Top 5 Benefits of Amazon FBA


Why You Should Consider AMAZON FBA?

FBA just stands for Fulfillment by Amazon. After reading this page, I hope you will be convinced that embarking on this incredible opportunity will be well worth your time and effort. (And I really mean a lot of it!) I will list down the top 5 benefits that you will enjoy when you go with Amazon FBA.

1. It’s freeing up your time

Amazon Fulfillment Center
Can you imagine the cost to set up your own efficient fulfillment center? Why not tag on Amazon’s infrastructure?

Have you ever tried doing the order fulfillment yourself? You have to talk to the potential buyer, pack your product and prepare the package for shipping. Then you have to manually drop it at your local post office. (And more often than not, there’s a long queue there!)

It really just means “You SELL, Amazon STORES, HANDLES, PACKS, SHIPS, MANAGES CUSTOMER SERVICE and RETURNS”

Sure, you can hire people to handle the fulfillment process yourself. But that also means you got to spend time hiring and manage packers which , let’s be honest, I rather not spend the time and money on.

2. It is a steroid for your business

Okay, maybe this point is on e-commerce in general but it drives home a point that you can leverage FBA with. Read on!

Taken from Statista: More and more people in the US are shopping online.

Not only are more people putting items and buying from their e-cart, the proliferation of online shopping is still rapidly growing in USA. (This is also true world-wide and we will explore more about this soon.)

Rise of E-commerce in the US Alone

Taken from Statista: Interesting graph showing how holiday seasons affect E-commerce sales. (Peaks near Christmas season)

The rise of E-commerce as explained by CNBC on Youtube
Taken from Statista: Amazon.com is way ahead of its competitors.


Third party sellers makes up more than 50% of sales on Amazon.

And Amazon knows that very well. They NEED 3rd party sellers like you and I to be on their platform which was why Amazon is investing a lot to make their platform more appealing to third party sellers.

What’s driving Amazon Growth in 2019? Growing Number of Customers, International Expansion, 3rd Party Sellers and Innovation.

Some people liken this opportunity to that of the age of the gold rush where many in hopes of striking riches went out to the wild west to mine some gold. Except, the wild west today (USA) beckons for people outside of the US to come and strike while the iron is hot. No kidding, like white glowing hot.

3. Tagging onto Amazon’s perks!

Amazon has got some of the best customer service there is on the planet, and I don’t write that down causally. They’re that good and I’ve never had a bad encounter with their customer representative.

They will treat your customers right with the added bonus of delivering your product the next day or two.

Amazon is also a household brand which your customers love and trust. There’s a report that states that half of millennial today would rather give up sex and alcohol than to give up Amazon!

Millennials choose Amazon over sex and alcohol
Taken from Max Borges Agency

Why wouldn’t you want in on the action?

4. Win the Buy Box and Qualify for Amazon Prime!

The Buy Box is akin to a competitive sport where various sellers selling the exact same item will compete for the coveted prize; which is winning the Buy Box.

While there are many factors that affects the chances of winning the Buy Box, one of them is using FBA.

By using FBA, the chances of you winning the Buy Box spot over other sell-fulfilled sellers are significantly higher. It has become a new norm for sellers to head to FBA just to get the Buy Box.

You will also be automatically qualified for Amazon Prime shipping – Prime members can get free 2-day shipping for your products.

These Prime members are customers ready to buy and when they see that they can get the free 2-day shipping on your product, you will be viewed as a trusted seller. This in turn helps bring in the moolah!

5. Profits Kaching!

Since Amazon have taken care of all the heavy lifting in your business for you, you can focus on areas that matters.

Think that the fees are too high? Think again.

The cost that you would have spent on setting up a large and efficient logistics machine is no small investment. On top of that, the amount of advertising you will invest is minimal as they are all congregated in a single platform which Amazon have spent YEARS building. In short, your customers are already on Amazon.

It is an absolute privilege to be selling on Amazon as you are paying less labor and administrative cost on the warehousing, shipping and customer service.

Is FBA the right model for you?

If you want to scale your product business fast, then the short answer is yes. However, it depends largely on what kind of products you are selling.

Not every category sells well on Amazon. Hand-made Arts and Crafts and Software are a few categories that I have not seen a strong following on Amazon YET.

For most sellers, FBA is the only smart way forward and if you think FBA is right you, you can get started by researching more about this. Resources, guides and tailored courses like Seth Kniep’s FBA Mastery can equip you with the right knowledge and footing to really get started with your Amazon journey.

2 thoughts on “Top 5 Benefits of Amazon FBA”

  1. I’m not sure about this post. Your premises are well structured, but nevertheless it’s not possible to base things on what strangers might believe. Please clear up some misconceptions, because I think you are a good blogger and I hope to learn more from you!

    1. Hey Shonna,

      Do let me know what are the misconceptions you have spotted. Always looking forward to improving this.

      Cheers!

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