Advantages And Challenges Of FBA Shipping

FBA Shipping, is a service that sends FBA Shipping its online merchants and customers. It permits companies to keep their inventory in the warehouses of Amazon and outsource the shipping, returns as well as customer service for these products to the company. This service has, however, become quite popular with most of the online retailers because of its many advantages. But as it is with every business model, it has its own fair share of difficulties.

Advantages of FBA Shipping

Prime Eligibility

FBA Shipping has one major advantage which is that all the products being sold become eligible for Amazon Prime. This means that Prime members when ordering certain items do not have to pay delivery charges and accepting their order barely takes more than 2 days. This is likely to boost your sales and conversion rate to a significant extent.

Hands-Free Operation

Utilizing FBA Shipping means that you won’t be bothered with the management of any inventory including warehousing order packing and shipping. These are all fully managed by the company and thus you are left with other parts of the business.

Enhanced Customer Experience

As you may know, Amazon is among the best when it comes to customer care. The customers using this service are also served very well and hence satisfied, for instance, easy returns and faster shipping of items is an added advantage.

Competitive Shipping Costs

Due to the nature of transportation and manufacturer agreements, Amazon in fact manages to provide lesser charge in transporting the items than what can be provided by an individual merchant.

Challenges of FBA Shipping

High Fees

FBA Shipping comes with many positive aspects; however, it also comes with high fees, and these fees can take a toll on your profit, especially if you’ve not been very cautious about how you price your goods.

Limited Control

The case is different with FBA Shipping, where KBX has to submit some rights concerning its brand or product. For instance, thank you letters or different types of packaging materials cannot be enclosed or used, respectively, because Amazon stores, use them for the purpose of storing and sending KBX products.

Inventory Management

Managing stock in different fulfillment centers is another hard task. When a seller is out of stock in one region and has an alternative region with plenty of stock, Amazon may still have the product active and say ‘out of stock’ to customers leading to customer satisfaction)._

Conclusion and Recommendation

It is safe to say that although FBA Shipping has substantial advantages like access to the Prime program, no active involvement, better customer satisfaction, reasonable pricing, and international distribution, it nevertheless has some drawbacks, such as follows high costs, poor control, poor inventory management and difficulties in resolving returns and reimbursement.