{"id":6658,"date":"2021-07-16T19:05:02","date_gmt":"2021-07-16T19:05:02","guid":{"rendered":"https:\/\/tacticalarbitrage.spacecolts.com\/is-amazon-fba-worth-it\/"},"modified":"2024-03-26T19:59:27","modified_gmt":"2024-03-26T19:59:27","slug":"is-amazon-fba-worth-it","status":"publish","type":"post","link":"https:\/\/tacticalarbitrage.com\/blog\/is-amazon-fba-worth-it\/","title":{"rendered":"Is Amazon FBA Worth It? 5 Reasons Why Now Is The Best Time To Get In"},"content":{"rendered":"

If you’re new to selling on Amazon, or if you haven’t even begun your journey as an Amazon seller yet, the sign-up process can feel overwhelming. And that’s before you get to all the options you have in front of you.<\/span><\/p>\n

Retail arbitrage, online arbitrage, or wholesale? Books? Grocery? Beauty? Individual plan or professional plan? What does it mean to get ungated?\u00a0<\/span><\/p>\n

Of all the questions we get and we get a lot! There’s one that we hear most frequently: Is Amazon FBA worth it?\u00a0<\/span><\/p>\n

Our answer is a resounding <\/span>yes<\/span><\/i>.<\/span><\/p>\n

Here are five reasons why <\/span>now<\/span><\/i> is a great time to choose Amazon FBA.\u00a0<\/span><\/p>\n

Why Should You Start Amazon FBA Today? My Top 5 Reasons<\/span><\/h2>\n

You might not be totally convinced if Amazon FBA is worth it nowadays.\u00a0<\/span><\/p>\n

I get it, it almost sounds too good to be true, but there are so many reasons to seriously consider it.\u00a0<\/span><\/p>\n

But why is now the perfect time to start selling on Amazon FBA?<\/span><\/p>\n

1.| There are more online shoppers than ever before.<\/span><\/h3>\n

Global e-commerce continues to grow exponentially, and Amazon continues to dominate the market. Digital buyers increased from 1.66 billion to 2.14 billion between 2016 and 2021.<\/span><\/p>\n

Meanwhile, <\/span>Amazon has a 45% share of the US e-commerce market<\/span><\/a>, Amazon\u2019s quarterly net sales recently topped $125 billion, and on average small businesses sell 4,000 items per minute on Amazon.\u00a0<\/span><\/p>\n

Don\u2019t you want in on all that action?\u00a0<\/span><\/p>\n

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2.| Mobile shopping has overtaken traditional e-commerce for the first time in history<\/span><\/h3>\n

When my wife tells me she needs more toilet paper, I immediately pull my phone out and order it from Amazon. It\u2019s quick, easy, and I don\u2019t have to be around my computer all of the time.<\/span><\/p>\n

This is the power of mobile shopping. I can buy things on the fly and not have to worry about remembering it later.<\/span><\/p>\n

When you sell on Amazon Fulfillment by Amazon (FBA), you have the ability to be in the pockets (literally) of millions of people in the USA. If you have the products in stock, they can buy it with just a few taps and swipes on their phone.<\/span><\/p>\n

3.| Amazon FBA helps online retailers scale quickly and efficiently<\/span><\/h3>\n

So you now know why Amazon is amazing, but let\u2019s take a moment to dive a little deeper into the benefits of <\/span>opening an Amazon FBA seller account<\/span><\/a>.<\/span><\/p>\n

Who wants to store a bunch of inventory in their garage or, worse, open up their own warehouse? Amazon FBA is the best way to grow your business quickly without having to pay for more real estate, which is going up all over the US.<\/span><\/p>\n

Since Amazon already has the infrastructure in place, you can piggyback on their systems to make your life even easier. You ship the items to Amazon and they handle the rest.\u00a0<\/span><\/p>\n

4.| Amazon FBA helps online retailers reach more potential customers<\/span><\/h3>\n

When you use Amazon FBA, you get special access to Prime members. And this is an audience of customers who LOVE to buy items on Amazon. The latest research shows that there are 150 million active Amazon Prime members who each spend over $1,000 annually on the platform.<\/span><\/p>\n

More than double what their non-Prime counterparts spend.\u00a0<\/span><\/p>\n

One in three Americans has a Prime membership, and 20% of Amazon Prime members shop the platform several times a week.<\/span><\/p>\n

It\u2019s a no brainer to want access to this group of customers. And using Amazon FBA gives you that access by allowing you to sell your items with Prime shipping.<\/span><\/p>\n

5.| Amazon FBA guarantees the customer experience<\/span><\/h3>\n

This is a big one. When clicking the Buy Box, most online shoppers assume they\u2019re buying from Amazon and expect the Amazon experience. 89% of online shoppers say they trust Amazon and choose it more than other online businesses.<\/span><\/p>\n

Why reinvent the wheel?<\/span><\/p>\n

When you use Amazon FBA, Amazon handles the customer service for you. This makes the headaches go away and gives you time to spend on growing your business.\u00a0<\/span><\/p>\n

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Overview Of Amazon FBA<\/span><\/h2>\n

At its most basic, FBA, also known as Fulfillment by Amazon, is an optional warehousing and delivery service that Amazon provides for its third-party sellers.<\/span><\/p>\n

If you choose to use Amazon FBA, you get the benefit of Prime Delivery, an automated workflow, Amazon marketing services (and their excellent customer service), reduced shipping rates, and storage.\u00a0<\/span><\/p>\n

In other words, once you’ve purchased your products and shipped them to a regional warehouse, Amazon will handle the rest, from customer questions to packing and shipping your orders and managing returns and exchanges.\u00a0<\/span><\/p>\n

At this point, Amazon FBA might seem like a no-brainer. Of course, the flip side to this convenient program is higher Amazon seller fees, including fulfillment fees, pick and pack fees, referral fees, and long-term storage fees.\u00a0<\/span><\/p>\n

Still, even with the increased fees, most online sellers find that Amazon FBA is a great fit for their business model, enabling them to scale their e-commerce business more quickly while meeting customer expectations.\u00a0<\/span><\/p>\n

Amazon FBA Vs Amazon FBM<\/span><\/h2>\n

Perhaps the best way to explain Amazon FBA is to compare it to your other alternative: Amazon FBM, or Fulfilled by Merchant.\u00a0<\/span><\/p>\n

While both programs provide online business owners with a proven way to sell profitable products on a platform with quality traffic, there are some notable differences between the two.<\/span><\/p>\n

Let\u2019s break down the benefits and drawbacks of each program before we explain why we think Amazon FBA is the best choice for most online sellers.\u00a0<\/span><\/p>\n

Amazon FBM<\/span><\/h3>\n

Fulfillment by Merchant (Amazon FBM) is a method of selling and fulfilling online orders yourself. In other words, you\u2019ll have to store and manage every product you list, and you\u2019ll be responsible for shipping and customer returns for every unit you sell.<\/span><\/p>\n

While some Amazon FBM sellers partner with a third-party fulfillment center to manage their inventory, most pack, ship and handle customer returns themselves.\u00a0<\/span><\/p>\n

Why Do Sellers Choose Amazon FBM?\u00a0<\/span><\/h3>\n

Still, even with all the responsibilities, there are some legitimate reasons to choose Amazon FBM. First, listing products on FBM is faster and easier than listing on Amazon FBA.<\/span><\/p>\n

Using the Fulfilled by Merchant program can be a great way to get started with selling on Amazon without investing a lot of time or resources into inventory. It\u2019s a low-risk way to learn the basics of e-commerce, and there are fewer fees.\u00a0<\/span><\/p>\n

In addition, some sellers choose to list items through Amazon FBM when they want to have more control over their inventory.<\/span><\/p>\n

For example, an online retailer might choose FBM for items that are rare, delicate, that have a high rank, or that are selling out faster than they can send shipments to Amazon\u2019s warehouses.<\/span><\/p>\n

Many sellers who primarily use Amazon FBA will <\/span>also <\/span><\/i>occasionally list products through FBM under these circumstances.\u00a0<\/span><\/p>\n

Pros And Cons Of Amazon FBM<\/span><\/h3>\n

Pros:\u00a0<\/span><\/h4>\n