Are you a seller on Amazon wondering if FBA (Fulfillment by Amazon) is worth it? There are many different ways that FBA can help your business increase its sales. To help you navigate this decision, we have compiled a comprehensive list of why you should be selling through Amazon FBA!
Storage and Warehousing
When working with FBA, you will ship your products to their warehouses rather than storing them at your facility. You can even ship products directly from your manufacturer! Once the shipment arrives at a FBA facility, they will receive the stock and scan it into their system. After this, whenever a customer orders your product on Amazon, an FBA worker will pick, pack, and ship that order! It completely removes the hassle of having to fulfill every single order yourself! Without needing to spend the time preparing every order, you can focus more on growing your brand and other important activities. It also means you don’t have to have a ton of storage space at your own warehouse to store all the stock.
Faster Delivery Times
What is a major selling factor for almost everyone who makes purchases online? Delivery time. How long will the order take to be delivered? With Amazon FBA, your listings can qualify for Prime and it is common to see same-day delivery! This is due to Amazon moving your inventory around the country using its vast network of fulfillment centers. As of January 2024, there are 110 active FBA fulfillment centers around the United States. Delivery time is a major factor in the customers decision to buy a product, so ensuring that your listing has the fastest delivery time is an important step in gaining more sales and having satisfied customers.
Cheaper Shipping Rates
Amazon’s shipping rates vary depending on what product category you sell in, what size the shipping box is, etc. Generally, we see shipping rates up to 50% cheaper than those from UPS, USPS, and FedEx! When you consider that your customers are getting 1 day or same-day delivery with Amazon, it gets even crazier! If your shipping rate is cheaper than your competitors, and has a faster delivery time, the customer will be much more likely to buy your product instead of theirs.
Boosts Your SEO Rankings
When shoppers on Amazon are looking through multiple listings of the same or similar products, they are far more likely to choose one of the first listings they see, and that all depends on your Amazon SEO rankings. Very few buyers on Amazon will get past the first page, so you will want to try your hardest to rank as high as possible. Two very important factors for SEO rankings are keyword optimization and PPC campaigns. However, Amazon’s algorithm also favors FBA sellers as this will provide the customer with a better buying experience. Take advantage of FBA for a boost to your SEO rankings.
Increases Your Conversion Rates with Prime Eligibility
Ever wondered why some listings have a “Prime Eligible” badge and others don’t? Amazon gives this badge to listings that are utilizing FBA. It is standard on Amazon that Prime shipping gets faster delivery times and customers know that when they buy a Prime-eligible product, they are far more likely to have a smooth experience with shipping, delivery, and even if they were to return the item! More than that, a significant number of Amazon buyers won’t even look at a product if it does not have Prime shipping. Why would you buy from a listing where the delivery time is 8 days versus buying from another listing where you can receive the product that same day? Having Prime eligible products will help keep your customers satisfied and encourage them to come back to your store.
Improves Overall Customer Experience
When a customer buys from a Prime-eligible listing, they know they will have a pleasant buying experience. Their shipping will be fast, there won’t be any issues with delivery, and if they need to return the product, the process will be very simple. With FBA, Amazon handles all customer support and returns. For the customer, it is much easier to return an item with 1 click of a button rather than going back and forth with a seller via email.
In conclusion, Amazon FBA is a must for anyone selling on the platform. It will help simplify your business and free up time for you to focus on growing sales rather than stressing about shipping out orders to customers! FBA also provides a better customer experience. Happy and satisfied customers will leave you good reviews and keep coming back to your store.
Comments