Amazon FBA is a program where sellers ship products directly to customers from their own warehouses. Amazon handles customer service, returns, and shipping. Sellers set their own prices and have complete control over inventory levels. In addition to selling on Amazon, they can sell on other e-commerce platforms at no additional cost.Is being an Amazon seller worth it? Yes! Find out why.
Why is it Worth Being an Amazon Seller?
Nearly a quarter (22%) of Amazon’s revenue, which increased from $386 billion in 2020 to a staggering $469 billion in 2021, comes from 3rd party vendors. Of those 3rd party sellers, Fulfillment by Amazon (FBA) is used by 89 percent of them to run their Amazon business.
No matter his or her level of e-commerce knowledge, anyone can create an online store using the fantastic business model known as FBA and list products to scores of potential customers.Go over some of the benefits of why it is worth being an Amazon seller.
You can manage to sell to Amazon’s devoted client base
With more than 300 million Prime members globally, Amazon.com receives close to 3 billion visits each month. You can list things on a website with millions of daily visitors as a modest, one-person company.
Amazon handles logistics when you use FBA
When you use Amazon’s FBA program, you send your inventory to one of their fulfillmentcenters, and they take care of order fulfillment, storage, and even customer service.
You can benefit from Prime shipping
When sellers make use of FBA to complete their orders, their products will be awarded the Prime badge and have access to the sizeable Prime consumer base on Amazon who only makes purchases from Prime sellers.
How Competitive Is It to Sell on Amazon?
There will always be competition in any domain that you choose, and this is a good thing since it implies there is a demand for your goods. Selling on Amazon can be beneficial for new sellers even today, despite the fact that competition has grown over the previous few years. In fact, the US marketplace is thought to be the least competitive on Amazon if you sell there.
Compared to a normal modest brick-and-mortar firm, Amazon sellers start to make money considerably sooner. While 20% of Amazon sellers claimed they managed to earn a profit in less than 3 months, it may take brick-and-mortar firm owners 2+ years to make any profit. Although Amazon is not a “get rich quick” program, it is entirely feasible to begin making money right away.However, not all sellers can make profits so fast in this manner. It can take a little longer for new sellers to start seeing a profit. 10% and 22% of sellers, respectively, said it took them between three and six months and one and two years, to break even. That happens frequently with private label products, especially when they are first introduced.
You must invest the necessary amount of effort and time if you want to sell on Amazon. If you are consistent, it will not take you more than three months to launch your first product.
