Should You Consider Switching to Amazon FBA Business This 2023?

amazon fba business

Last updated on March 9th, 2023

Written by Ken Zhou

Are you currently selling on Amazon? Or maybe you're still trying to learn more before you invest in it? Whatever your seller status on the platform is, you might want to consider switching to having an Amazon FBA business account.

If you're still unsure if this is a trajectory worth exploring, we've outlined several points on the benefits of learning how to do Amazon FBA business. Read on to know more!

Benefits of Having an Amazon FBA Business

Switching from selling on Amazon to becoming an Amazon FBA seller is a huge deal. With the risks and costs, making this move is not exactly an easy thing to do. However, here are some things that might help you decide if this is something for you.

1. Increased exposure for your products

If you sell on Amazon, you probably know that millions of sellers are already on that website. The number of sellers on the platform is quite overwhelming. So if your products aren't visible enough, then it is highly unlikely for buyers to find them. This can be a problem, especially since most customers find it difficult to navigate through the site's page. 

With Amazon FBA, however, all of your products will go straight and reachable to buyers, and they'll be able to see all their options with just a few clicks away.

Given the possible amount of exposure, enrolling your business in this program is perfect, especially If you're looking for an online platform to sell your products internationally. Although eBay has been long known as a versatile marketplace that sells a wide array of items in different categories, Amazon FBA makes it easier and less expensive to export in great volumes without going over budget. 

There are sellers out there who truly benefit from this feature because they've managed to maximize their profit by setting individual pricing for each country based on their respective currency rates. So let this be a great advantage for you, too!

2. You have your very own order management system

Like any other eCommerce business, managing orders on Amazon has become easy thanks to their Marketplace Web Service interface, which allows customers, third-party sellers, and individual merchants alike to communicate with each other through user-friendly software that makes transferring data extremely efficient. 

On top of these perks are some additional features such as automated reports on sales performance, price changes, and inventory level updates among many others, making it the perfect tool for monitoring your online transactions whether you're using Fulfillment by Amazon or not.

3. Simplified shipping solutions

Aside from making your products visible to your target market base, another thing about selling with Amazon FBA is that you get simplified shipping solutions. This advantage has been one of the primary reasons many people flock to the FBA business model. You won't have to worry about charging individual shipping rates for each product with this. Plus, you'll get access to resources that will help you ship your products in bulk. Thus, hitting two birds with one stone!

4. Reduced storage space requirement

Have you ever thought about scaling your online retail business? If so, you must save up on storage fees and spaces. Although setting up your warehouse can be an option, it isn't the most cost-effective for entrepreneurs who are just starting. 

This is a problem an Amazon FBA service can address directly. You won't need warehouses anymore because they're doing it for you through what they call self-service sortation if you're going this route. Not only will this help your business run efficiently, but it'll also give you more time to focus on other aspects of the business.

amazon fba seller

5. Easier and faster order fulfillment process

With this business model, you won't have to worry about individual items or products because all of them will be treated equally. Thus, if one product is delayed in shipment and it'll take several days before you receive the package, then your other orders won't be affected by it. This means that instead of losing your customers to competitors who may sell the same item but at a lower price, you'll get access to a wider market and keep their trust intact!

So if you're an Amazon business owner who's trying to come up with the right formula to reduce costs and maximize your profits, you need to look into ways to minimize expenses. Although outsourcing might be an option, some people are reluctant to do this because of all the risks involved in giving complete control over their inventory management system. Fortunately, Amazon FBA Business is just the thing that you need! Not only will they manage your inventory, but they will also handle shipping, so all you have to worry about right now is finding quality products at attractive wholesale prices.

6. Reduced labor cost

Although hiring an employee might sound like a good investment in terms of staffing, it isn't advised if you're starting up because of the many expenses involved in getting someone on board. However, with Amazon FBA Business, you don't have to worry about the labor costs because they will take care of everything from accepting your orders to packing and shipping them out for you. 

7. Less time-consuming process

Having your warehouse is not only an expensive affair but also a big-time waster! If you're starting up your e-commerce Amazon business, then having employees who handle the products for you might seem like the right thing to do. However, that's not an option if you can't afford it or only a few team members right now. 

Fortunately, Amazon FBA allows individuals who need help managing their inventory to find another Amazon seller who's willing to act as their fulfillment service provider so customers won't have to wait long before their items get shipped out.

8. Promotion tools at your disposal

If you're not currently selling with Amazon, then it might be a little bit difficult for you to take advantage of certain promotional tools, such as Amazon PPC and Sponsored Ads Management, along with other Amazon Marketing Services, that can help you increase your sales volume. These resources are usually meant for those earning from the site as an affiliate or those selling their products on there for at least a year. 

While this is already a disadvantage if you're starting now, having an FBA business account can give you a hand in this aspect because they have their promo tools that will give you a load of traffic and thus more exposure to your products!

9. Amazon handles customer service for you

If you're a merchant selling on Amazon, it's very important to have a solid customer service team to handle all of your customers' inquiries. Unfortunately, suppose you own a small business and don't have the budget for additional employees to help maintain customer relations. 

In that case, it can be quite difficult for you to give satisfactory answers every time someone asks about your products. Fortunately for you, having an FBA seller central account can save you from dealing with such concerns because their representatives will be more than happy to assist people in need.

10. Limited capital needed

For some, having less than $1000 may seem like not enough money for them to start their own eCommerce business. However, suppose you're interested in expanding your Amazon business and looking for a cheap solution to grow your customer base and brand awareness. 

It's for this reason that Amazon FBA will work out pretty well for you! Because they offer a fulfillment service, all you have to do is pay them $39.99 per month plus the cost of shipping which is an affordable price range that can help boost your business's income!

Final Thoughts: Consider These Benefits When You're Thinking of Building an Amazon FBA Business

So what are you waiting for? If all of these benefits sound good to you, then it is probably time for you to consider joining the Amazon FBA business bandwagon! 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 you're not sure where you can start? Our expert account managers can help you with that. Send us an email at [email protected] so we can start talking business!

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