Are you starting a new business and trying to find a way to do the storage, packaging, and shipping so that you can focus on business growth? Are you particularly searching for “Amazon FBA for beginners” in Google. Then in this article, we will share our insights.
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What is FBA? How Does It Work?
Every business, whether new, growing, or settled, wishes to become stronger and more profitable for a long time. There are so many things to do to run a business. Ups and downs are friends that show a business is running. The founder and management should implement a proper management system and learn from mistakes to find a fixed operation procedure.
It takes time to find a proper management system for new businesses that need to fight in a situation where there are already so many competitors. Beginners need something to help them do the operations so that they can focus on the growth of the business. One of the answers is Amazon FBA for beginners.
FBA means Fulfillment by Amazon, while the other system is FBM, Fulfillment by Merchant. FBM is a system where everything will be done by the merchant, while FBA means the business owner or management could focus on the business because things like storage, packaging, and shipping are done by Amazon in the fulfillment center. As a big company, Amazon prepared with extra-large storage. As they are also available for many smaller businesses or companies to join with, they open the FBA programs.
FBA allows businesses to ask Amazon to store their product. When there are requests for the product, Amazon will also do the package and shipping. This will help the business to cut the fee, energy, and time of storage renting, packaging, and shipping. As the work is already done by Amazon, the business could focus on other work such as promotion, innovation, research, production, and management.
Pros and Cons of FBA
FBA could help beginners to run their business and focus on growing. It is a choice, so to help businesses consider before choosing this system, let’s find the pros and cons of FBA.
Pros
Amazon is a big company that has been running for a long time. People trust Amazon for its products, efficiency, and shipping. FBA will help beginners to get the trust of the customers as people know Amazon. The name acts as a guarantee of fast and safe packaging and shipping.
Amazon also has a system to make storage, packaging, and shipping run efficiently. This will guarantee fast shipping of the beginner’s product. Amazon also already has a relationship with the shipping company. This also gives benefit to the beginners, as the relationship opens the ability to offer free or discounted shipping to customers. However, it’s important to note that Amazon charges FBA fees, which include handling and shipping, and these fees are paid by the merchant—not Amazon.
As the storage, packaging, and shipping are done by Amazon, the business owner could reduce the staff and save money. Amazon also offers inventory and customer services. Business owners could focus on other activities to run their business.
Cons
FBA allows business owners to leave Amazon to do the storage in the fulfillment center. As Amazon could cooperate with more than one company for the same product, similar products will be kept near one another. There is a possibility that products may be mixed up, especially if the business chooses the stickerless, commingled inventory system. This situation could be discussed before agreeing to take the FBA.
FBA is not a free offer. The business owner should pay the FBA fee. When the products have high demand, the FBA fee might not be a problem. But, if the beginners still grow the market and the sales are not that high, the profit might be lower than the FBA fee which might be costly.
Some companies have logos and design special packaging which might not be able to be used when joining the FBA program. As the package is Amazon, the packaging should comply with Amazon’s packaging rules. However, for some programs like Brand Registry, Seller Fulfilled Prime, or Multi-Channel Fulfillment, custom packaging might still be an option. For a new business that cares about its brand, this might be challenging.
Shipazon: Supporting Amazon FBA Sellers
Shipazon is a company that has a large warehouse located in a strategic location near SeaTac Airport, Port of Tacoma, and Port of Seattle. We have full equipment for storage, packaging, and shipping to fulfill your needs to help grow your business.
Ultimately, we assist businesses that want to join Amazon FBA. Our strategic location near major ports and airports allows Shipazon to offer fast shipping by land or air through trusted carriers like USPS, UPS, and FedEx. This makes it easier for your business to manage fulfillment and scale efficiently. Amazon FBA for beginners might be the door to raise new business so that the owner could focus on the growth. There are already many businesses running smoothly with this method, yours could be the next one. Ship Smarter, Store Better with Shipazon!