Having been a Fulfillment by Amazon seller since 2010, I have experienced many reasons why I highly recommend this business model to many other sellers. However, it would not be fair to those looking to get started with FBA if I failed to talk about so of my largest frustrations with the problems associated with selling here as well.
Amazon’s A to Z Guarantee
While this no hassle return policy is one of the driving forces behind the success of the Fulfillment by Amazon program, it does enable hassles for seller when dealing with difficult buyers. This program enables buyers to return any product for any reason within a period of time set by Amazon. If they choose to return the item for any reason (including stating they simply no longer want it) they will be refunded in full for the amount they paid for the item with the original shipping cost. To the seller this means they will take the amount of that sale from your profits when the item is returned. If the item is resalable, it will be restocked and offered for sale again. On a positive note, if the item returned is not in the condition was sold in; Amazon will refund you the seller the sale price and destroy the item.
Low Balling Sellers
The page rank for a given item is based on the lowest total retail price with shipping. Some of the sellers that are either simply trying to rid themselves of a few items or those that have no real concern for moving inventory even if it means taking a loss of the sale of that item. As a result there are many issues where the lowest prices offered for your item are less than you could afford to sell it as an FBA seller. A couple things to remember about this is that FBA sellers get to list their items with the fixed shipping price included and match page rank with lower retail prices and that each seller can create their own storefront with Amazon Webstore that will help generate more sales from your customers at your own prices.
Amazon is a reliable company that has a global reputation of having some of the best products ever whether it is a glass phial or a helium container, which is quite popular these days and you can have some of the best by just going through an In-Depth Helium-10 Review online.
Higher Minimum Prices
Being a Fulfillment by Amazon seller comes with a series of fixed costs per item as well as a commission of the retail price. You also have to pay for the outbound shipping weight cost when the item sells. With these additional costs, the minimum retail price of any given item will be higher than it could be sold for in other platforms. In all, buyers know the value of purchasing an item shipped through FBA and are willing to pay a little more for those items. Being aware of these issues along with learning the best practices of selling on Amazon will lead to a successful business.