FBA can be a bit confusing to people who have never heard about it in the past. The truth is that it isn’t a hard subject to understand. It’s important to take some of the top Amazon FBA courses for you to understand the concept better.
When selling on Amazon, you can use two methods when it comes to fulfilling your clients’ orders. You can either use the FBM method in which you fulfill your clients’ orders by yourself or the FBA method which is more convenient.
By taking the Amazon FBA courses, you get to understand these two methods in a deeper manner. They enable you to weigh the advantages and disadvantages of both.
FBM (Fulfillment by Merchant)
Under this method, you must fulfill your clients’ orders by yourself. You have to ship, wrap, pack, and pick the products that your customers have requested. It’s the default method of fulfilling the clients’ needs whether you are a seller on Etsy, eBay, AMZ, or using your personal Shopify website. This is the usual way of doing online businesses.
FBA (Fulfillment by Amazon)
This is a distinct service that’s provided by websites to the third-party merchants or vendors. In this model, the merchants send their inventories to any of the Amazon’s warehouses. Once a client places an order, Amazon fulfills the order; they are the ones who ship, wrap, pick, and pack the products requested by clients.
There are various advantages of using the FBA method, including:
- Less work for Merchants
Sellers benefit from this method since it lessens their load, Instead of using time to pack orders for their clients, they can use the time and market their products which increases sales.
- Cost Reduction
Shipping in bulk costs less. Since AMZ has a connection and network with shipping companies, it costs them less to ship your products. If you fulfill many orders, you may be surprised to find out that shipping can cost you a lot. If you can allow AMZ to do the shipping for you, you don’t need to worry about striking deals with shipping companies.
- Shopping Holidays are Easier to Handle
One of the worst nightmares for merchants or vendors is the logistics for dealing with shopping holidays. Prime Day and Black Friday can increase your sales drastically. However, think of fulfilling thousands or hundreds of orders by your own! Without a team, you can’t handle the task successfully. But with the aid of FBA, you can allow AMZ to fulfill the orders for you as you relax and make more sales.
- Customer Service
Do you hate dealing with complaints, refunds, and returns? Well, FBA allows you to leverage Amazon’s customer service personnel who have experience in handling customer complaints.
It’s important to remember that FBA isn’t really free. If the platform was free, all third-party sellers and merchants would be using it to sell their products. There are various FBA fees that you must pay for whenever you are using the service. Also, you must adhere to strict guidelines when packing your products.