Did you know Amazon is the leading ecommerce marketplace in the United States, with net sales peaking close to 386 billion US dollars in 2020?
The proven business model and enhanced customer demand are making this platform highly desirable among investors. As such, even the smallest of businesses are planning to invest in Amazon.
Operating an e-comm business is not all fun and games. From packaging to shipping to returns, the whole business process can oftentimes become overwhelming.
However, Amazon – being the giant that it is – offers a business model that caters to the needs of ecommerce business owners and brands.
Amazon FBA helps you with the daunting procedure of getting your orders shipped to your customers. Continue reading to learn how FBA might be the best business model to scale your online sales.
What is Amazon FBA?
With more and more customers flocking to shop online, Amazon is becoming a preference for entrepreneurs and brand owners.
That means a growing number of investors are turning to Amazon. As such, Amazon is upgrading its services to meet the needs of customers and retailers alike.
Fulfillment By Amazon (FBA) is just another service by Amazon that provides storage, packaging, and shipping support to online sellers.
But how does it work?
The procedure allows ecommerce business owners to ship their goods to the Amazon fulfillment center.
The merchandise of sellers is safely stacked in warehouses. As soon as a customer places an order, Amazon workers prepare, pack, and ship the items to the desired location.
Of course, Amazon charges a fee for it. But what you get in return is convenient, efficient, and effortless product delivery.
What’s more, the service is available 24/7, so you won’t need to worry about the time of order placement.
Benefits of Using FBA Services
Though the pandemic was unexpected and shook the world, it has helped online businesses grow exponentially.
Recent stats show that during the COVID-19, consumer trends shifted dramatically, and people around the globe started purchasing online.
What does this mean? More business opportunities for online sellers. Many retailers seek ways to speed up their delivery process and make it more efficient to satisfy their customers and build a roster of loyal clients.
Here’s how Amazon FBA helps online sellers.
Convenient Shipping and Logistics
Amazon does it all for you: preparing, packaging, customer service, and shipping the products to your customers.
You only need to keep tabs on your products’ listings (are they stocked or not?), and Amazon does the rest for you.
Amazon’s Customer Service Management
Amazon offers 24/7 customer service management. Sellers use the service to handle returns, refunds, and inquiries.
You can also utilize this platform to keep track of your customer needs and route your services through a single platform.
Return Management
Returns and refunds are yet another hectic part of online businesses. With more orders, there will naturally be more returns and refunds. Amazon Fulfillment, however, handles it all for you. As a result, that big weight is lifted off your shoulders.
Quicker Shipping & Delivery Speeds
Data shows that nothing reduces your customer retention rate like a late delivery. In fact, studies show that 69% of customers are less likely to shop with a retailer in the future if a product gets delivered after two to three days of the order being placed.
So, it’s safe to say that quicker delivery is another crucial aspect to increase your sales and earn customers.
Here, again, Fulfillment by Amazon has you covered.
The products in FBA earn a prime badge. In other words, they are entitled to quick delivery and free shipping (to the customer). More customers purchase a “Prime” product than a product that does not hold a Prime badge. Additionally, FBA sellers earn a large percentage of Amazon’s highly sought-after Buy Box.
Another benefit? You won’t pay for premium shipping – it’s included in the service.
Subsidized Shipping Fee
Amazon does not offer FBA services for free; that’s one thing. But it does offer a reduced shipping rate; that’s another thing.
Being a global giant, Amazon has a relationship with shipping companies. So, when you utilize the FBA service, you’ll automatically pay less than you would’ve paid if you weren’t using the service.
Therefore, even though you’re paying a fee, it’s cheaper than managing the delivery process on your own.
Amazon’s Name Associated With Products
Data shows that 89% of buyers are more likely to purchase products from Amazon than any other platform. The trust factor is huge.
Apparently, more people trust Amazon products than other brands. If you’re utilizing FBA service, your products will have Amazon’s name associated with it.
This is a quality guarantee that most customers appreciate, making them prone to prioritize one seller over another.
More Storage Potential for Bigger Inventories
Have too many products and no space to store them? Amazon Fulfillment will do the job for you.
It’s pretty obvious that you’ll need a warehouse or a rented space for larger batches of inventory. But with FBA, you have (basically) unlimited storage space.
Are You Ready to Get Started?
With countless benefits, FBA takes much of the strain away. If you’re planning to utilize this service, you can make it easier with Elite Automation.
The service grows clients their own Amazon store, even from scratch, with their automated Amazon FBA.
Whether you’re an experienced seller or a newbie, the service helps you create a lucrative store from scratch or boost sales on your existing store.
The Elite team manages your products, inventory, sales, packing and prepping, and customer service. In other words, it monitors and scales your Amazon store entirely.
So you can sit back and collect profits while Elite Automation does all the work for you.
Wrapping Up
With more investors dashing to Amazon to grow their business, the competition is getting fierce day by day.
To outpace your competitors in business, you need a solid business strategy, and the Amazon FBA business model is hard to beat.
Preparing, packaging, and delivering the products on time is critical to earn your customers’ trust and scale your business eventually.
Amazon FBA offers sellers a new opportunity with reasonable costs and handles their needs. As a result, sellers have a chance to grow their business and reach a new wider audience.
