Here's Why You Should Consider an Amazon FBA Investment This 2023

what is amazon fba

Last updated on September 26th, 2023

Written by Ken Zhou

Do you own an Amazon store? Are you still exploring your options on the popular eCommerce platform? Whatever your seller status on Amazon is, an Amazon FBA investment is definitely worth considering this year.

In this article, we’ll outline several benefits of an Amazon FBA business. Read on to learn more about the Amazon FBA program and discover the incredible potential for growth and global reach that awaits those who seize this opportunity.

What does Amazon FBA Business Mean?

First things first—Amazon FBA stands for “Fulfilled by Amazon.” This program enables Amazon sellers to store their products in Amazon’s fulfillment centers, making it easier to store and ship orders to customers. 

You might be wondering if the Amazon FBA program is really worth the investment. Why not just do things your own way and take care of shipping orders yourself? 

Here’s why: You’ll need a lot of staffing for tracking shipments, handling orders, and other things when selling on Amazon. When you let Amazon handle the heavy lifting, you can free up so much of your time and effort. Aside from that, you can also give customers a more seamless online shopping experience with this program. 

And if that’s not enough to convince you, here are 10 more benefits:

Benefits of an Amazon FBA Investment

Making the switch from being a rookie Amazon seller to an Amazon FBA business is a huge deal. We already mentioned how the program helps you manage other key parts of the business instead of shipping orders and worrying about logistics, but what else can sellers get from it? 

With the risks and costs, this program may not be ideal for some Amazon sellers, but if you want to grow as a business and succeed long-term in the world’s largest ecommerce platform, here’s a list of benefits to help you decide.

1. Increased Exposure for Your Products

If you sell on Amazon, you already know competition is tough. If your products aren’t visible enough, interested buyers may not stumble upon them at any time during their search. This can be a problem, especially since navigating through the platform is already challenging for many customers. With FBA, you get the following perks that equate to increased product visibility:

Buy Box

You have a chance to get approved for Amazon Buy Box much faster. Buy Box is located on the right side of the product detail page. It allows customers to easily add products to their cart through the "Buy Now" box. 

Prime Eligibility

Using Amazon FBA also provides sellers access to an audience of over 200 million Amazon Prime subscribers. You also get the added credibility as a Prime seller. Get the chance to sell your products during the annual Amazon Prime Day, which has amassed a total revenue of $11.79 billion in 2021 alone. 

2. Simplified Shipping Solutions

Another huge benefit to selling with Amazon FBA is that you get various simplified shipping options, including Prime, which provides customers with fast and reliable delivery. Prime-eligible products can be delivered to customers within one or two days, depending on the shipping speed selected.

Because inventory and logistics are a huge part of selling on Amazon, this advantage is one of the primary reasons many Amazon sellers take the FBA route.

3. Convenient Storage and Inventory

Amazon's vast network of fulfillment centers allows for quick and convenient storage of your products. Once your inventory is received, Amazon manages and organizes it within its facilities. Not only will this help your business run efficiently, but it’ll also give you more time to focus on other aspects of your Amazon store.

4. Easier and Faster Order Fulfillment Process

When a customer places an order for your product, Amazon's system automatically picks, packs, and ships the item on your behalf. This process typically happens within a few hours, ensuring fast order processing.

5. Reduced Labor Cost

If you’re a beginner Amazon seller, you must look for ways to minimize expenses and properly allocate your budget. With an Amazon FBA business, you can easily manage your business without needing to employ a logistics team or a third-party courier, customer service, and overseas managers. These are roles within the scope of Amazon FBA.

6. Incentives for New Sellers

If you're not investing in Amazon FBA yet, you might miss out on excellent incentives for new sellers. 

Aside from Prime eligibility and the Buy Box advantage, you can also scale your business with Amazon's fulfillment services. 

The Multi-Channel Fulfillment, for one, enables you to sell from your own or third-party marketplace platforms with Amazon picking, packing, and shipping the products to your customers. 

Amazon sellers who use Amazon FBA also benefit from Amazon Global Logistics, which will ship your cargo from China directly to fulfillment centers in the US, UK, or Europe. 

7. Amazon Handles Customer Service For You

If you’re an Amazon seller, it’s important to have a solid customer service team to handle customer service inquiries. But if you’re just starting out, hiring additional employees would be costly.

With Amazon FBA, you'll have access to FBA customer support. Amazon will take care of your customer's concerns via phone or email. Amazon also manages customer service related to order fulfillment. The platform also directs customers who want to return a product to their online returns center. 

8. Cost-Effectiveness

Paying for more doesn’t guarantee you’ll drive more sales when selling on Amazon. For instance, some Amazon sellers pay for slow shipping options being offered by major carriers. This is costly and also affects customer satisfaction. 

But investing in Amazon FBA allows you to save more money on shipping products. Amazon doesn't charge free shipping under Amazon Prime and eligible orders. You'll only have to pay for the storage and fulfillment fees. FBA fees depend on each product’s size, weight, and category. 

How to Get Started With Your Amazon FBA Business

Do these benefits sound good to you? If you think the Amazon FBA program is a match for your business, here’s a simple guide to get you started:

1. Register for FBA

If you already have an individual or professional Amazon seller account, you're eligible to enroll in Amazon FBA. Here are the steps to register for FBA:

  • Click the gear icon in the top-right corner of Seller Central. 
  • Choose "Account Info" and click "Manage" on the "Seller Account Information" tab. The page will display the option to register to FBA or other tools and programs you may be eligible for. 
  • Review the products that you're eligible for. 

2. Ship Your Products to Amazon

Once you’ve added all products eligible for Amazon FBA, it’s time to send your stock to a fulfillment center through Send to Amazon. You must create an FBA shipment, which includes prepping, packing, and labeling your items, printing box labels, and confirming the carrier if you're sending pallet shipments. 

Ensure that you use proper packaging and labeling so that your items will get transported safely to Amazon's fulfillment centers and not incur unplanned fees. Doing this will also help Amazon to ship your products to your customers much faster.

amazon fba program

3. Wait for Order Fulfillment by Amazon

Once the product has shipped, all you do is sit back and let Amazon take care of the rest. You can track your order through their “Your Orders” page and be notified via email whenever a buyer purchases something from your store.

4. Monitor FBA Inventory Through Seller Central

Here are the steps to managing your FBA inventory: 

  • Select the menu icon in the top-left corner of Seller Central. 
  • Click "Inventory" and choose "Manage FBA Inventory." 
  • Upon clicking, you'll see different reports that can help you maintain a balanced inventory level, keep your most popular items in stock, and more. 
  • At the top of the page, you'll also see additional FBA inventory tools and resources. 

Enroll Your Online Business in Amazon FBA

If all of these benefits sound good to you, then it is probably time for you to enroll your business in Amazon FBA! Start by learning more about the basics of this program and enjoy a satisfying retail experience with relatively low financial input.

Are you up for finally starting an Amazon FBA business but unsure where to start? Our expert account managers can help scale your business. Our team can guide you in maintaining a healthy Seller Account, so you can focus on what matters more—selling on Amazon. Send us an email at [email protected] so we can start talking business!

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