Amazon FBA – Pros & Cons

What is Amazon FBA?

Sellers send their products to Amazon, who warehouses everything and then processes all of the orders as they come in. As long as you handle the sales and make sure Amazon stays stocked with your products, the rest is done for you.

PROS:

Quick Delivery – For anyone who has ever shopped from Amazon you would know how quick they are with their delivery. Since your products are already in the warehouse they can be delivered ASAP.
Product Exposure – Amazon have millions of customers both local and worldwide so you have a lot more exposure to your products.
Omnichannel Fulfillment – this is where Amazon FBA allows you to not only sell on Amazon but platforms such as eBay.

CONS:

Cost – If you are just getting started and only have a small budget you will have to be really careful as to which product you pick to sell on Amazon. There are a lot of charges which add up. The upfront cost of the buying the products from supplier, packaging and shipping to Amazon.
Amazon Fee – Amazon will charge you for long term storage if your stock is not moving fast enough and sitting in their warehouse. There is also a monthly fee that Amazon charge.
Product Packaging – Before you even get the products to be Amazon warehouse. You will need to ensure they are packaged and labelled as per Amazon FBA requirements.