Business

How FBA Works and What are the Considerations Before You Join FBA?

Enormous numbers of medium and small-sized business, as well as business start-ups, reach countless shoppers through Amazon every year, and in 2018 itself 58% of Amazon’s yearly gross sales accounted for third-party marketplace sellers. One of the fundamental reasons for shoppers coming to amazon’s marketplace is because of the provision of free shipping. Anyone can get the advantage of reaching to maximum customers through this vast business platform directly or through third-party sellers such as Clearitfba freight forwarding. As for the US, the basic reason for shoppers choosing the marketplace is free and discounted shipping opportunities.

The free or discounted shipping obviously convince a shopper to make a purchase, but going beyond that, the shoppers get further motivated to make another purchase because of the entire delivery experience in Amazon marketplace. As per a study, 85% of Amazon customers said that they may never be interested to get back to a specific brand once they get a poor delivery experience. Based on this finding, Amazon has developed its own fulfilment strategy which is Fulfilment by Amazon or FBA. The goal of FBA is to guarantee the sellers accurate, quick and affordable shipping of goods for their sellers. In a very simple understanding, FBA is like “you sell and FBA ships.”

The process of Amazon’s FBA comprises the systems where you send your goods to Amazon’s fulfilment centres to store and after Amazon receives your goods, you can monitor your goods through their system of tracking. When your customers order your goods through Amazon’s or any other eCommerce digital marketing sites, Amazon picks your goods and packs the ordered items. Then Amazon ships the ordered goods to the customers by their preferred methods and provides the information tracking system to the customers. Amazon takes care of the customers’ service and management of your goods.

In return, Amazon charges various fees for their services but the advantages in comparison to the fees are abundant. The primary advantage amazon provides you is the ability through which you can grow your business by reaching more customers. Secondly, amazon provides free 2-day shipping through which you increase your sales and gain surplus profit. Some of the remarkable benefits you have by using the FBA are discounted shipping rates, high-level and perfect customer service, and timely return management. Above all, you can also use FBA for your own digital eCommerce where your customers can use several flexible shipping options.

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