Amazon needs no introduction in the online retail or ecommerce industry. This company has defied all odds to come out as frontrunners and pacesetters in the business.
While the company has been actively involved in the online retail business for quite a while, it made most of its headlines during the Covid-19 pandemic. This is as it witnessed revenue growth more than ever before and even saw its founder become the richest person in the world before Elon Musk took over that position.
There are just so many interesting facts that you should know about this company. For more information about this company, you can visit: https://www.businessinsider.com/
Seeing how this online retail giant has taken over the online retail space to a great extent, many people that sell goods online have taken to leveraging Amazon. This is by selling on their platform.
The system that allows sellers to trade using their platform is very organized. This is especially because there are various options for sellers and they can choose the one that best suits them. This article is about to discuss one of the most talked-about options and what people that use it stand to gain.
Let us talk about Amazon FBA!
About Amazon FBA
The people behind the scene at this mega online retail company keep coming up with ways to enable sellers to sell their products in the best way possible. One of the things they have realized is that there is no one-size-fits-all approach to doing this.
This is because what would suit one seller might not be ideal for another. This explains why the company has options for sellers. Amazon FBA, which is the acronym for Fulfillment by Amazon is one of those options for sellers that use the platform.
What using this option entails is that the company handles logistics (including shipping) and warehousing duties on behalf of sellers on its platform. By and large, some of the tasks that the company will carry out on behalf of sellers that choose this option include warehousing, packaging, shipping, delivery, and refunding (if need be).
Alternative to Amazon FBA
The company does not compel all of its sellers to go for this option. As explained above, this is because the company understands that the needs of sellers are different.
On this note, the major alternative to this option for sellers on the platform is known as FBM. This is an acronym for Fulfillment by Merchant. As the name suggests, it means that the seller does more by handling product storage, as well as many other order fulfillment aspects.
Fees to be Paid for Fulfillment by Amazon (FBA)
The FBA option is a welcome development because of how much involved the online retail giant is in the dealings of its sellers. However, it is not a free service.
The company requires payment for its services which include warehousing, packaging, labeling, shipping, and possibly a few other things. As it concerns payment for this service, some of the things to be known include the following:
The Product Determines the Fee to be Paid
The product in question determines how much would be paid for this service. Speaking of the product determining the fee, we are talking about things like how fragile and dangerous the product is. This also has to do with the size.
Seasons Determine the Fees
We have gathered that the fees to be paid are usually higher at a certain period of the year. More often than not, this is usually the holiday period which is between October–December. The fees are likely to come down afterward. For more on the subject of fees for FBA, you can check here.
When Fees Are Paid
The fees for the FBA services are usually to be paid between the second and third week of the month. More often than not, the payment is to be made no later than the 15th day of the month after the service was rendered.
Why Sellers Might Want to Choose Fulfillment by Amazon
We have discussed the part where payment is made for this service. The bigger question is if it is worth it. Well, that depends on the peculiarity of your situation as a seller and also how you choose to see things. However, some of the reasons Amazon FBA might be worth it include the following:
The Storage Advantage
For the record, Amazon as a company has paid serious attention to the storage of products under its care. For one, this is why their storage centers are usually very big and well equipped.
Using this service by Amazon means that you do not have to bother about renting a storage space to house your products. This is because the company will be doing this for you. This is of course for a fee.
As explained earlier, shipping and delivery are some of the perks that you enjoy using this service option from Amazon. So, you do not have to get worked up about this.
Amazon is a giant in the online retail business and one question we should be asking is why they have attained this status. Well, there are several reasons for this but one of them is because they understand the need for a top-notch customer service approach.
This is why the company has a practice of making every staff member (including high-profile ones) serve in the customer service department for at least 2 days a year. The good news for sellers that use the FBA service option is that Amazon handles customer service on their behalf.
Focus on Other Things
Because Amazon will be taking care of these very important tasks and doing a good job at them, you can focus on other important things. This also means that you get more time to pay attention to these things. You can check out the BJK University YouTube channel for more information about the benefits of Amazon FBA for sellers on the platform.
While we have mentioned the several advantages of FBA for sellers on the Amazon platform, it should be noted that there are disadvantages as well. This is why it is not even an option for every seller out there. It is also why you need to understand how it works and whether it will suit your needs as a seller on the platform.