The pros include:

  • Convenience – Amazon will take care of all the shipping and storing logistics which will free you up to source your items and grow your business
  • Multi-channel – FBA is not a service which is exclusively meant for Amazon, online merchants can use this service for their Shopify or personal web stores as well
  • Consumer confidence – Offering your item to consumers under the FBA umbrella provides your shoppers with a sense of trust and confidence that their items will be shipped in a timely and professional fashion
  • Prime Shipping – Your product will be offered under ‘Prime Shipping’ meaning a consumer who is a Prime member will receive an item within one business day
  • Search result placement – Amazon’s algorithm favours FBA users meaning by being a part of this program you will appear higher in search results on Amazon and may sell a higher quantity of products as a result
  • Customer support – Amazon provides your customers with support 24 hours a day and deals with the logistics of returns

The cons include:

  • High costs – Amazon charges $35 a month as a base fee for having an Amazon seller account and roughly 30% of each product’s value in addition. This percentage is based on how long the item sits in Amazon’s storage facility and based on the item’s dimensions – I will discuss this in depth later on in this post.
  • Prep time – Items have to be prepared and packaged according to Amazon standards otherwise Amazon will do the work for you at an additional fee
  • Delays – During extremely busy seasons such as holidays, due to the high volume Amazon deals with, you may experience delays which can temporarily result in an item of yours being out of stock despite you having sent in more merchandise which has yet to be processed ie you lose control of restocking to a certain extent
  • Branding – When using FBA you may lose out on big branding opportunities when it comes to the shipping boxes and labels – all boxes are marked with Amazon logos. If you feel like this is a big part of how you communicate your brand and foster a relationship with your customers FBA may not be for you
  • No customer email list – When using FBA Amazon does not allow you to build an email list of previous customers in order to maintain a relationship and remarket to them – this can be a serious deterrent for some folks