Pros and Cons of Using Fulfillment by Amazon (FBA) To Manage Your Shipping Online

Amazon is the largest e-commerce retailer out there. And with its status, comes challenges with shipping. However, Amazon has sorted out this problem by introducing Fulfillment By Amazon (FBA) to enable retailers and businesses to manage their shipping efficiently. Fulfillment By Amazon allows businesses and retailers to sell their products without worrying about shipping. Amazon takes care of all aspects of shipping, such as picking, packing and dispatching the products to clients. FBA has enabled many retailers and businesses to grow their e-commerce websites quickly and compete in the ever competitive online marketplace. Here are the benefits that come with Fulfillment By Amazon (FBA):

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Pros

• FBA offers a cost-effective and easy way to manage your shipping online

The shipping process (picking, packaging, and shipping) can be a daunting task for any online retail business, especially when shipping a ton of orders every day. Amazon does all that for you. They locate the order in the warehouse, print the shipping label, pack the order and dispatch it to the customer. This allows you to concentrate on other aspects of your online business that bring greater profitability. Also, the shipping is much cheaper when compared to using your shipping carrier.

• Fulfillment By Amazon helps manage your shipping online by simplifying the return process



Product return happens time after time due to damaged merchandise, shipping to the wrong address, shipping the wrong product or because the client didn’t just like the product. Product returns can be complicated, especially if you’re selling on numerous channels. And if you don’t have the right shipping software, the challenge can be almost insurmountable. If you subscribe to the FBA, Amazon manages all the return procedures and processes that include initiating communication with the customer, issuing an RMA, inspecting the returned product on arrival, initiating a refund process, or shipping an alternative product and much more.

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• FBA comes with significant benefits to your e-commerce websites' customers

If you’re an Amazon retailer and you sign up for the Fulfillment By Amazon program, you get Amazon Prime automatically. This means that your Amazon Prime customers qualify for two-day free shipping. Other customers also benefit because they can get free shipping if they order products worth over $25.

• FBA leads to increased visibility for your e-commerce website

If you’re an FBA retailer, you have a higher status on Amazon than other retailers. That means your products are more likely to appear on the first page of search engines compared to other products that are not under the Amazon FBA program.

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Cons

• The fees to manage your shipping online with FBA are expensive

While Amazon does all the heavy lifting for you, it comes with a catch: You have to pay for it. The charges include monthly storage, pick-and-pack, order fulfillment, as well as weight handling. These fees can add up your shipping costs.

• Split shipment management can present problems when looking to manage your shipping online with FBA

Split shipment management is a common problem faced by retailers using Fulfillment By Amazon program, especially when shipping to numerous locations. While fulfillment centers shorten delivery time, they’re time-consuming, inconvenient and costly. They can seriously erode your profit margins.

• You are limited to the marketing capabilities you can implement on your e-commerce websites


The good part about physical stores is that they can physically interact with customers and know what they need. When operating an e-commerce business, you have to build a formidable brand before customers can develop faith in your products. When you use FBA, you miss on the opportunity to interact with your customers, as Amazon does everything for you.

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Conclusion

It’s important to know the pros and cons of Fulfillment By Amazon. You must also know how these pros and cons can impact your online business. So if you know your online business is going to benefit significantly from FBA, then go ahead and implement it.

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