You have a lot of decisions to make when starting a business. How do you deliver value to customers? How are you going to handle warehouse fulfillment? How quick will the turnaround time be between an order received and delivery? Problems like these are a primary reason why 70 percent of all businesses fail within 10 years.
Today, there are more business tools than ever before. The question that plagues many owners is identifying which tools to use, and when to do it yourself. Amazon FBA (Fulfillment by Amazon) is one such tool.
What is Amazon FBA?
Amazon is one of the hottest businesses on the planet right now. There are potential reasons for this success – including warehouse fulfillment. Amazon recognized the high cost of shipping and slow deliveries was a problem. They developed Amazon Prime as a solution. Amazon fulfillment is today a powerful competitive advantage in the e-commerce marketplace. Amazon FBA gives you the power of Amazon’s warehouse fulfillment. You focus on growing your business, rather than managing details.
A Closer Look at Amazon FBA
Amazon FBA lets you leverage the fulfillment and distribution network of Amazon:
1. Store Your Product with Amazon FBA
You store your product in an Amazon warehouse and fulfillment center. You’ll pay a fee based on the average storage space used – your daily average volume. You pay a little more for larger items, oversize items, and clothing. There is also an additional charge for seasonal and holiday storage.
2. Pack and Ship with Amazon FBA
Amazon will handle the picking, packing, handling, and shipping of your product. There is a fee for each unit shipped based on size and weight. Products shipped through Amazon FBA are included in Amazon Prime, with the customer receiving delivery within two to five days after the order is received.
3. Customer Service Through Amazon FBA
With Amazon FBA, you have access to the Amazon customer service resources. They can handle questions as well as product returns. This is included in the fulfillment fees paid to Amazon.
Is Amazon FBA Right for You?
If you don’t have easy access to warehouse fulfillment system, Amazon FBA is a powerful solution. It can accelerate starting your business and provide you with a successful fulfillment solution. It handles fulfillment details and lets you focus on more important items.
With the fees, pricing is critical to determining if Amazon FBA will work for you. Lower-priced item may not offer enough profit to cover the fees. You also need a strong supply chain in place. If you can’t keep your inventory stocked, Amazon FBA may not be the best option. If your business can absorb the costs of Amazon FBA, and especially if you are selling through Amazon, Amazon FBA is a quick and easy way to get started.
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