8 Reasons to Use Amazon FBA to Grow Your Business
Fulfilment by Amazon (FBA) has revolutionised how e-commerce businesses operate and offers a range of pretty awesome benefits to sellers looking to scale and streamline their online operations. In this video, I’ve highlighted eight key reasons why you should be using FBA and why it’s a game-changer for businesses aiming to grow on Amazon. Below is a summary of these top tips, some of which you may have not heard of before.
1. Stay Competitive with Prime Customers
Amazon Prime dominates the market and allows you to tap into around 14 million loyal subscribers. If your products aren’t FBA enabled, they miss out on the all important Prime badge which in turn reduces product visibility and overall conversion rates. Customers trust the fast delivery and perks of Prime making it an absolute necessity if you want to compete effectively.
2. Leveraging Fulfilment Opportunities
Using FBA simplifies logistics by enabling sellers to send single units, cartons, or even pallets to a vast network of Amazon’s fulfilment centres. This ensures your stock is managed effectively, with seamless returns and quick resolution of issues.
3. Ease of Access into Europe and the US
One of the great perks of FBA is that it facilitates global expansion and allows sellers to enter new markets like Europe or the US with minimal hassle. Amazon’s tools simplify paperwork, logistics, and shipping, making it easier to reach international customers and streamline operations.
4. Better Detailed Seller Ratings (DSR)
Since using FBA handles your customer service and returns, you’ll start to see improved Detailed Seller Ratings (DSR) which is a crucial part of your overall seller profile. Poor delivery experiences are a leading cause of negative feedback, so with Amazon managing fulfilment, your customers are more likely to leave positive reviews which further boosts your rankings and competitiveness for the Buy Box.
5. Access to Brand Tools like Amazon Vine
Amazon Vine is an exclusive tool for Prime-eligible FBA sellers and allows you to obtain legitimate, high-quality product reviews. The reviews from Vine Voices help your business to establish credibility while improving sales performance, particularly useful for new product launches.
6. Lower Costs Compared to FBM
While it’s true using FBA does carry additional fees, it eventually becomes way more cost-effective as volume increases. Shipping multiple units or pallets to Amazon reduces per-unit costs significantly compared to Fulfilled by Merchant (FBM). This cost efficiency can be crucial for scaling your operations.
7. Multichannel Fulfilment
Amazon’s Multi-Channel Fulfilment (MCF) lets you use FBA to fulfil orders from Shopify, TikTok, and other platforms. This effectively turns FBA into a third-party logistics solution, integrating seamlessly with your existing sales channels.
8. Reduced Losses and Returns
Amazon’s streamlined returns process reduces your labour and handling costs and then ensures returned items can be resold through the FBA system. Overall, this is improving efficiency and only further enhances the customer experience.
Our Key Takeaways
If used to the full extent of its abilities, joining Amazon FBA is a game changer and will help supercharge your business. You’ll effectively lower your costs, expand your reach, improve your seller profile and enhance customer satisfaction. Sounds good right? Yes, of course it does!
If you’re ready to take your e-commerce operations to the next level, explore the benefits of FBA today.
For more insights and tips, watch the full video above and subscribe to our channel for regular updates on Amazon’s strategy.
