Will Fulfillment by Amazon Work Best For Your Business?

Published: Dec 17, 2019

When you are looking to expand their business, there are many different factors to look at. One of the more popular and now more common options is to have an eCommerce option for online sells. When looking at that, we know that items you may ship are a considerable component and something that you should take into consideration. You also look into where you can sell your goods; one big choice is Fulfillment by Amazon, and another option is shipping on your own.

While at first mention, you may automatically feel that this is a great decision. Many people use Amazon every day, and when they see the items you sell, it can be a great opportunity; but how do you know Fulfillment by Amazon is the right decision for your company? 

While it may seem significant on the surface, there are some points that you should consider when making your decision that may have you choose otherwise.

There are some key things that any business should consider when they are looking to see if Fulfillment by Amazon would work for your business and helping you to reach your goals. 

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If you are looking for high positive points of why Fulfillment by Amazon will work for you, here are some great things to remember:

  • You will not have to struggle with any part of the fulfillment process
  • If you want to try out new channels or expand the innovation of the company, it could help
  • You can also free up time and energy by not having to deal with the fulfillment point of the business
  • You will be able to save some money when it comes to dealing with monthly shipping and also warehouse bills that you may have to incur when you are doing it on your own or in a different fashion

These are some great things that you may not think about, and they may be beneficial for you. Although these are some great incentives to ponder on when you are making your decision to use Fulfillment by Amazon, there are also some other things that you want to keep at the forefront of your mind when you are choosing to make this decision.

According to enKo products website (a shipping and packaging supplies company), There are some drawbacks to think about before jumping straight to Fulfillment by Amazon:

  • You have to get your items to Amazon, which can be both complicated and time consuming for you. When doing this, there are many things you have to take into consideration.
  • What you expect to sell
  • Prepping the items for shipping to Amazon
  • Having a proper label on each item that follows the guidelines Amazon has
  • There may be a possibility of returns. Amazon makes this easy for the customer, but on the other side, it can be tough for you. You will find that it can get costly and you have the possibility of having extremely high costs to deal with the return on your end
  • You will also lose some potential to brand the way you want to. There is no way you could use customized packaging, which could lead to overshadowing and not giving you the exposure you want for your company.
  • If you find that sells for your products aren’t going as you would like to, you will end up having to pay a lot more in storage costs. If your items sit longer than anticipated, you will have expenses that are higher per cubic foot that being used or per item, whichever is higher in the formulas that Amazon uses.

Knowing all of the information that would be relevant to making your decision is a crucial component to making sure you are making the right decision for your company. You need to look at every angle that you possibly can to make sure you are precisely informed and doing what you need to do. Keep these statistics in mind when you are planning things out.

  • Amazon sells more than 12 million products
  • Those that use Fulfillment by Amazon see a 30-50% increase in their sells
  • The return rate for products fulfilled by Amazon is about 5-15%