What Is Amazon FBA?

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What Is Amazon FBA?


The FBA (Fulfillment By Amazon) Program is a well-oiled machine that makes fulfillment smooth and easy for sellers. It’s not a perfect machine, but it takes a lot of the hassle out of selling.

In order to expand its Premium Shipping capabilities, this year, Amazon invested more than $15 billion not only in infrastructure but also in tools and services to cater to its sellers’ and loyal shopper’s needs.

These are some of the perks of using FBA as your fulfillment option:

Perk #1 – Ratings


When you let Amazon take care of fulfillment, you don’t have to worry about meeting all their requirements. The bottom line is, if you make a mistake, you’ll get slapped hard.

If Amazon makes a mistake, they’ll take care of it and the most you’ll need to do is follow up to make sure the customer is happy so you don’t get a bad review or negative feedback.

Perk #2 – Fulfillment Convenience


You won’t be able to manage stock as easily, but FBA takes almost everything involved in order fulfillment off your plate.

You should still be vigilant about complaints and make an effort to encourage positive reviews and feedback, but FBA means that you can focus on this and other growth strategies rather than the mundane aspects of fulfillment.

Moreover, FBA gives you the option to do multi-channel fulfillment so that you don’t have to worry about shipping for your own online store, in addition to many other sales channels you might have running.

Perk #3 – Buy Box Boost


Fulfillment isn’t the only factor that Amazon takes into consideration when awarding the Buy Box. It’s naturally an important one, though, because it helps Amazon make more money. As an FBA seller, you can have a higher price than another seller using FBM and still win the Buy Box.

Perk #4 – Lower Cost


Because Amazon is so huge, they have great third-party arrangements for whatever shipping they can’t handle themselves. This means lower rates than what you could probably find on your own.

Perk # 5 – Access to Prime with FBA


Prime is huge. Amazon customers are loyal to the marketplace because of the fast and hassle-free shipping it provides.

FBA gives you instant access to Prime versus all the strict requirements for applying to get seller-fulfilled Prime.

Fulfillment by Amazon

“The next best thing about Amazon is their fulfillment network.
Using FBA takes care of another huge headache for sellers. Instead of fussing over storing, picking, packing, shipping, and tracking orders, Amazon does it all.
If anything goes wrong, they take responsibility for it, too. (This can be tricky because sometimes it’s a toss-up between taking a hit to keep customers happy or getting a reimbursement by making customers follow Amazon return policies, but FBA is generally an enormous help.)”