12 Jun What is Amazon FBA? Advantages and Disadvantages of this Sales Model
Have you ever heard of Amazon FBA? Do you know what these acronyms refer to?
You probably haven’t heard of it if you’re not familiar with Amazon’s platform, but don’t worry, if you want to know everything about this concept keep reading until the end because we’ll tell you everything you need to know in this post.
What is Amazon FBA?
Amazon FBA refers to the Amazon FBA Spain program or Fulfillment By Amazon Program. This program offers the option of storing your products in Amazon’s warehouses, with the latter taking care of the entire logistics process. It is available to all sellers who want to sell their products on Amazon.
In this way, all those sellers under Amazon’s FBA program stop worrying about the storage of their products, shipping, returns, and customer service on all Amazon platforms, having to focus solely on shipping stock to Amazon.
What are the advantages of using Amazon FBA?
There are a number of advantages that the seller can benefit from when making use of Amazon FBA, among these advantages are:
- Increase in sales: using the Amazon FBA program allows your offers, in addition to gaining visibility, to also gain in competitiveness. In addition, your products are also eligible for free shipping, Amazon Prime, and other perks.
- Sell outside Spain: by benefiting from the Amazon FBA program, you can also sell in the rest of the European continent and thus reach many more customers and potential buyers. You only need to have the inventory published from a single seller account and Amazon takes care of shipping the products within European countries.
- Uninterrupted customer service: Another advantage of the Amazon FBA program is that it provides you with customer service available 7 days a week and 24 hours a day. In addition, it is a service that is provided in the local languages of Amazon’s websites where you are selling your products.
- You don’t have to send all your products to Amazon’s warehouses: another advantage to keep in mind is that it is not necessary that all the products you sell are in Amazon’s warehouses, as you can choose and send only those that interest and compensate you.
- You can even sell on vacation: If, for example, you decide to go on vacation and activate the vacation settings in FBA, your products will continue to sell while you are resting.
In addition to the advantages mentioned above, you will also benefit from the gift wrapping option, the products will be labeled “sold by “your store” and fulfilled by Amazon, faster shipping, etc.
And… What are the drawbacks of Amazon FBA?
The advantages you can find if you take advantage of the Amazon FBA program are the following:
- You lose control over customers. That is, Amazon doesn’t provide you with their details so you can’t contact them in any way. This is because when you send your products to Amazon’s warehouses, you no longer control, among other things, shipping and shipping times.
- One of the disadvantages is that it will cost you a cost (storage cost, shipping fees…).
- Another disadvantage is the risk of having your account terminated if you don’t meet Amazon’s standards. While it’s true that it’s not very common, there’s a chance that your product doesn’t have a good impact.
- The stock is still up to you. If your product sells very quickly, you should pay close attention to the stock and check your account very regularly so that you don’t find yourself in such a situation. It is highly advisable to send the corresponding products before you run out of stock at 0.
Do you want to sell on Amazon through Amazon FBA?
Starting to sell on Amazon through FBA is very simple, you just have to follow a series of very simple steps:
- You’ll need to register as a professional seller on Amazon.
- Upload the products you want to sell to the different Amazon platforms. However, you can choose whether you want to sell only in Spain or also in the rest of Europe.
- To qualify for the Amazon FBA program, you need to select the FBA option for the products you want to store in Amazon’s warehouses.
- To get the shipping labels, you first need to fill in the necessary fields.
It is very important that you do not neglect your account. Use good photos for your products, create titles that provide the benefits of your article, use the right powerwords and keywords in the features and descriptions of your products, etc. Although it may seem like an easy task at first glance, good account management is time-consuming and requires a lot of dedication.
Contact us
From Nozama we offer fully customized plans for existing Seller or Vendor accounts, as well as for those who want to open their businesses within Amazon. Do not hesitate to contact us, we will be happy to guide you and be part of your project.
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