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Amazon FBA: I won’t tell you to pay attention to these

by:VIPUTRANS     2020-08-22
As an Amazon seller, FBA head journey is definitely worth considering. Join Amazon FBA, you can use Amazon's warehouses around the world to store, package and deliver products.
As an Amazon seller, FBA head journey is definitely worth considering. Join Amazon FBA, you can use Amazon's warehouses around the world to store, package and deliver products. For entrepreneurs who want to expand their business and become more competitive locally or internationally, the services provided by FBA are sufficiently attractive, but before joining, you need these things:

1. Inventory management. First of all, you have to understand that Amazon will not handle everything for you. You need to pay close attention to your inventory levels and replenish them when appropriate. If you need to manage a lot of products, it is very necessary to invest in an inventory management system that cooperates with FBA. Otherwise, you may be confused by all kinds of things such as new orders and shipments, and worse, may lead to insufficient inventory or overstock.

2. Potential profit space. Next, you need to consider the profit margin you can get from selling on Amazon. On Amazon, your product will compete with other sellers from all over the world, which means that you may be given a lower price than usual. If your production and transportation costs are high, Amazon may not be suitable for you. Therefore, before entering Amazon, it is necessary to calculate the profit margin in advance.

3. Amazon fees. When conducting profit analysis, be careful not to ignore Amazon FBA fees. For FBA novices, you need to pay in advance the order processing fee, the sorting and packaging fee for each product, and the storage fee (according to the area you occupy). In addition, depending on the product weight, size, storage time (more than six months or peak season storage), you also need to pay additional fees.
FBA head trip
4. Amazon classification approval. Some special categories of products need to be approved by Amazon in advance. If your products fall into these categories, it may delay your product publication speed and affect your overall sales.

5. Freight. In some cases, you will be lucky enough to join Amazon's free shipping program. But most of the time, you need to pay the freight yourself. This may increase your monthly costs by hundreds to thousands of dollars (depending on your order volume and the type of logistics service you use).

6. Production and procurement efficiency. If you want to build a sustainable business through FBA, you need to streamline your production methods or purchasing processes. For example, if you are a distributor, you need to work hard to find a low-priced and stable product to ensure your profits. If you produce your own products, you need to ensure the output and quality of the products, which may be a huge project.

7. Returned and damaged products. The last thing you need to consider is that some products may be damaged in transit, or they may be returned by the customer. How will you handle customer return requests? What do you need to do to ensure customer satisfaction so that it will not affect your store rating? Amazon may provide you with some suggestions, but it will not operate it for you.

Is Amazon FBA headway good? FBA itself is not good or bad. If you don't want to manage your own warehouse, or you need a shortcut to get a wider range of customer contacts, then FBA may be helpful for you. On the contrary, some of the drawbacks and limitations of FBA may be against you.
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