Do you sell on Amazon? Are you debating whether or not you should use Fulfillment By Amazon (FBA)?
In this infographic, we’ll cover the pros and cons of FBA to help you decide if it is right for your business.
Overall, FBA is a program where sellers can store their merchandise in Amazon warehouses. Then, when an order is placed, Amazon will pack and ship orders for you. One of the biggest advantages of Fulfillment by Amazon is time saved. However, saving time comes at a cost.
If you are prepared for hefty fees, FBA can be well worth it for your business, since it offers a complete solution to housing, packing, and shipping your products. Also, FBA has no inventory minimum.
Even though there is no inventory minimum, we recommend FBA for rapidly growing and higher-volume businesses. For business that are rapidly growing, FBA can save you time on setting up in-house infrastructure.
If you do decide to use FBA, it’s a good idea to also have other options. Amazon can change its inventory requirements at any time, as we witnessed in March and July in 2020. Many Amazon sellers were left stranded without a plan B for distributing their products.