What is Fba, and What are Its Advantage and Disadvantage?

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Amazon is a company which was created by a person called Jeff Bezos in Bellevue in Washington on July 5, 1994. Initially, this company was started for the sales of books on the online marketplace and later Jeff Bezos had the idea to start and rebrand Amazon and sell various things.

In the year 2015 when Amazon had firstly started in the business of toys and jewellery surpassed the sales of Walmart and was officially the number one company in America which was selling toys and jewellery that too online and fiving the people the option to receive their products at their doorstep.

Then in 2017 Amazon had started the business where it had introduced other things like foods and groceries market which also used to be delivered to peoples doorstep, and it had taken over the food market also by flood as there was no competitor able to do what Amazon was offering.

Then in the year 2018, Jeff Bezos released something called as the Amazon prime membership in which he introduced the idea of the express delivery system, and also he started the business of movies and TV shows to those whoever had purchased the prime membership.

After Amazon got famous, it purchased many companies which were either a small startup or they were a big company, but their sales were going down, so they purchased the company and then launched it with new ideas and also new content which made it even more interesting ideas and also made those company famous and gained some revenue out of it.

Fulfilment by Amazon (FBA) this is a service which is newly introduced by Amazon where if you are a seller on the Amazon's seller section and have received and order then you don't have to worry about anything like packaging and delivering.

What you will have to do is send the best quality product to Amazon's warehouse and then there they will wrap the things very carefully and nicely and then keep it aside and send it for inspection again after this whole process is done they will then send the package out for delivery.

But there is one more step before delivery is that they will label all your goods perfectly and then check the weight and condition of the item stored in the box and then they will sign the paperwork and send it to the delivery section so that it is delivered properly and with care.

Mostly the products which come to Amazon are shipping to FBAso that they inspect the quality and also the condition of the product and then they will send it for delivery after completing all the inspection checks.

Benefits of using FBA services

Here is the list of all the benefits which are provided by FBA services:

  • Having Amazon's name associated

The quality of the product which Amazon deliver is A1, and people will be most likely to buy these things if it has been branded by the logo of Amazon or it has been delivered by Amazon.

  • Subsidized shipping fee

Because Amazon has a good relation with shipping companies, then the seller will have an advantage as they will get shipping at a lower rate if they are providing the things to Amazon.

  • Multi-channel fulfilment

Amazon can handle shipping and also inventory that too on other websites and marketplaces also.

  • Access to a prime audience

IF your package has a prime logo on it, then you will automatically know that this has come from Amazon through the way of prime shipping which takes one or two days.

The drawback of FBA services

Here is the list of all drawback which is provided with FBA services:

  • Costly fees

The fees of shipping and also conducting quality and safety inspection is high, so it takes a huge load on the seller to avail this option.

  • Product handling issues by FBA

Sometimes the Amazon inventory might get lost or stolen, so it is hard to tell which product will be going where and to what address.

  • Precise product guidelines

Amazon has strict regulations which a seller has to follow; otherwise, their products are rejected due to non-following of Amazon standards.

  • More returns

Once the customer does not like the goods, they will avail the option of returning the goods, and once they do then Amazon will take charges from the seller as their goods disappointed their customers.

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