Is Amazon FBA Still a Profitable Business

Amazon FBA: Is It Still Worth It In 2020 And How Does It Work

If you ask me, selling on Amazon FBA is still a profitable business, but it is not nearly as easy or as straightforward as it once was.

Years ago when I sold on Amazon FBA, the marketplaces were not nearly as saturated. There weren’t nearly as many sellers competing with each other for the buy box. You didn’t have to worry about “non-gated” categories where non-FBA sellers could compete with you and get seen by your customers first, in search results.

And most importantly, back then you could sell almost anything and everything and make money hand over fist.

The ecommerce platform Fulfillment By Amazon (FBA) has been a game-changer for small businesses, allowing them to sell products online while leaving the logistics to Amazon. But rising costs and increased competition mean it’s not necessarily right for every seller.

FBA was originally designed so that third-party sellers could save on shipping costs by storing their inventory at an Amazon warehouse. When a customer placed an order, Amazon would pick, pack, ship and handle customer service for that order. And now, with more than 300 million active users on Amazon and millions of products available on the site, it can be a great way to reach customers who may not have found your product otherwise.

However, as more sellers have joined Amazon’s marketplace, the cost of using FBA has gone up due to increased competition for warehouse space. Prices have also increased even as the number of warehouses operated by Amazon has grown. Some sellers say they’re simply losing money through FBA — one recent study found that 42% of sellers weren’t profitable at all in 2018.

While it’s true that Amazon has been making some big changes to how sellers do business on the platform, that doesn’t mean FBA is no longer a profitable model. In fact, if you’re just starting out in ecommerce, I’d recommend using FBA as your fulfillment method from the get-go. Boost your amazon sales with amazon review checker

Here are a few reasons why:

Amazon loves FBA sellers. Amazon wants to offer the best experience for its customers, and it knows that products fulfilled by its own team lead to better customer reviews and higher sales. The company offers numerous benefits for FBA sellers including better placement in search results and access to Prime members (who tend make more frequent purchases). It can be more difficult to compete as an FBM seller because of these advantages.

Good Amazon reviews are everything. When selling on a marketplace site like Amazon, customer reviews are everything. If you’re fulfilling your orders through an external warehouse or via drop shipping, you’re leaving yourself open to negative feedback on multiple fronts: slow shipping times, damaged shipments, mistakes with addresses and so on. When you use FBA, you can rest easy knowing those issues won’t affect your reviews or your long-term presence on the site.

Fulfillment is easier than ever before.

When you sell on Amazon FBA, you’re competing against everyone else on Amazon, including some of the biggest retailers in the world.

Although selling on Amazon FBA can be profitable, it’s not for everyone. It’s very important to do your research before you sign up, or you’ll end up throwing away a lot of money.