The Pros and Cons of FBA – Fulfillment by Amazon
Fulfillment by Amazon is a great way to make money with your old books. You send them to Amazon and they sell them for you. They store the books for you, take the orders, handle customer service, pack and ship; all you do is wait for the money to roll in.
It sounds like a great business model, right? Well, before you get into it, you should know the pros and cons of FBA.
Everybody Knows Amazon
The biggest advantage of fulfillment by Amazon is the fact that they're a household name when it comes to online shipping.
Everybody knows, loves and trusts Amazon.
It's much easier to sell stuff there than on your own website.
Over 600 million people use Amazon for their online shopping.
The FBA Advantage
When you sell using fulfillment by Amazon, your listings get bumped up in search results ahead of everybody else.
Even if your prices are higher, because you're FBA, you'll be at the top.
They also offer free shipping for FBA sellers so you can undercut your competition and still make a good profit.
Amazon does everything for you so you can focus on other aspects of your business.
Shipping is a major drain on all business's resources and that's why fulfillment houses are so popular.
The Amazon website walks you through the process of getting set up and they have a webinar and other resources to answer all of your questions.
A Start for Your Business
Lots of people sell their old books on Amazon because it's better than having a garage sale.
But you can also use FBA to start your own online business.
They provide the platform for you and all you need are the books to sell.
Fulfillment by Amazon isn't ideal for all types of products. They store your goods for you but you have to pay storage fees.
If you've got items that might take some time to sell, FBA may not be the best option.
Your Eggs in One Basket
If you start a business selling books through FBA, your business is dependent entirely on Amazon.
You're at the mercy of their policy changes and whims.
It's a little dangerous to have all of your eggs in one basket like that.
One way around that, though, is to use FBA for the time being while you build your own site.
Amazon's Return Policy
Read FBA forums a bit and you'll find out really quick that everybody's pet peeve is the return policy.
You have to abide by Amazon's return policy, which is pretty generous toward customers.
Amazon's very customer oriented which is generally a good thing, but if your books are returned, you've got to deal with them.
FBA is a great way to make money if you know how to use it. Take a look at Amazon's tutorials, webinars and other resources and see if it's right for you.
You've got to get creative and think outside of the box a little if you want to really make money with FBA.
Here are some advanced tips culled from the experts.
- See more at: Fulfillment by Amazon How to Guide
The Process Is Straightforward
It seems like a lot at first, but the system is actually very straightforward.
You'll get used to it quickly. Amazon's website walks you through the process to get you started and there's a helpful webinar that explains how it works.
You can also find help forums and other resources to help you get your questions answered.
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