If you are looking to build a business online you might be considering Amazon FBA services. Many business owners look to Amazon’s fulfillment service because they feel it is the simplest way to enter the ecommerce market and you can let Amazon do the hard work for you.
Amazon FBA and alternatives allow you to easily automate logistics and shipping, get discounted shipping rates, easily manage the returns, get excellent and reputable customer service from Amazon while potentially having unlimited storage space for your products, and facilitate instant delivery. Before you get started these are some considerations you need to understand before becoming an Amazon FBA Seller.
How Do You Sell Products On Amazon?
The steps below explain how you sell items on Amazon.
Forward Your Products to Amazon
Amazon has more than 100 warehouses across the states. Some warehouses cover more than a million square feet. You will let them know which products you’re shipping, and they will inform you which warehouses are easily shipping your products.
Once Amazon receives and accepts your products, they will sort it out and add it to their inventory. Your products are then stored in their warehouses. In the event that something goes wrong in the warehouse, Amazon will compensate you for the damage.
Get Complete Order Fulfillment
When a customer places an order for one of your products, Amazon picks, packs, ships, and tracks the order for you. An Amazon warehouse worker or robot picks up your product from storage, packs it in a box, and ships it to the customer. Moreover, once the customer receives your product, Amazon follows up to make sure the sellers are satisfied with the shipment.
Amazon Handles Returns and Refunds
Amazon assists in handling returns, refunds, and supporting conveniently handling return and refund processes that its customers have grown accustomed to.
Disadvantages To Amazon FBA
Even though many sellers choose Amazon as their business choice, the pricing model is important to many. The FBA method costs a lot of money. Amazon charges both storage fees and fulfillment fees along with long-term storage fees.
In addition, with the easy return policy, you might see more returns. Amazon has strict guidelines on preparing and shipping your items, which can be difficult for many sellers. With multiple channels, it’s hard to keep inventory changes in sync and up to date.
In addition, every state in the United States has different regulations for sales tax collection, which makes it difficult to automate the tax rules without an agent. Importantly, to increase efficiency, Amazon gives you the option of commingling your products with the same products from other buyers.
While Amazon does its best to vet its sellers there is a chance that some sellers who carry similar products to you may have counterfeit or damaged products, which can affect your reputation. In all cases, the sellers have no way to contact a customer after the sale. This prevents you, the seller, from remarketing to anyone who buys your products.
Amazon FBA Cost
Amazon pricing can be confusing considering the Amazon FBA price model.
Below are some fees charged to Amazon sellers:
- Referral fees
- Storage fee for retaining your product in stores
- Completion fees
- Individual per-item fee
- Professional seller monthly subscription fee
- High-volume listing fee
- Rental book service fee
- Closing fee is based on your product
Lack of Customer Information
The worrying concern for all sellers is the seller has no way of knowing who buys their products, but many sellers do not know this before they sign up for Amazon. This is a disadvantage when it comes to creating a marketing list and a better understanding of the customers to develop a better product line.
Professional accounts with storage limits will still have a minimum of 25 cubic feet for standard, over-size, clothing, or footwear inventory. In addition, storage fees would be based on the weight and dimensions of a product. It is calculated using Amazon’s information about the weight and dimensions of the product.
You Might Not Qualify For Prime Shipping
Prime members have two-day fast shipping and all Amazon.com customers can get free shipping on eligible orders. When you list products for FBA, they are eligible for free shipping.
Only qualified FBA lists appear with the Prime logo, so customers know that Amazon handles packaging, delivery, customer service, and returns, but qualifying for the listing is not available for all sellers.
Storage Fee Increases
Amazon storage fees may increase over time and can change during peak seasons. It’s a good idea to keep this in mind so you aren’t taken by surprise if you are getting charged higher fees.
Amazon Book Sales Have Very Little Profit
Although Amazon offers easy publishing features, most Amazon book sellers make only 1-3% profit per book.
Choosing An FBA Alternative
If you want hands-off with your fulfillment and to retain your customer information, you need a third-party company to support you. If you are at a point where you are selling 100+ packages through your ecommerce site, it’s time to consider a fulfillment center.
Keep reading to see how Print Bind Ship can offer you the same benefits of FBA but at a lower price point and seamlessly synchronizes with your point of sale.
How Print Bind Ship Can Help You Grow
If you are looking for product creation, and premium package design to accompany your digital download product, reduce your costs, increase your sales, and provide the best experience to your customers, we can help.
Printing & Binding Services
Print Bind Ship has over 60 years of professional printing experience. We can handle anything from T-shirt printing to hardcover bookbinding.
Some additional services available are:
- Custom box printing
- Hardcover book printing
- Large format printing
- Promotional materials
- And more!
We ship worldwide daily. Get the same fast shipping you would expect from Amazon FBA from Print Bind Ship – without the additional charges from Amazon.
Managed Inventory and Warehousing
We offer a well-organized inventory and warehouse to avoid stockpiling, dealing with overproduction, keeping your products safe, and warehouse support. With Print Bind Ship you can observe your sales, shipping, and returns right from our online customer portal. If you need help, just give us a call, we’re a Michigan-based fulfillment center with customer support standing by.
Pick & Pack Services
Suppose you are looking to ship multiple products or have a subscription box business, in this case, we can handle your pick and pack services. Simply send us your items and we will combine them and send them to your customers. What’s even better is that we can also provide custom packaging to keep your entire customer experience on brand.
Something is not right with a package? We handle the return! Like Amazon FBA, we make returns easy for your customers. Once the item is shipped back to our warehouse we will inspect for damage and determine whether the item can be returned to inventory or disposed of.
Over 60 Years of Industry Knowledge
We have been in the industry for decades while building long-term relationships and a strong network with our customers and staff. We’ll guide you through the process of handling all your shipping needs and recommend additional services to help grow your business.
Fulfillment Services From Print Bind Ship
Choosing the right fulfillment services for your business should be a top priority. Getting educated about the ins and out of Amazon FBA and other fulfillment options can help you and your business grow!
With Print Bind Ship, you can rest assured you and your business are in good hands. Our dedicated team looks forward to helping your eCommerce business thrive! Give us a call or get an online quote today to get started. To learn more about our fulfillment services click here!
Alternatives to FBA are companies that work similarly to Amazon fulfillment centers in that they warehouse inventory, pack and ship items, and handle returns.
FBA stands for fulfilled by Amazon, meaning Amazon will warehouse and fulfill orders from sellers. FBA stands for fulfilled by merchant, meaning the fulfillment method is done solely by the seller who warehouses and ships orders.
A third-party fulfillment service will provide you with a safe place to store your inventory and will handle shipping out your orders for you, just like FBA. When you use a 3rd party FBA, your products will be listed as FMB, however you will have a third-party ship the orders for you instead of doing it yourself.