How To Use Flowspace to Run your FBA Business

Flowspace

FBA Pros: How It Benefits E-Commerce Companies

As the world’s largest retailer, Amazon’s FBA program has grown exponentially over the years. E-commerce companies big and small seek out the FBA benefits that have helped brands over the years. The biggest pros of the program are that it’s a time-saving solution with immediate brand recognition, along with widespread consumer use of the Amazon platform.

Time-Saving Solution

One of the biggest Amazon FBA program benefits is the time it saves growing e-commerce businesses. When a surge in sales occurs, the Amazon FBA platform takes care of the logistical management of packaging, shipping, and handling customer reviews and questions. When all of this is taken care of by a third party, it allows businesses to concentrate on building their brand and performing product research.

Although Amazon’s FBA program is a popular option, it’s not the only e-commerce fulfillment solution available. At Flowspace, we can also alleviate this part of the process for e-commerce businesses, including those selling on Amazon, but without added-on program fees, Amazon FBA shipping charges, and storage expenses.

Access to Amazon Prime Customers

Another one of the biggest FBA benefits is access to Amazon Prime customers. When you list products with FBA, they can become eligible for this incentive, and those that qualify have their Amazon listings appear with the Prime logo.

No-Hassle Customer Returns

Part of the benefit of using Amazon FBA is that Amazon associates handle customer returns. This can take up a significant part of a seller’s workday, making it a convenient task to delegate to a third party. With FBA, customers have access to return services 24/7.

Buy Box Eligibility

Earning “Buy Box” status is important for an Amazon FBA seller because the offer is posted near the top of product detail pages. To become the featured offer, sellers must meet performance-based requirements, and it is only available to those with a Professional selling account.

FBA Cons: Why Companies Should Consider Alternatives

There’s no denying Amazon is a leader in the e-commerce space, but as the platform continues to grow so do fees, policies, and other benefits that may not be as alluring as they once were. Therefore, it’s valuable to explore alternative solutions and consider how much the cons of the program may outweigh the FBA benefits.

Missed Growth Opportunities

Since all customer information flows through the Amazon FBA platform, this means you don’t have access to any customer information to use for branding or advertising campaigns. Without having customer data to build upon, you miss out on opt-in opportunities for email subscriptions or engagement on social media.

Strict Receiving Guidelines

When preparing your products for FBA shipping, you must follow Amazon’s guidelines when sending your inventory to one of their warehouses. Each item you package must be prepped according to its product type. There is a long list of packaging and prep requirements that includes everything from box type and bubble wrap criteria to abiding by drop tests and expiration dates.

Setup and Scaling Fees

Many starting on the Amazon FBA platform may be overwhelmed by the amount of fees associated with the program. For example, there are monthly plan fees, monthly storage fees, and fees for tools and API integration. The cost of convenience and unlocking different parts of the platform come at a price.

Stagnant Inventory and Long-Term Storage Fees

If there’s a dip in sales or a surplus in inventory due to over-ordering or wrongly predicted sales seasons, it can be costly to store it. Inventory that’s been in a fulfillment center longer than 365 days will incur a monthly long-term storage fee in addition to the monthly inventory storage fee Amazon already charges.

Finding an E-Commerce Fulfillment Solution That Suits You

Amazon is a fully integrated system that many sellers use every day. The competition on the platform along with the changing policies and fees set forth by Amazon has caused many to ask “Is Amazon FBA worth it?” and consider other routes for e-commerce fulfillment.

Flowspace supports e-commerce fulfillment solutions for brands selling anywhere online, including on Amazon. The Flowspace Network is distributed across the country, which means Flowspace can store and manage your inventory at a fulfillment center closest to your customers.

Exploring other fulfillment options allows you to weigh the costs and convenience against the contingencies necessary to operate your business successfully. At Flowspace, we are dedicated to providing transparent pricing scales, real-time inventory visibility, and operational efficiency.