Fulfillment by Amazon (FBA) is a beneficial program for the sellers with a nominal fee. Through which the sellers register themselves on Amazon and Amazon in turn takes care of everything on their behalf. Sellers can avail the services from the best Amazon consultants or Amazon optimization consultant in the ecommerce market to help you with the struggles of marketing and advertising.
In a nutshell, it’s the seller who makes profit by selling his products to the customers, but Amazon takes the entire headache from storing the products in their fulfillment centers and shipping them to the customers to handling returns and managing refunds.
So using FBA can be quite the game changer for your online business on Amazon. But at the same time there are certain challenges that sellers should be prepared for.
- Availing FBA services is chargeable. Amazon takes a fee for both storage in the warehouse and providing fulfillment services.
- The sellers need to pay the storage fee of the fulfillment centers even if the products are not selling. That means, the sellers might end up paying more money to Amazon than getting back the profits.
- The sellers can experience more return requests due to easy return policies in FBA program. This can cause a little inconvenience to the sellers because they have to comply by the Amazon rules and guidelines.
- The sellers are required to manage the inventories and keep stock at all the times. Failing of which can eventually lead to suspension of your seller’s account.
- There can be additional sales tax or GST depending up on the country and location.
- It is time consuming for the sellers to correctly label the products, enter into Amazon’s database and ship to the right warehouses.
Amazon optimization consultant can be of great help when dealing with Fulfillment by Amazon.