Before I get to the 4 key benefits of Amazon FBA, let’s take a step back for a second. Fulfillment by Amazon offers ANY entrepreneurially inclined person the opportunity to start their first business.
Amazingly, all you need in order to do this is a wifi connection and a small amount of money…probably less than you think!
Yup, you don’t need to be an inventor, you don’t need an existing customer base, you don’t even really need a product idea to get started. But you probably know that already!
If not, I wrote a post about the fundamentals of this Amazon FBA business model. You can click here to read that post.
Now that you understand the basic mechanics of the business model, I want to pause and highlight 4 key benefits of Amazon FBA.
Benefit #1: You Get to List a Product on Amazon
I know, “paging Captain Obvious…”
But it really is so important that it bears mentioning. I can’t stress enough how great of an advantage this is. Think of it as the online equivalent of putting a product on the shelf at every single Walmart in the United States.
Just like millions of people walk into a Walmart every day, so too will millions of people have the opportunity to view your product page on Amazon every single day. A recent study showed that almost 9 in 10 shoppers price check on Amazon before they buy anything at all!
It is not that easy to put something on the shelf at every Walmart…and it could not be any easier to get something on Amazon’s digital shelf. That’s the beauty of the Amazon FBA business model.
Thank you, internet.
Benefit #2: Amazon Prime
Once somebody purchases your product, Amazon delivers it for you. You don’t have to think about it. Oh, and every single product that utilizes Amazon FBA is automatically eligible for Amazon’s ultra-fast and ultra-popular shipping service, Amazon Prime. This is not to be understated, as over 100 million U.S. customers are enrolled in Amazon Prime. Amazon disrupted the world of eCommerce when they rolled out 2-day shipping with Prime (and…again, later, when they rolled out next day delivery). People LOVE fast shipping, and it is just baked right into the FBA business model. Do you filter by “Prime Only” when shopping on Amazon? I know I do!
Benefit #3: Amazon Handles 99% of Customer Service
When you enroll in FBA, Amazon handles virtually all customer support. That includes refunds, returns, and all customer inquiries. Other than a very small number of exceptions, Amazon does this completely free of charge. It is in their best interest to have a unified customer service experience for everyone shopping on Amazon, so it’s just one more thing you don’t have to worry about! This frees up your time to focus on marketing and growing your business.
Benefit #4: Amazon Seller Central
Amazon Seller Central is your business’ online hub. It automatically tracks inventory, sales, and advertising data for you. All you have to do is log in and download the reports. You can also connect third-party apps through Seller Central to automate certain business processes, such as buyer-seller messaging, which can be used to request feedback (reviews) from your customers. It is also the centralized location from which you will run advertising campaigns, create coupons and promotions, and manage your sales tax remittance strategy. Essentially, it’s a free business intelligence tool. Just another sweet benefit of Amazon FBA.
OK, that is a lot of benefits. To review:
Are you ready to get started with your Amazon selling career? Feel like you need some more info? Up next, we will take a deep dive into how to choose a product to sell on Amazon.