One thing cannot be all good every time, right? The same is the case with Amazon FBA. Without a doubt, there are multiple perks associated with it, especially for sellers like shipping and good customer care. However, there’s a downside that most of the new sellers are not aware of. Although, it depends upon the need Fulfillment by Amazon cannot be all beneficial. Even the best amazon fba course can’t help you with these issues. Do you want a detailed analysis? Why don’t you have a read further?
Fee of FBA
There are two types of sellers over the platform of Amazon. One is those who have reasonable money to start their store and can pay all kinds of fees for taking Amazon services. The services provided by Amazon like FBA are based on the fee that a seller gives every month. The second type of seller is those who have small investments and are new to the world of eCommerce.
For starters the initial fee can be quite hectic as at that time the sales are minimum and profit generated is also minimal because they cannot afford to sell an entire batch of products. SO FBA by Amazon is not easy to afford, especially for those who are new to this business.
Open Return Policy
Since its inception, the main focus of Amazon has to be customer friendly platform. Well, it’s a good strategy and this aim has made the company the biggest one in the market. Many sellers have been complaining about the return policy of Amazon. This ismainly due to Fulfillment by Amazon as the company provides excessive facilities to the consumers. Most of the big whales often complain that this policy hits back because of the scammers.
Storage Fees
The next issue in the line is the storage fee of the old products that stay there for a long time. Undoubtedly, storage is a blessing for sellers but some products are not for sale and they are placed in warehouses owing to which Amazon charges for their storage. So you have to make sure that your product doesn’t stay there for long.
Furthermore, some products are not actively in demand so letting them stay at storage would cost you some charges. It is better to take them back to your facility. Storage optimization should be frequently dealt with to reduce additional charges.
Amazon Deduction Policy
Fulfillment by Amazon has been quite handy for most of the sellers but the company has some strict policies when it comes to fee deductions. As we all know that Amazon charges for the products stored at warehouses and if you run out of balance Amazon isn’t going to wait for your next sale to happen to clear the pending dues.
Similarly, some people don’t have enough money to pay the dues. In such scenarios, Amazon asks for a credit to ensure that all the dues are paid in time.
Conclusion
FBA is a wonderful policy that has pros and cons. Its benefits are many but there are some associated setbacks as well. Most of the sellers are happy to this day however some face issues that become a downfall to their businesses.
