A Benefit You Haven't Thought About: Does Amazon FBA Really Work for Building Customer Trust?

does fba really work - businessman smiling and holding a five-star review card

Last updated on March 9th, 2023

Written by Ken Zhou

What goes through a consumer's mind when buying from a brand? It could be anything, but one thing's certain: there’s trust in it.

Customer trust is crucial to any business, especially in a large and highly competitive marketplace like Amazon. There are numerous ways to gain it, and you wonder if acquiring Fulfillment by Amazon (FBA) is one of them. How can you become a business that many customers trust? What does it take for people to take an interest in you and feel confident spending dollars on your products and services? 

Allow us to introduce to you an Amazon FBA benefit you haven’t thought about: building customer trust.  Does Amazon FBA really work in gaining this trust? Let's find out in this article.

Heart to Cart: Is FBA Amazon Worth It? 6 Ways It Helps Establish Customer Trust

amazon fba is it worth it - amazon prime shipping on mobile device on top of a package

1. Fast and Free Shipping Eligibility

Who doesn't like fast and free shipping? With Amazon FBA, your goods are automatically eligible for it. You don't need to set up your own warehouses because you use Amazon's, which are systematic and promote faster delivery. FBA also allows your customers to buy your products with free shipping.

Amazon Prime, for example, offers specific options (e.g., two-day free shipping with no minimum spend). Because of this, Prime members spend more than those not enrolled in the program. As a seller, you shouldn't pass up this opportunity. Enroll in FBA to earn that level of customer trust.

2. Better Return and Refund Management

It's common for an Amazon FBA business to have unsatisfied customers. You can't expect every buyer to like what you offer and how you do business. So it only makes sense to receive product returns and refund requests at some point. 

If you did receive some, don't panic. Customers filing a return or refund doesn't mean you can't have their trust. The judgment lies in your response to these claims. Enrolling in the FBA program means you have Amazon's back in dealing with returns and refunds. Pay a processing fee in exchange for them working on your fulfillment process. Save time while earning customer trust.

3. Incredible Marketing Opportunities

Effective marketing is another way to gain customer trust. It doesn't just aim to sell but also establishes a relevant and personal connection with the audience. But marketing efforts require a significant time and financial investment, which is difficult for small or startup brands.

FBA helps you market on a budget with great Amazon advertising opportunities. This way, you don't have to think about marketing outside the platform right away. Focus on leveraging seller tools, including sponsored brands, sponsored displays, and sponsored products. 

Each type of marketing has its own built-in template and widgets for maximum customization. You can also set your own budget.

4. Available Customer Service Alternatives

Customer service is a success factor in an Amazon business. It's about quick and appropriate responses, transparency, customer appreciation, and genuine feedback. But customer service is easier said than done. First, it requires a lot of time and skill, which is difficult if you work on other business matters.

With Amazon FBA, you may leave this full-time job to specialists. Aside from Amazon fulfillment, FBA also offers customer service management. It includes 24/7 services (email, phone, or chat) so customers can get help when necessary. Gain their trust without sacrificing sleep or other duties.

5. Healthy Seller Account

Amazon has certain expectations for sellers, such as providing a consistently positive consumer experience. This affects the health of your account, along with other performance metrics. Maintaining a healthy account is quite challenging, especially in the ecommerce environment.

Does FBA really work in keeping my account healthy? Yes. Amazon FBA helps you process and manage orders, whether inventory issues or customer support. And if you're a well-performing Amazon seller, you get a chance to be on the Amazon Buy Box spot. It's where a top seller's product gets featured, significantly increasing their sales. Being a top seller is a good place to start when establishing trust.

6. Multiple Sales Channels

Amazon FBA features Multi-Channel Fulfillment (MCF), an automated function that fulfills orders from different sales channels. It's one of the most prominent features of FBA, and it's easy to see why. Integrating the purchase process and data into one place simplifies order management.

Customers perceive a brand with multi-channel sales systems positively. They believe it provides a seamless buying experience, a great starting point for establishing trust. With the MCF integration feature, you're perceived as a highly attentive brand to your customer's needs and buying habits.

is fba amazon worth it - blondie businesswoman making a decision with yes and no illustrations in the background

Considerations for Amazon FBA: When Does It Not Work?

Amazon FBA has its advantages, but there are a few considerations to check out before making a final decision. 

How Much is Your Budget?

Before anything else, familiarize yourself with the many Amazon FBA fees. Choosing Amazon to handle your fulfillment process comes with a hefty price tag. You have to pay storage fees, monthly subscription fees, referral fees, and refund fees. A lack of proper inventory management may cause these fees to increase further.

If you're planning to join FBA, understand how these fees work first. Consult an Amazon expert when necessary. An expert also looks for ways to reduce the chances of these fees rising. This way, you won't waste unnecessary money and focus on generating revenue.

The Competition on Amazon

Joining the FBA program gives you an edge in the market. At the same time, it's highly competitive because many businesses also use it. You have to find a way to stand out, and it's not going to be easy.

It's difficult, but nothing you can't overcome. There are many ways to stand out in the market, from emphasizing unique selling points to developing a good keyword strategy. If you need help, a professional Amazon consultant is more than willing to provide the best solutions.

Strict Regulations

To be eligible, an FBA business owner must meet a few prerequisites. These include shipping at least five packages daily, maintaining less than a 1% cancellation rate, and on-time delivery for 99% of your orders. It's not easy to meet these expectations, but doing so will propel you to the top of the market. You also get the chance to land the Amazon Buy Box spot.

Amazon is known for being strict with its policies. Be sure you're familiar with the rules before enrolling in the FBA program. Understand how Amazon inventory works, how to manage it, and troubleshoot when necessary. An Amazon marketing company walks you through these matters with ease.

Accounting Challenges

An Amazon fulfillment center doesn't operate within one state or country. So a different sales tax applies depending on where the customer buys your goods. This situation makes inventory accounting and sales tax compliance difficult to track. 

Working as an Amazon FBA seller requires close inventory monitoring for accounting accuracy and compliance. Consider using ecommerce tax or inventory management software. These tools help you stay on top of everything and avoid making costly mistakes. Most of these tools are initially technical; work with an Amazon accounting expert to help you navigate the system and use it to your advantage.

Lack of Control

Sending your inventory to an Amazon FBA warehouse means you have less control over it. That includes packaging, branding, data access, and customer support. Amazon performs all these seller duties in your place, but it isn't always perfect. So if this limited control doesn't sit right with you, reconsider your decision. 

Customer Trust is a Prerequisite to Success

It is not enough that people like your brand. You also need to gain their trust to sell your product successfully. Achieving that isn't easy, especially in a competitive and huge place like Amazon. 

With that in mind, you are considering joining the Amazon FBA program to get more people to notice your products. Amazon FBA; is it worth it? It is. It's a great place to start with the numerous opportunities to build customer trust. Amazon allows fast shipping, shipping discounts, multi-channel fulfillment, and customer support as part of this program.

These factors all contribute to customer satisfaction, eventually leading to trust. It's a worthwhile investment, but weigh the pros and cons before diving into this platform. All the best to your Amazon journey!

Need Help in Managing Your FBA Business? Grow Your Brand With Seller Interactive

Pick, pack, ship, and market in one place with Amazon FBA! Despite its limitations, it's still a worthwhile investment for many sellers. All you have to do is plan your marketing and management strategies carefully to prevent or successfully solve any issues. 

Why not work with our team if you don't feel confident about facing this alone?

Seller Interactive is an all-rounder team of Amazon experts. We help ecommerce businesses stay on top of the constantly changing Amazon marketplace.

Our services include:

  • Managing Amazon seller central accounts
  • Implementing Amazon SEO
  • Marketing through PPC
  • Launching products
  • Protecting your brand
  • Reinstating suspended accounts
  • Managing inventory
  • Selling wholesale on Amazon
  • Scaling business using demand-side platform (DSP) advertising

If you're ready to level up your Amazon game and establish customer trust, schedule a call with SI today.

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