IS SELLING ON AMAZON FBA STILL WORTH IT?
Many ask: is Amazon FBA worth it in 2022 and beyond?
In short: yes. But let’s go over why.
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Let's move on to the pros and cons of selling on Amazon:
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FBA is a business model that allows anyone, no matter their ecommerce experience, to open an online store and list products to millions of potential customers. But as in anything, the good comes with some downsides. Let’s quickly go over some of the pros and cons of selling on Amazon.
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PROS:
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▫️Access to Amazon’s loyal customer base:
As a small, single-person business, you can list products on a website that receives millions of visits per day.
⠀
▫️If you use FBA, Amazon takes care of logistics:
If you use Amazon’s FBA program, you will send your inventory into Amazon’s fulfillment centers, and they will handle the storage, order fulfillment, and even customer service for you.
⠀
▫️Prime shipping:
When sellers use FBA to fulfill their orders, your products will receive the Prime badge and have access to Amazon’s sizable Prime customer base that orders exclusively from Prime sellers.
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CONS:
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▫️Storage fees:
There are two types of storage fees: monthly and long-term. Learning to manage your inventory correctly will help you avoid costly storage fees.
⠀
▫️FBA fees:
FBA fees depend on the size and weight of your product. Between FBA fees and referral fees, it is typically 30-40% of your product price.
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▫️Easy for customers to return items:
Because of Amazon’s generous return policy, some sellers may experience high return rates on their products. While it is convenient for customers, it’s a hassle for sellers.
⠀
So, is Amazon FBA worth it?
⠀
In our opinion, there are far more upsides to selling on Amazon than downsides. Will every seller who launches a product on Amazon be successful? Probably not – but if you put in the work, constantly improve and learn from your mistakes, you will be successful at selling on Amazon.
⠀
Anyone can do it. Why can’t you?
In short: yes. But let’s go over why.
⠀
Let's move on to the pros and cons of selling on Amazon:
⠀
FBA is a business model that allows anyone, no matter their ecommerce experience, to open an online store and list products to millions of potential customers. But as in anything, the good comes with some downsides. Let’s quickly go over some of the pros and cons of selling on Amazon.
⠀
PROS:
⠀
▫️Access to Amazon’s loyal customer base:
As a small, single-person business, you can list products on a website that receives millions of visits per day.
⠀
▫️If you use FBA, Amazon takes care of logistics:
If you use Amazon’s FBA program, you will send your inventory into Amazon’s fulfillment centers, and they will handle the storage, order fulfillment, and even customer service for you.
⠀
▫️Prime shipping:
When sellers use FBA to fulfill their orders, your products will receive the Prime badge and have access to Amazon’s sizable Prime customer base that orders exclusively from Prime sellers.
⠀
CONS:
⠀
▫️Storage fees:
There are two types of storage fees: monthly and long-term. Learning to manage your inventory correctly will help you avoid costly storage fees.
⠀
▫️FBA fees:
FBA fees depend on the size and weight of your product. Between FBA fees and referral fees, it is typically 30-40% of your product price.
⠀
▫️Easy for customers to return items:
Because of Amazon’s generous return policy, some sellers may experience high return rates on their products. While it is convenient for customers, it’s a hassle for sellers.
⠀
So, is Amazon FBA worth it?
⠀
In our opinion, there are far more upsides to selling on Amazon than downsides. Will every seller who launches a product on Amazon be successful? Probably not – but if you put in the work, constantly improve and learn from your mistakes, you will be successful at selling on Amazon.
⠀
Anyone can do it. Why can’t you?
