5 Pros and Cons to Making Money on Amazon

When it comes to product searches, Amazon beats Google. Around 52% of product searches start on Amazon while only 34% begin on Google. This is just one proof that many consumers trust and prefer buying on Amazon. For a seller who is looking to expand into e-commerce, putting up your listing on Amazon is highly considerable. Here is a list of the pros of selling on Amazon and some cons that comes with it.

1. Shipping is fast. Signing up for Amazon FBA automatically qualifies you for prime shipping. It is a great advantage since all Amazon Prime members are entitled to free two-day shipping for FBA products. You also don’t need to pay any additional fee and are charged at the same rate regardless of whether the buyer orders through Prime or regular shipping.

2. No fulfillment center or shipping partner is required. There is no need to worry about shipping when you sign up with Amazon FBA. Amazon will take care of it all and all you have to do is send them your products in good condition. There is also no need to invest in a fulfillment center since Amazon has several fulfillments around the United States. You can then rest assured that your products will reach your customers.

3. You can sell whenever and wherever. Did you know that when you enroll in FBA you can sell anywhere? You are not restricted to just selling on Amazon and can fulfill orders you receive through other channels with the use of FBA. Your customers can also enjoy one day, two days, or standard shipping time. Automate the process by using the ByStand Amazon FBA Shipping app.

But looking on the bright side alone will not help you and your business. You also need to look on the bad side of selling in Amazon and consider it carefully as it can greatly impact your strategy and pricing. Amazon FBA provides several benefits; however, there are also downsides that everyone should be aware of.

4. There are fees. A storage fee is charged by Amazon depending on the space occupied by your product and how long they’ll stay in the fulfillment center. You will also pay per unit fulfillment fees and the cost the company charges for each order processed through the FBA service. A monthly fee must also be paid for the privilege of having a seller account on Amazon. After adding all these up, you need to calculate how much revenue you need to generate to offset the cost and see a reasonable profit.

5. Prep is a must. It is included in Amazon’s policy that sellers need to prep the product in a certain manner if you want them to be kept in Amazon’s warehouses. This can be time-consuming and costly but there is not much you can do since you are adhering to the Amazon FBA rules. Your options are to either prepare and pack your items or let Amazon do it for you for a fee.

source: https://www.buyboxexperts.com/amazon-fba-business-model-explained/

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