10 Key Benefits of Amazon FBA For Sellers

When you start making sales on Amazon, handling your logistics can be challenging. If you’re selling products in high demand or have a high volume of orders, you may want to outsource packaging, shipping, and delivery to Amazon. Regarding more technical logistical handling, Fulfilment by Amazon (FBA) may be the better route. 

There are several benefits Amazon sellers can look forward to when it comes to using this fulfilment system. This article will look into the service benefits of Amazon FBA may just be the way forward for you and your online business. 

What is Amazon FBA?

Amazon gives those who sell products on the marketplace the option to handle order fulfilment themselves or to have them handled by Amazon. FBA means that Amazon will handle everything from sourcing the product on order, packaging it, shipping it, and ensuring it’s delivered in an adequate condition to the customer. 

Amazon will also handle customer service throughout the process, meaning that representatives from Amazon will be on standby to handle any queries surrounding a customer’s order. Aside from convenience, other benefits are associated with using Amazon to complete orders. Let’s take a closer look at some of the other benefits of Amazon FBA. 

10 important benefits of Amazon FBA

Hassle-Free Fulfilment 

Amazon handles storage, packaging, shipping, and customer service, freeing up time for sellers to focus on other aspects of their business. Amazon FBA allows sellers to automate their order fulfilment and delivery processes. Sellers simply need to send their products to Amazon’s warehouses, and Amazon handles the rest, including packing, shipping, and customer service.

Low-Cost Shipping

Amazon negotiates substantial shipping reductions with major delivery carriers, resulting in lower costs for sellers than shipping products independently. This helps businesses generate more profit per purchase compared to shipping products themselves. 

Efficient Returns Management

Amazon FBA ensures efficient returns management for sellers by handling the entire process, from receiving returned items to processing refunds. Amazon manages the return logistics, including receiving the returned item, evaluating its condition, processing the refund, streamlining the process for customers, and reducing the burden on sellers. Amazon provides clear guidelines and policies for returns, ensuring compliance with customer expectations and maintaining a healthy business. Detailed reports and analytics are also available for FBA returns, enabling sellers to track and analyse return rates and make improvements.

Unlimited Storage Space

Amazon provides unlimited product storage space, allowing sellers to scale their operations without worrying about storage constraints. All the seller needs to do is maintain an Inventory Performance Index (IPI) score above 350 during the two score check weeks, which occur 6 weeks before the end of each quarter and the last full week of the quarter. 

This is particularly useful for new sellers as those who have been active for less than 26 weeks or do not have enough sales data to generate an IPI score during both score check weeks will not be subject to storage limits. 

Faster Delivery Service

With numerous fulfilment centres globally, Amazon FBA ensures faster delivery to remote locations, enhancing customer satisfaction. FBA items are eligible for Amazon Prime, which offers fast and free delivery to Prime members, allowing sellers to get their products to their customers much quicker. 

Amazon has invested heavily in its shipping infrastructure, delivery stations, and transportation partners, allowing for faster and more efficient delivery of FBA orders. Sellers can help improve delivery speeds by sending inventory to multiple fulfilment centres and maintaining optimal inventory levels. 

Omnichannel Order Fulfilment

Omnichannel order fulfilment is a centralised strategy for managing orders across multiple sales channels, retail stores, and online marketplaces. It involves using a unified set of resources, including inventory, order management, and shipping, to ensure a consistent and efficient customer experience regardless of how and where customers interact with a brand or sellers’ products. 

Amazon FBA can also provide sellers with data analytics to further inform them about their customer base, thereby giving them a more detailed overview of the strategies that work and which products are performing well. By partnering with specific courier companies and having the option to store products at multiple warehouses, Amazon FBA provides omnichannel order fulfilment to sellers. 

Prime Eligibility

Products fulfilled by Amazon are eligible for Amazon Prime, which can significantly increase sales due to its popularity. To be eligible for Prime, sellers must meet specific requirements, including nationwide availability, free shipping, and free returns for Prime members. These criteria emphasise the importance of efficient and customer-centric fulfilment processes. This allows sellers to focus on other aspects of their business while Amazon ensures that Prime members receive a consistently excellent shopping experience. 

By using FBA, sellers can automatically qualify for Prime and benefit from its advantages, such as faster delivery times and increased customer satisfaction. 

Customer Trust 

Amazon’s established reputation provides a trusted transaction platform, influencing buyers’ confidence and increasing the likelihood of repeat business. It provides global access to a vast customer base, where trust is built through Amazon’s reputation for addressing customer issues promptly and efficiently. 

They have built a reputation for providing exceptional customer service, which they have made part of their brand make-up and consistently deliver, thereby helping to instil trust in the sellers’ products. 

Scalability

Amazon FBA can support business growth without requiring increased physical infrastructure on the seller’s side, making it an attractive option for scaling businesses. FBA is designed to handle high volumes of orders, offering sellers scalability without additional infrastructure or resources. Amazon manages the entire fulfilment process, freeing up sellers to focus on product sourcing, marketing, and customer acquisition. 

24/7 Customer Service

Amazon provides round-the-clock customer assistance, which is valuable for both sellers and customers and enhances the overall customer experience. Amazon offers this support through various phone, chat, and email channels. This support enhances the sellers’ reputation but also means that the sellers do not have to spend time on customer queries. Instead, they can focus on their business. 

Get Mercatus on Board for all Amazon FBA Queries

If you are debating over whether or not to opt for Amazon FBA, get in touch with Mercatus today. We have a deep understanding of these fulfilment programs and which sellers they are best suited to. 

We can, therefore, provide expert support and guidance as we offer services that cover various aspects of Amazon FBA including advertising and marketing, so you can make the most out of your Amazon store. 

Contact a member of our friendly e-commerce specialists to find out more about our Amazon services and other benefits of Amazon FBA.