Pros and Cons of Selling With Amazon FBA

Are you looking to start an online retail business? Have you considered using Amazon as a platform?

For years, online sellers have worked as third-party sellers for Amazon products.

These sellers spend hours at their local post office sending these products to their buyers.

While this is a lucrative opportunity, it isn’t the best way to do eCommerce.

You should consider selling with Amazon FBA. This service helps Amazon sellers make their process more efficient. This efficiency is what leads to higher sales and higher revenue.

Here are the pros and cons of selling with Amazon FBA.

Pro: Amazon Handles Shipping

The major advantage of Amazon FBA is that Amazon provides a warehouse for your products.

Your products get held at this warehouse and Amazon handles shipping and returns. You never have to worry about handling the products yourself.

Amazon’s shipping services will always be more efficient than yours.

You won’t have to make return trips to the post office. As such, hundreds of products can get sold each day.

Your products can also qualify for Amazon Prime’s expedited shipping options. This alone can help your eCommerce business stand out from the competition.

Con: Upfront Costs

The major challenge is that you’ll have to spend money before making a single sale.

Your cost for storage space will range between $0.50 to $0.75 per cubic foot. Depending on the number of products you have, these costs will add up.

Even if you don’t make any sales, you’ll still have to make these payments.

If you decide to close your Amazon FBA account, you’ll likely have to pay a fee to send your products to your business address.

As such, many newer sellers hesitate to work with Amazon FBA. You’ll have to consider your risk tolerance if you wish to keep your expenses as low as possible.

Pro: More Time for Communication

The success of your eCommerce business will depend on regular customer service. This is something that many traditional Amazon sellers struggle with.

They’d spend hours at the post office while missing out on responding to customer emails and comments. You also need time to speak to suppliers, manufacturers, etc.

For Amazon FBA sellers, you should learn more about EDI for Amazon.

This lets you improve communication between you and Amazon. It also sends you regular notifications when a customer contacts you.

You’ll find that with regular communication, your business will run more efficiently. This efficiency will translate to more sales and higher revenue.

Pro/Con: It’s More Hands-on

This depends on the type of business you wish to run.

If you want a side-hustle business, Amazon FBA might not be for you. You’ll be far more involved in the business than a traditional Amazon seller.

However, if you want to start an eCommerce business as your main source of income then this won’t be a problem.

Start Selling With Amazon FBA

So what’s the verdict? We think you should start selling with Amazon FBA.

Amazon has established itself as the best online retailer. You’ll always have more luck selling through Amazon than through other platforms.

You’ll face challenges and upfront costs, but you’ll also build a great eCommerce business with a lucrative income. It’ll be more hands-on, but it’ll be more rewarding.

You can also find more great business tips on our website!