One of the biggest and most well-known e-commerce platforms in the world is Amazon. Amazon receives more than 5.7 billion visitors every month from all across the globe, according to the official data. It demonstrates that Amazon is a really international marketplace that is luring shoppers and merchants from international territories.
Yet, ‘is Amazon FBA worth it?’ is a common question associated with Amazon. Many people want to start selling their products on Amazon, but they are not sure if it is worth the effort. Therefore, this article aims to explain the working of Amazon FBA and some of its major benefits to determine if you should become an Amazon seller.
Potential Income with Amazon FBA
In 2020, Amazon’s revenue was $386 billion. Third-party sellers generated around 54% of the overall income, and 92% of them utilized Fulfillment by Amazon (FBA) to market and sell their goods. Similar to how companies are increasingly using Amazon FBA to sell their items, official figures show this trend.
It seems to sense that you would want to know how much you might possibly sell by selling on Amazon. About half of Amazon sellers make $5000 per month, while 25% make $25,000 per month. In a similar fashion, 20% of Amazon merchants have made over $1 million in lifetime sales. Whereas about 70% of Amazon sellers have achieved profit margins of more than 10%, so overall, the profit margins are also extremely excellent.
These statistics point to the fact that you can make massive profits with Amazon. Therefore, the short answer to the question that ‘is Amazon FBA worth it?’ is that you should definitely use this massively popular ecommerce platform to establish a successful online business.
Let’s look at the benefits of Amazon FBA in detail.
Benefits of Amazon FBA
Following are the major benefits of using Amazon FBA:
- Affordability
The most apparent and important advantage of Amazon FBA is that you will be able to provide your products to the consumers at a reasonable price. Less shipping charges mean you will be able to make more money.
The fact that you won’t have to pay money for shipping goods like carton boxes and tapes is another advantage of employing Amazon FBA’s service. Additionally, you won’t need to bother about recruiting personnel to deal with packing and shipment.
Along with the option of worldwide delivery, Amazon also offers its Prime members the choice of 2-day rapid shipping. Such trustworthy solutions make it simple to extend your company into other markets since Amazon’s professionals will take care of the shipping and customs requirements, saving you the time and hassle of having to manage them yourself.
- Huge Audience
The most well-known e-commerce site, Amazon, receives roughly 3 billion visitors each month. More than 300 million Prime members use it globally. Listing items on Amazon gives small, and solo entrepreneurs access to its sizable and devoted client base.
- Reliable Refund Policy
Online retailers must have a comprehensive return and refund policy since online customers like ecommerce platforms that provide them comfort and security. Therefore, it is crucial for businesses to appropriately process requests for returns and refunds. Nevertheless, responding to such requests might take a long time.
Because the Amazon team is made up of professionals and specialists who can manage everything from beginning to end, including creating the shipping labels and receiving the returned goods, you should choose Amazon FBA.
- Inventory
You don’t need to hire a warehouse or turn your home into a storage area since Amazon offers excellent storage solutions. Once you sign up for Amazon FBA, Amazon will be in charge of maintaining the security of your items. The good news is that Amazon FBA provides its FBA services for both small and large-scale enterprises. Thus the quantity of the inventory is irrelevant.
Additionally, if your sales volume is really high, Amazon will provide you with limitless storage space, enabling you to expand your product selection and increase sales. Amazon FBA will also be able to monitor surplus inventory and control how long it has been sitting in a company’s area for businesses that do not sell many items.
- Customer Support
Customer service may be a very demanding job, particularly for small organizations with just one to three staff. You will appreciate one of the Amazon FBA perks that offer effective customer service management in such a circumstance. It guarantees that clients may speak with Amazon representatives directly by chat, phone, or email for assistance with any aspect of the online purchasing process.
Conclusion
All of these benefits of using Amazon FBA show that it is definitely worth it. If you want to establish a successful ecommerce business, using Amazon FBA is one of the most reliable options currently available in the industry.
