Amazon FBA: Fulfillment By Amazon Review

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Sometimes it is too easy. When you want to be a seller at your advanced age, sometimes it is a very easy task to do. As those bones get older and start creaking, it is very good news that you do not have to handle the shipping part of your senior citizen business. Those golden years are not always golden, and it is always good to have a silver lining behind some gray clouds helping you out. To learn more about Amazon FBA just continue to read our Amazon FBA: Fulfillment by Amazon Review Pros & Cons review.

What is Amazon FBA?

The concept is very simple. You send your products to an Amazon warehouse, they stock it for you, and then when the orders come in, the company sends your products to the customer. It’s fast, simple, and saves you a lot of hassle.

Then, Amazon will also handle all the returns and refunds that come in when customers are not happy. As a senior citizen, it is a very easy way to handle your business as all you have to worry about are sales and marketing.

The bad news is that this concept is not for every product so you will have to make good choices before you sign up.

How Does Amazon FBA Work?

As you can see, the concept is very easy. You are a third-party seller advertising through Amazon’s website network. What the Amazon FBA program does for you is streamline your business.

All you have to do is sign up and create your selling account. Then log in to seller central and set up the FBA option. Next, you create your product listings and when you add those to the Amazon catalog, make sure to mention it is FBA inventory.

After that, you send your products to the nearest FBA fulfillment center and wait for sales. Or at least start selling your products. It is safe, convenient, and fast as long as you follow Amazon rules.

Can You Make Money with Amazon FBA?

Sort of. There are a lot of Amazon fees that have to be paid in order for you to make any money. There is the cost of advertising fee, the FBA transaction fees, the FBA selling fees, the service fee, and the inventory and inbound service fees.

When you add all that up, it is possible that 80% of your revenue ends up in Amazon’s pockets. That is why we said this is not a good system for some items. You would need high profit products to use this system and make money.

Or you just add those costs to the individual items and cover those expenses through your higher purchase price.

Examples Of How to Make Money with Amazon FBA

The only way to make money through this program is to have the ideal product that everyone wants. Prices go down when the volume is brought into the mix, but you would need a lot of volume when you use this program.

This may be a good thing as it helps you avoid adding to your overhead if you do the stocking, handling, and shipping yourself. That is if you can fold the cost of all the fees into the cost of the product. But if you do, you may be higher than your competition and lose sales because you are too expensive.

Fulfillment By Amazon Review Pros:

multi-channel fulfillment solutions- allows you to sell on different channels while Amazon does the shipping for you
frees up your own storage space
quick delivery and Premium shipping are included
you get to use Amazon’s good customer service system
you do not handle returns or refunds
discounted shipping rates
the work is done for you

Fulfillment By Amazon Review Cons:

can be very expensive to use
returns can skyrocket due to Amazon’s official policies
long term storage fees
must meet Amazon’s incoming product prep policy
sales tax issues
very easy to get into debt to Amazon

Any Negatives? Beware of Lawsuits

There are many lawsuits against Amazon and that is understandable as it is a very big company, and someone somewhere will have a problem. However, we found no lawsuits pending against the FBA portion of the business.

There are some negatives, however, and they can be annoying to some sellers. Returns may be calculated strangely as even a partial return order may have the money refunded yet the product is never returned.

Then it is hard to get past all those fees. Those fees are not carried over to a new sale and if you are a senior on a limited budget, you may be in the hole before you know it. The fees have to be paid BEFORE Amazon sends you any money.

When you are dealing with any company the size of Amazon, the contracts are always in favor of the larger company so read the fine print carefully.

Is Amazon FBA Legitimate?

Yes, this FBA portion of Amazon is very legitimate. There are many sellers on the site that use it and have found ways to overcome the negatives and make some money. There are basic reasons why some people make money through this program while others do not.

One is that they got on board when early and have created enough volume not to worry about the fees. or they have a product everyone wants at a price everyone is willing to pay. The FBA program does work but it won’t work for everyone or every product

Final Thoughts: Fulfillment by Amazon Review

Amazon is well known, and chances are you can have a successful business through their network of programs. However, you have to be smart and advertise well in order to cover those fees. As a senior, you need to look at all the fine print to make sure this option will benefit your new career.

As reviews go this Amazon FBA review is moderate at best as Amazon will make sure it makes all the money even though they have you thinking they are doing you a favor.

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