With over five billion visitors every month, Amazon is the world’s largest online marketplace. Its reputation is only matched by the amount of competition on the platform, as any seller will tell you! However, with the development of ‘fulfillment by Amazon (FBA) services, there is no shortage of tools to help boost sales and benefit marketing strategies on the marketplace, no matter what you are selling or how big your business is.
What is Fulfillment by Amazon?
Amazon’s FBA program is essentially a way to streamline the physical parts of landing a product in a customer’s hands.
When a business signs up to FBA services, everything from packaging and inventory management to the storage and shipping of their products is taken care of by Amazon. The fulfillment center will even take care of refunds and returns in the rare instance that a customer dislikes your product.
Not only this but there are also numerous marketing tools that can improve your Amazon advertising strategy. Many products signed up with FBA can also receive the coveted ‘prime’ badge that indicates they are available for next-day shipping- which, in turn, can greatly increase the attention such products receive from customers.
While there is a fee for the services that must be factored into your budget, the improvements in shipping time, customer service, and all-around conversion rates can more than make up for the initial cost. FBA fees are automatically deducted from each sale you make – which can make it easier to estimate net profits each month once you are an established FBA business.
One major benefit of FBA is that it closely affiliates your business with Amazon- meaning that you will automatically appear more trustworthy to prospective customers, and your products will come with more incentive to buy them than their non-FBA equivalents. However, there are many benefits of working so closely with Amazon services, such as:
FBA Services Save Your Business Money
Retailers aren’t the only business owners looking to cut lucrative deals with Amazon- shipping carriers also have many excellent partnerships with the marketplace. This means that when your products are shipped from an Amazon fulfillment centre, it doesn’t cost your business as much.
This is all the more beneficial if your products are accredited with the much-coveted ‘prime’ badge and qualify for next-day shipping. In this case, your customers are pleased with the speedy shipping, and you don’t have to pay any more than if the package were slated for next-week delivery. Having prime products can also mean that your customers (at least those who are Amazon prime members) can enjoy free, fast shipping- meaning they’re more likely to choose your products over non-FBA competitors.
Improved Customer Service
While many focus on the physical services provided by FBA, another benefit of the service comes from the customer service management Amazon can provide your business. This even extends beyond handling returns and refunds, which is also an FBA service!
Amazon is, of course, famed for their customer service- and having customers contact their specialist team directly can save your business time and money when it comes to training your own specialists.
Amazon’s customer service is available to consumers at any time of day and from anywhere in the world. Whether customers prefer to communicate via email, phone call, or even live chat, the team is available to handle any disputes, discrepancies or other questions they may have about their experience.
Giving You More Time to Consider Opportunities
While Amazon’s FBA teams handle everything from shipping and storage to customer service on your behalf, you can devote time to focus on what really matters: growing your organization, expanding your product lines and researching the best opportunities available to you.
Many business owners even choose to supplement their FBA experience by hiring an Amazon agency to further take care of things like Amazon SEO, marketing, data analysis, PPC ads and other parts of selling on Amazon that are vital (but that can also take up a lot of time if left unchecked).
Essentially, having all of their Amazon business dealings taken care of by a mix of FBA services and agency teams can allow business owners the time to truly create the business they can believe in. Many choose to develop their own platforms beyond Amazon- whether this is in the form of a content platform, blog or e-commerce website.
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