If you’re thinking about using FBA, then here are six reasons why you should start now. There are many disadvantages to using Amazon’s Fulfilled by Amazon (FBA) service, as we’ve covered in a previous article. But if you want to expand your business, then you’ll need to automate your processes. FBA lets scale your business in a way that no other business can with traditional business processes. The amount of time you’ll free up will allow you to look for other ways to increase your revenue, whether by adding new inventory or venturing into other opportunities.
Here are six reasons why you should consider using FBA.
Remove the need to provide customer service
Once you use FBA, you’ll no longer have to deal with customer service and returns. Amazon will handle all customer issues, including refunds. Amazon will inspect returned inventory, issue refunds, and relist items. Better yet, any damage or loss to your stock will be reimbursed by Amazon.
You won’t have to hire customer service representatives, and you won’t be stuck on the computer for hours answering questions and processing returns. That means you can sleep without having to worry about customer questions going unanswered.
Remove the need to pick, pack, and ship
When you participate in FBA, you no longer have to pack and ship your products. You won’t even have to hire people to do the same, reducing your labor costs and time to manage people. You’ll still need to inspect, label, pack, and send in your products to Amazon fulfillment centers (FC), but third-party services will also do this for a small price. Even Amazon will label your items for $0.20 each label.
If you have good relationships with your suppliers, then you may even be able to ship directly to Amazon FCs, removing the need to box and label your products. This approach is ideal, but it still has some drawbacks, like product quality concerns.
One significant benefit is that FBA products get the Prime and 2-day shipping label. Prime appeals to the potentially millions of Prime members who expect fast shipping.
You won’t need to stack your products around your house or garage. Nor will you need to rent out expensive warehouse space to stack your products. Having hundreds or thousands of products can quickly become a big disorganized mess if you don’t have some system in place, and it’s worse if you’re using your home to store these items.
Get the Buy Box
FBA products have a much higher chance of winning the Buy Box. Because FBA has fast shipping, sellers with FBA are more likely to win the Buy Box when other criteria like inventory and seller history are equal. The majority of Amazon customers click on the Buy Box, so being featured in the Buy Box will dramatically increase your sales.
You can use FBA to fulfill your orders from other sales channels, like eBay or your website on Shopify or 3dcart. Having one inventory system to manage your different sales channels will streamline your business. Additionally, those other channels will benefit from the quick shipping that FBA offers.
Increase sales volume
You can only pick, pack, and ship so many items in a day. And if you hire people to do it, they can handle so many orders in a day. Your ability to increase sales is limited to how quickly and how often you can pick, pack, and ship your products. By using FBA, you can reduce the need for warehouse workers and automate the entire process. You’ll increase your sales volume without having to find a way to fulfill those orders on time.
While FBA fees may appear a bit high at first, the benefits provided by the service far outweigh the expenses. By automating your business, you can free up time that you can use to source more products and expand your business. Having to manage people, schedules, and pay for good labor can be an unnecessary obstacle to your growth and your business potential. For these reasons alone, you should switch to FBA. But there are some good reasons why you should avoid FBA too.