In this article, we are going to share 7 most useful benefits of Amazon FBA. Before we jump in the advantages, let's clarify the meaning of Amazon FBA for those who are not sure. The FBA abbreviation stands for Fulfilment By Amazon.
The sole purpose of it is to take the shipping away from your to-do list. You can focus on selling and Amazon handles shipping, tracking, returns and refunds. How do they get your products you may wonder.
First of all, you need to buy and ship those products to Amazon. They provide the storage space and handle the warehouse duties for you. Whenever you receive an order, Amazon picks, packs, ships and tracks the product. They also deal with customer service.
Moreover, it is a brilliant service, though you pay quite generous fees. However, it is well worth it.
7 benefits of Amazon FBA
There are plenty of benefits of Amazon FBA. Therefore, we have grouped all of them into 7 main categories to make it more straightforward:
1.Fast and hassle free shipping
Every business needs to fulfill their orders and then ship them. As a result, you probably know the feeling of frustration and lack of time to manage all the orders quickly. Whenever you come to the level where you get tens of orders per day, you recognise the need for logistical improvements.
Typically it would mean that you need to have your own warehouse and employ the staff to handle the fulfillment and shipping. Then you need additional people for customer service, and it adds up to high amounts of cost. However, if you use Amazon FBA, it allows you to outsource the entire process.
2. Shipping discounts
In the modern world, discounts are very valuable and wanted. Benefits of FBA can bring it to you. Since Amazon has various contracts with major shipping carriers and sends thousands of orders per day, they get generous discounts.
As an FBA user, you feel the benefit by getting reduced shipping prices when you ship your inventory to Amazon's warehouses. Even more, the majority of the orders are also eligible for free shipping. Besides, when you become a Prime member, you also get free two-day shipping which can increase your sales enormously.
3. Return management
By using Amazon FBA, you transfer the stress caused by unhappy customers to Amazon. They handle the returns, shipping labels and logistics. However, you need to pay a fee for each return.
4. Customer service
As mentioned above, Amazon offers excellent customer service. Therefore you can let them handle your customers daily. Probably one of the best things is that they are available for a chat, email or phone call 24/7. Whereas you would need time to rest and the response time could lead to lost sales.
5. Unlimited storage space
When you have your own warehouse, you need to use strategies to maintain the best order quality and use it efficiently. However, when you use Amazon FBA, they do it for you. There are no limitations on storage and the number of products which you should have in the warehouse.
6. Super fast delivery
To have several warehouses across the world can be costly. Therefore, Amazon offers its services. With hundreds of fulfillment centers around the globe, it can deliver an item anywhere in the world in a short time. Without Amazon, the orders take a lot longer to arrive. The customer satisfaction rate gets lower with every extra day.
7. Order fulfilment from other sales channels
The most loved feature of Amazon is that you can get Amazon fulfillment from different sales channels. This service is called Multi Channel Fulfillment (MCF). When you automate the process by using a third party software like Multiorders, Amazon automatically receives the order from the channel for fulfillment.
Besides, Amazon also sends tracking information to your customers from the other channels. Finally, Amazon FBA enables you to streamline the fulfillment and shipping processes from various sales channels in one place.