Amazon FBA 101: Benefits & Disadvantages (Part 1)

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Издатель Jul 15, 2021

Everyone knows that Amazon works with third-party sellers, but did you know that in 2020, nearly half of all Amazon sales came from third-party sellers and not Amazon directly? Not only that, but about 2/3 of those sellers are using the FBA platform. What some people don’t realize is that just about anyone can sell something on Amazon, provided they know where and how to do so.

Currently, more than two million people around the world are doing it, and now it’s up to you to decide if it’s the right path for your business. And FBA works not just in the United States, but in many countries worldwide. This guide will cover the major points you need to know.

Fulfillment by Amazon is a service offered by — you guessed it — Amazon, as a means for third-party sellers to automate their order fulfillment and shipping services. It’s a pretty simple concept: Sellers sell, Amazon ships. Anyone enrolled in Amazon FBA can let Amazon handle all shipping, including returns and refunds, as well as product warehousing in Amazon’s warehouses, picking and packing, and more.

Sellers send their products to Amazon, which warehouses everything and then processes all of the orders as they come in. As long as you handle the sales and make sure Amazon stays stocked with your products, the rest is done for you. And yes, you have to pay Amazon fees for it. Of course, you do. So, what do you get for the money?

24/7 Amazon customer service,
All fulfillment and shipping costs included (pick, pack, and ship),
Access to one of the world’s most dynamic fulfillment networks.

Most people are familiar with the fact that Amazon is a giant in the online retail and fulfillment space. COVID-19 and the resulting pandemic has only served to increase the use of the Amazon platform, which has over 300 million active customer accounts around the world. Bear in mind that FBA might not be ideal for low-value items, large dimension products, or other circumstances. While it offers a lot, it’s not a guaranteed solution for every seller. How can you decide?
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