Amazon FBA is identified as one of the best opportunities available for the people who live out there to make money. As a result, I decided to give it a try as well. However, the experience I had with Amazon FBA was not a positive one. I had to go through a lot of difficulties when I was working as an Amazon seller. This forced me to quit Amazon FBA as well. Hence, I thought of sharing my story with others, so that I will be able to educate others on what’s really taking place behind Amazon FBA. You can go through it and then get yourself enrolled in it, only if you are interested.
What motivated me to get in touch with Amazon FBA?
As a businessman myself, I knew that with their worldwide logistical reach there would be a reasonable content from my profit that I would need to dole out. But having been on the Amazon FBA, platform for just over two years I have been devastated.
Amazon has not charged me at every twist and turn, which I would be able to understand, if that was the case but No! They have fleeced me, that too without any scruples. I did make a profit on my products and a substantial quantum too, but it was slowly filtered out form my account at Amazon on various ruses.
Looking back I would like to recollect the charges and the fees that Amazon FBA, charged from me over this period and come to the conclusion that I have been gullible enough to be taken on a right royal ride. I have made the dollars for Amazon but at the bottom line lost money at the business end of the arrangement. I will try to explain how this came about and would advise readers to peruse carefully between the lines before you would commit yourself to the agreement with Amazon FBA.
Amazon’s dual avenues
There are two salient methods of joining the Fulfillment by Amazon or FBA platform and that is as a company selling more than 40 products over a period of a month or as an individual selling less than that quantity. Whatever you may select it is important to understand what your product is and what time frame you would need to ensure its movement from the Amazon warehouse. Based on that and the product line you would have it would be prudent to select the right avenue to place your products on the Amazon FBA, platform. Amazon would offer three basics to propel the product onto their universally popular e-commerce platform. What they offer are storage, shipping and support.
You could send your product to Amazon FBA and they would store it by packing it in their standard branded cartons or other appropriate packaging. They would charge you for the storage, which would be as per the volume of the carton that they have packed your product in.
Here is where the first anomaly could begin invariably there could be an anomaly between you dimensions and that of Amazon. This is due to the fact that they have standard cartons and when your product ends up in their carton there could be a difference in the dimensions.
It is your prerogative to select from either of the two as you would know what you intend to sell on the Amazon FBA platform and what quantities you would ultimately sell. It is at this stage that you should be prudent in your planning because whatever product that goes into the Amazon warehouse would start adding the storage fee onto it till it moves out. The more you keep it there the more storage fees it would start adding on.
Comparatively this would not be a very high fee but still it would keep adding you till it finally moves out of the Amazon warehouse. The sooner it moves out it is advantageous to you if not every cent that you lose is being deducted from the profit that you are supposed to make.
The issue comes to a head when the product does not move for six months or more, and at that time you would be paying twice or thrice as storage fees compared to what you were paying at the beginning. If you miss tracking your product you would be already losing money from your account at Amazon.
Shipping too would be determined as per the dimensions and the subsequent volume of the product carton you would need to pay for the charges from there to your customer. You would be charged for handling and various other charges, till the product leaves the warehouse and until it arrives at the customer’s destination.
A percentage from your selling price would be deducted from you, which would cover Amazon’s support and other auxiliary fees. These charges too would depend on the size and the weight of the product.
True they would be offering a very comprehensive logistical package from inception, that is when the product reaches their warehouse till it safely reaches the customer but it would carve out an exorbitant slice from your profits.
Amazon offered me the logistical support but I was paying them about 33% plus, from the selling price which was rather high compared to the present shrinking profit margins for most products in this competitive marketplace. Paying one third could be quite high and with low profit margins this was too much for my products to bear. The tough part was that they charge a few dollars for everything they do and all that adds up at the end to a very high amount.
There is no compromise, of course which I did not expect either, but if you don’t monitor your products and keep a close watch on them on the Amazon FBA e-commerce website you could be losing more money than you would think.
I just could not bear this huge cost hence I decided to quit Amazon FBA, for good.
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