How Amazon FBA Can Benefit Your Business in 2021

With Amazon’s successes being proven on a daily basis, many business owners are looking to expand their target market with involvement on the platform. Luckily, Amazon has decided to make things easy for those listing their products on the platform- with Fulfillment By Amazon (FBA) services. 

What is Amazon FBA? Essentially, the service (or rather, collection of services) allows business owners to focus on selling products while Amazon does most of the heavy lifting. This includes picking up, packaging, and shipping products, as well as scaling businesses and dealing with all matters of returns.

Using Amazon’s Revenue Calculator

While using FBA services is useful, it can also be costly. However, Amazon makes it easy to see how cost-effective the service is for some products by providing a revenue calculator for business owners. 

Using this tool, it’s simple to see how efficiently your FBA business is operating- and which products are worth listing with the service. It’s worth noting that the typical gross margin for an FBA business is somewhere between 15-20%, adjusting for expenses and fees associated with FBA. Of course, considering the fact that Amazon FBA can also help to grow and scale your business simply by expanding the number of people who see your product listings, the fees might just be worth it.

Appealing to a Wider Range of Customers

Aside from the practical benefits of Amazon FBA, products listed with the service are automatically given the coveted ‘Prime’ badge. This means that members of Amazon prime who thrive on the promise of next-day shipping and quality customer service will be more likely to choose your products over their non-Prime equivalent.

Amazon FBA Lets Business Owners Focus On What’s Important

By virtue of not having to think about shipping, packaging, returns, or other minutiae of providing physical products to customers, business owners can focus on what’s important: selling products and honing their marketing strategy to target the maximum number of people in their niche. 

This is especially vital when considering perhaps the most often-cited pain point of selling with Amazon FBA: business owners do not receive data about their customers. However, using the time that is no longer spent on fulfilling orders, entrepreneurs can concentrate on growing their platform outside of Amazon- this can be a website, mailing list, or alternate platform of eCommerce. By growing these independent platforms, businesses and brands can better connect with their customers and learn more about them. This, in turn, can help to inform marketing strategies outside of Amazon.

Working With An Amazon Marketing Agency

If handling dealings with Amazon’s FBA services on top of the everyday tasks your business demands sounds beneficial yet daunting, you may wish to invest in a partnership with an Amazon agency. Many services are currently available through which an external team can optimise your Amazon strategy to improve your product descriptions, search rankings, Amazon SEO, advertising effectiveness, and more. 

By leaving your Amazon strategy to expert teams using proven techniques, your business is likely to find greater success on the world’s largest online marketplace.