Sellers jumped at the possibility to streamline the shipping Amazon Consulting Agency procedure when Amazon initially launched its FBA service. Since then, Amazon has grown in popularity, resulting in more competition and higher costs. As a result, some individuals debate if Amazon FBA was still worthwhile in 2020.
There are a few considerations to consider when deciding if Amazon FBA is right for you.
1. Customer Support
Customers enjoy a variety of benefits, including quick shipment. Another advantage is a more significant return policy than your company is likely to provide. Unfortunately, the procedure is fantastic for consumers but not so much for sellers: every time a client returns an item, you’ll have to pay a return processing charge according to the Amazon consulting agency. Still, it means you won’t have to deal with reverse logistics or customer communications to determine whether they’re eligible for a refund.
2. The Products You Offer
Some items are more suited to Amazon FBA than others. It’s ideal to have little products that sell quickly to avoid paying costly storage costs. Large, low-cost items may have too many expenses to make them viable.
3. The Volume of Your Work
Selling over the internet requires a significant amount of time and effort. Giving Amazon fulfillment may save up some of your time; after all, shipping will be one less item to worry about.
However, using an Amazon consulting agency will add a few more activities to your to-do list. You’ll need to figure out how many products to deliver first. It’s critical to find a balance between running out of inventory and paying excessive storage expenses. Second, you’ll need to prepare products per Amazon’s specifications. This necessitates using the proper packaging; otherwise, you might expect to be charged again.
4. FBA Fees on Amazon
Amazon’s pricing is updated regularly. Regrettably, expenses nearly always increase. From January to September, monthly storage rates are $0.75 per cubic foot, and from October to December, they are $2.40 per cubic foot.
In addition, for each product you sell, you must pay a minimum of $2.50 in fulfillment costs (instead of shipping rates) to an Amazon Consulting Agency. This pricing is for the smallest size, which has a shipping weight of 10 ounces and a packing weight of 4 ounces. Large goods cost $5.42 for the first 3 pounds and $0.38 for each extra pound.
You’ll pay considerably more if you have great products (small, medium, large, or what Amazon refers to as “special oversize”). For example, an oversized oversize item costs $75.78 for the first 90 pounds and $0.79 for each pound beyond that.
Furthermore, some merchandise, such as apparel, has more significant levies. For example, instead of $2.50, a small size article of clothing has a fulfillment cost of $2.92. The good news is that Amazon has dropped its $0.40 apparel fee, making it marginally cheaper to sell clothes this year than it was last year.
Conclusion
Is it worthwhile to sell on Amazon? That is dependent on your line of business. The advantages of Amazon are that your clients will get good service (which may inspire them to purchase from you again). You will concentrate on other elements of your business by eliminating specific responsibilities from your calendar. You can also go for an Amazon PPC consultant to get efficient product campaigns and scale your business.
