Benefits of FBA (Sellers and Buyers)
Here,Benefits for SellersとBenefits for BuyersI'll introduce them in two parts.
5 Benefits for Sellers
There are five benefits to being a seller, as listed below.
- ・Helps manage product condition
- ・They handle everything from packaging the products to shipping them
- ・Using FBA makes a product eligible for Prime
- ・Appear higher in search results
- ・Increased shopping cart conversion rate
Let's go through them one by one.
Benefit 1 for Sellers Using FBA: They Manage Product Condition for You
To use FBA, you first need to send your products to an Amazon fulfillment center, and
While arranging for the goods to be received, you will be prompted to enter information such as the “best-by date” and “expiration date.”
Amazon automatically sends notifications for items nearing their expiration date, and
Items that have passed their expiration date will automatically be removed from listing.
Benefit 2 for Sellers Using FBA: They handle everything from packaging to shipping and customer service
Since it's a service that outsources fulfillment to Amazon, I suppose that's only natural.
If you've ever ordered something from Amazon, you'll probably find that sturdy packaging very appealing.
Also, after the product has been shipped,Amazon also handles customer service.。
It's reassuring to know that Amazon acts as a point of contact for everything from general inquiries to returns.
However, if anything comes up, Amazon will contact you, so be sure to check your messages.
My seller rating on Amazon has dropped, andIn the worst-case scenario, your listings will be suspendedThat's how it works.
In that case, please be aware that you may not receive the proceeds from your Amazon sales.
By registering for FBA and entrusting everything from shipping to delivery and customer service to Amazon,
This allows us to focus our efforts on other tasks, such as product planning and marketing.
Benefit 3 for Sellers Using FBA: Using FBA Makes Your Products Eligible for Prime
When you use FBA, the "Prime" badge will appear on that product.
The "Prime badge" is displayed to Amazon Prime members, and
It will be more likely to catch the attention of many Prime members everywhere, from search results pages to product listing pages.
For Prime members, products displaying the "Prime" badge are,
Since expedited shipping and scheduled delivery are available at no extra charge, this can be a factor that boosts the desire to purchase when customers want their items right away.
Also, since Amazon is focusing its efforts on acquiring Prime members,
Awareness of the “prime mark” and its convenience are increasing year by year.
As of March 2024, the number of Prime members in the U.S. has reached 180 million—a new all-time high—demonstrating just how popular the service is. The speed of delivery provided by FBA is likely a major factor behind this success.
Reference:https://www.bloomberg.co.jp/news/articles/2024-04-17/SC267MT0AFB400
Benefit 4 for Sellers Using FBA: Higher Rankings in Search Results
FBA products are given priority and appear higher in search results.
Appearing higher in search results also increases traffic to product detail pages, and
This can lead to increased sales.
Click here for a detailed explanation of SEO on Amazon.
Be sure to check it out!
Benefit #5 for Sellers Using FBA: Higher Shopping Cart Conversion Rate
FBA products can be added to the cart on a priority basis.
Increasing the cart conversion rate is likely to boost the unit session rate and sales.
When listing products on Amazon,
Understanding shopping cart conversion rates is a must.
Three Benefits for Buyers
- ・Amazon Prime is available
- ・Comes with a Marketplace Guarantee
- ・"Cash on Delivery" is available
It is very important in sales to ensure that there are benefits for the buyer as well.
Benefit 1 of Purchasing FBA Products: You Can Use Amazon Prime
"24/7 shipping," "next-day delivery," "peace of mind knowing Amazon handles shipping"—there are many benefits that Prime membership offers to shoppers.
In other words,For Amazon Prime subscribers, the fact that an item isn't eligible for Prime is a major factor in deciding not to buy it.will be.
"If it's eligible for Prime, it'll arrive the next day, so I'll buy it from another store."
"I wanted to buy it along with the items eligible for the bundle deal, so I'll buy it from another store."
Set up your FBA shipping so that this behavior isn't encouraged.
Benefit 2 of Purchasing FBA Products: Marketplace Guarantee
When it comes to online shopping—and especially on Amazon—the biggest concern is delivery issues.
"I paid for it, but it still hasn't arrived after two weeks," "I can't get in touch with the seller," and so on,
Even now that online shopping has become commonplace, I still hear people say this.
For buyers,The fact that Amazon provides a guarantee is reassuring.That's how it works.
It looks like this will appeal to a wide range of people.
Benefit 3 of Purchasing FBA Products: You Can Use "Cash on Delivery"
If the purchased item is an FBA product, users will be able to use "cash on delivery."
In today's world, where electronic payments are becoming the norm, the number of credit card users has increased significantly; however, we must not forget that there are still a certain number of users who do not use credit cards.
If we can ensure that we’re always ready to serve any user, we’ll avoid missing out on opportunities.
Four Disadvantages of Using FBA
Next, I’ll list the disadvantages.
- ・A fee applies
- ・It must be shipped to an Amazon fulfillment center
- ・Once an item is received at an Amazon fulfillment center, it’s difficult to change its condition.
- ・If there's a problem at an Amazon warehouse, deliveries will be delayed
Let's go through these one by one as well.
Disadvantage 1 of using FBA: Fees apply
Since they handle everything from inventory management to shipping, a corresponding service fee applies.
There are two main types of fees.
"Shipping Agency Fee"and “"Inventory Storage Fee"That's it.
Please see the details below for more information.
▼FBA Pricing Plans
http://services.amazon.co.jp/services/fulfillment-by-amazon/fee.html
Disadvantage 2 of Using FBA: You Must Ship to an Amazon Warehouse
・Entering product information
・Applying labels to products
This will result in the following man-hours, among others.
Next, the products...Shipping fee to the warehouseDon't forget that, either.
Disadvantage 3 of Using FBA: Once a product is shipped to an Amazon warehouse, it’s difficult to change its condition
This might be a little hard to understand if you've never done this kind of work before, but,
When you apply to send items to an Amazon fulfillment center, you will be asked to enter the “Item Condition.”
For example, let's say you're listing a single used book.
We listed this item as "Like New" when we received it.
After a while, I was able to get my hands on the same used book.
I'd like to list that book as well, but it's in "like-new" condition.
So I'd like to change the condition of my current listing to "Good"...
In cases like that, onceYou cannot change the condition unless the item is returned to you from the Amazon warehouse.。
I don't think cases like this happen very often, but it's something to keep in mind.
Disadvantage 4 of Using FBA: If There’s a Problem at an Amazon Warehouse, Shipments Will Be Delayed
Amazon has several FBA fulfillment centers in the Kanto, Kansai, and Kyushu regions.
If an emergency occurs at the warehouse where the products are stored, deliveries will be delayed.
To be honest, the risks are no different from when I handle the shipping myself, but,
I’d like to at least know which Amazon fulfillment center my products are currently in.By the way.
Check the pricing plan for the item you want to list
As a seller, how can I...What are the benefits of keeping costs low?
I think this is the point that really concerns me.
Let's start by checking the fees for the items you want to list on this page!
▼FBA Pricing Plans
https://sellercentral.amazon.co.jp/hz/fba/profitabilitycalculator/index?lang=ja_JP
Please feel free to contact us if you're considering listing an item.
