Is Amazon FBA Worth It

Many sellers still aren’t sure about joining Amazon seller central.

They wonder: “Is Amazon FBA worth it?” And doubts make them stop trying to EXPAND their business. 

Shipping to Amazon FBA is NOT AS COMPLICATED as you think. 

Leeline’s business model EXPERTS crafted this cheat sheet. Let’s talk about whether Amazon FBA is still worth it. You won’t have to find information ANYWHERE ELSE. 

Continue reading to grow your business! 

Advantages and Disadvantages of Amazon FBA

Interested in knowing whether Amazon FBA is for you? 

Let’s go over the pros and cons of this program for e-Commerce sellers. Starting with its… 

Advantages:

• 2-day shipping 

Most FBA products qualify for Amazon Prime. This means an Amazon Prime member receives your goods in just 2 days. This EXTREMELY fast delivery is EYE-CATCHING for customers. You boost your sales by as much as 25%! 

• Less work 

I’m sure you have LOTS of tasks as a business owner. Luckily, Amazon’s FBA program takes a huge chunk of responsibilities off your plate. You’ll be OUTSOURCING the processes of packing and shipping out your products. You get more time for other aspects of your business! 

• Buy box sales 

Let’s say MANY Amazon stores sell the same product. Well, Amazon PRIORITIZES FBA sellers. So, most likely, Amazon sells the CUSTOMER your FBA products. More money for you! 

Disadvantages:

• Fees 

Amazon requires sellers to pay monthly costs. These fees are for inventory storage. And, of course, the fulfillment fees for preparing and shipping your products. 

Note: You might cut your profits if you don’t CALCULATE your Amazon fees properly. 

• No control over customer service

Amazon handles customer complaints and returns for you. You have NO CONTROL over the customer service standards. This backfires on your business if Amazon talks to your customers rudely. 

• You can’t customize packaging 

MOST customers love customized boxes from online businesses. Some even BUY AGAIN just for the add-ons or freebies. Unfortunately, you’ll lose the freedom to IMPRESS your customers with customized boxes. Because Amazon only uses PLAIN and standard shipping packages for FBA products. 

Why is Amazon FBA worth it? 

Amazon FBA is worth it. I’ll go over 3 reasons you should be selling on AMAZON FBA today! 

1. Millions of shoppers

Amazon is the KING of online shopping. In fact, 71% of consumers go straight to the Amazon marketplace when they need to buy something. You won’t have a HARD time finding customers to sell products to. 

2. Fastest delivery 

Amazon delivers FBA products in less than 2 days. This ATTRACTS more customers to buy from your FBA business.

3. Built-in marketing template 

Amazon ADVERTISES FBA products on its homepage. MILLIONS of people see your goods. You won’t have to spend more money hiring an advertising agency. 

How much does Amazon FBA shipping cost?

Amazon FBA costs money. But how much YOU pay for your Amazon FBA fees depends on many factors. It’s HARD to give an estimate without knowing your product’s details. 

So, to give you some guidelines instead, here are the… 

3 factors that affect your Amazon FBA shipping cost:

1: Type of good

I’m talking about whether your products are considered DANGEROUS or NON-DANGEROUS. 

Your Amazon FBA fees vary significantly depending on the 2. 

DANGEROUS GOODS are more EXPENSIVE. After all, they need extensive packing and handling requirements. Keeping them in storage also has to be more careful. 

2: Fulfillment fees

Here’s the price you pay for Amazon’s fulfillment services that include: 

• Picking and packing your orders.
• Shipping and handling
• Customer service.
• Customer returns. 

How much you pay for the fulfillment fee DEPENDS whether your product is:

• Apparel (clothing products).
• Non-apparel. 

Non-apparel goods’ fulfillment charges cost $3.07 for small-standard packages. It’s $161.11 for special oversized items. 

For apparel products, the fulfillment charge ranges from $3.43 to $161.11. Depending on the size of your product. 

3: Inventory storage fees

Amazon charges this fee MONTHLY. This varies depending on the following:

• HOW MANY units do you have in your inventory supply?
• HOW MUCH SPACE do they occupy?

Use this graph as a reference for your FBA inventory fees:

Season	Standard Size	Oversize
January – September	$0.75 per cubic foot	$0.48 per cubic foot
October – December	$2.40 per cubic foot	$1.20 per cubic foot

Note: Amazon charges a SEPARATE fee if your products stay in its warehouse for OVER A YEAR. It’s either $0.15 per unit or $6.9 per cubic foot. Depending on which VALUE is greater. 

When need Amazon FBA？

There are 4 scenarios you NEED AMAZON FBA. Let’s go over them! 

#1: When you don’t have a warehouse 

Managing inventory is a TEDIOUS process. It’s also a HUGE headache if you don’t have a warehouse to store your goods in. 

Don’t have a place for your products?

Become an FBA seller! 

Because Amazon keeps and manages your inventory. You won’t need to RENT a stockroom. Or hire people to oversee your goods for you. 

#2: If you want to save time

Organizing products, packing, and labeling them is ALL time-consuming. SKIP all these processes by selling products through FBA. You’ll have more time and energy for other aspects of your business. Those include market and product research.  

#3: If you’re a new seller 

Many new sellers make 1 or 2 SHIPPING MISTAKES at first. Unfortunately, mistakes DISSATISFIED customers. This means less profit for you. 

You won’t have this problem with FBA. Amazon delivers EVERY ORDER in your stead. They’re experts at fulfilling orders. So YOU guarantee LOYAL and satisfied repeat buyers. Even as a new business. 

#4: If you want to go global 

It’s not a secret that AMAZON is 1 of the largest eCommerce platforms worldwide. You GUARANTEE a much larger customer base when you sell on Amazon. You won’t need to do EXTRA ADVERTISING. Because Amazon displays FBA products on the main homepage. 

FAQs about Is Amazon FBA Worth It

What’s Next

By now, YOU know when it’s best to use AMAZON FBA. And whether it’s WORTH IT for your business. 

More often than not, we urge business owners to sell on FBA. Because we’ve seen SMALL online stores get up to 10x ROI after selling on Amazon.

So, if you’re interested in becoming an FBA entrepreneur…

CONTACT Leeline. We’ll help you ship your goods to Amazon from scratch! Our fees won’t break the bank. Click here to get a FREE QUOTATION.