculate the cost and factor before you enroll in FBA.