At this point, you might be toying with the idea of integrating Amazon FBA (Fulfillment by Amazon) into your eCommerce store. The service is indeed promising but before you opt for FBA, you need to weigh the pros and cons. It is also a wise move the understand how it works to help you make the right decision.
Amazon FBA may be considered a buzzword in the eCommerce industry and its primary focus is on marketing and sales. If you have an online store, Amazon will be the one to handle the storefront software. If someone places an order from your online store, Amazon will take care of the order fulfillment process.
Amazon has been reliable in doing the fulfillment, which reduces the workload on the online store owner’s part. Amazon, having a steady supply of goods in its warehouse can pick, pack and ship the orders that have been placed. In the shipping aspect, Amazon is also capable of providing customer services, especially if it has to do with quality concerns. There are also many cases when Amazon applies policies on shipping and returns to control how some goods will come back.
This process is referred to as 3PL fulfillment services. Amazon will be in the frontline in picking, packing and shipping the orders for you. FBA, in its simplest term, means that someone handles the operations for you. So in the case your customer asks for the tracking details, your partner will share it with you.
The Advantages of FBA
The best thing about FBA is that the costs already include the customer service which Amazon provides directly. It is a huge advantage because people will feel confident when they shop on your site. It is also easy for your customers to reach out to Amazon through email, chat, or phone. You do not have to hire staff to attend your customer service line 24/7 because Amazon will take care of it.
Straightforward pricing option
Growing a business is challenging, especially when your costs start to fluctuate. Amazon FBA will provide you with a transparent pricing option and tools for easy estimation. Amazon will provide basics fees and costs for warehousing, shipping, support, and returns processing.
Cheaper shipping costs
It can be difficult to understand and plan for your shipping costs when your eCommerce business begins to grow. Amazon FBA will make the process easier for you by providing you and your customers with access to better pricing options for shipping. There are also FBA products that waive the shipping fee as it is one of the top incentives that entice people to buy from your online store. Many buyers will hesitate to complete their purchase unless it comes with free shipping.
Is FBA suitable for your business?
With all the advantages you get from FBA, deciding if FBA is right for you can still be confusing. If you think that fulfilling orders is a daunting task, FBA is going to be beneficial to you. It is also a good choice for companies that are exploring options to innovate. FBA will help you focus on other aspects of your business but fulfillment. Whether you are trying to scale up your small business or finding ways to improve customer service, FBA will help you in these key areas.