If you’re a crafty individual motivated to sell your handmade items online, or you are a visionary, quite capable of repurposing or upcycling and want to share your cool re-inventions with the world, it has never been easier to start your own online shop. One of the services that has made it even easier is the Fulfillment By Amazon (FBA) service that is all the rage this year in the ecommerce circuit.
What is FBA?
Amazon is always coming up with new innovative opportunities, which allows them to stay ahead of the competition. Well, that and the sheer mammoth size of the company and the share they hold of the market. But the new FBA service is a really inspiration idea, for Amazon itself and for all of the smaller and startup ecommerce ventures out there just popping onto the scene.
FBA offers independent ecommerce ventures the opportunity to sell their product in collaboration with the massive Amazon network. Either, the budding ecommerce entrepreneur creates their own online shop – since the amount of predesigned templates and customizable designs are vast, this is a favored option – or selling directly on Amazon through an Amazon account. This partnership allows the ecommerce entrepreneur the ability to sell their own product, while having access to one of the largest ecommerce networks in the world, as well as the shipping logistics of their merchandise, including packaging, processing, shipping, and returns.
Some of Its Major Benefits
FBA can help a small or new ecommerce venture cut on shipping costs, as well as help them sell to a wider audience, secure more sales because they can offer free shipping to customers or perks of Amazon Prime, and make the entire shipping process easier, faster, and more efficient, allowing them to be able to focus more on the product creation, resulting in more product to be sold and more sales. What is more, since product is stored in Amazon warehouses, a small operation is not limited to the amount of storage available in their private office or home. Finally, since within this FBA agreement Amazon also handles any returns and customer support and returns, this helps small and new ecommerce businesses to avoid this part of the business, which can be time consuming, and they can focus instead on building their brand and expanding their business.
Of course there is a price to all of this, but it is based predominantly on how much business you are executing. The business owner pays a reasonable fee for the storage space, and then pays fees per transaction. So, the more business you do, the more fees you will pay, but also the higher your profit margin is. Whereas if business is still picking up, your fees will be quite low. It is an investment at the end of the day, but one that many ecommerce business owners are jumping on because they believe that access to the wide Amazon network alone, plus the hassle free processing and shipping, will prove to be worth every penny.