8 September 2021
Don’t let FBA scare you away
“FBA used well could be exactly what your business needs to get to the next level or to scale on Amazon”
Ted Gibson, Head of Client Strategy at Maze-One.
There is a lot involved when selling on Amazon. One of the key elements is Fulfillment by Amazon (FBA), which can be a challenge for Amazon Sellers, as we know from experience. In this article we would like to put FBA under the spotlight and show how Maze-One can help brands with FBA.
Ted Gibson answers some common questions.
- Why is FBA so negatively exposed? Is FBA that bad?
“The problem a lot of businesses have is that they think of Amazon as a supplier, like a supermarket for example. Amazon wants sellers to use it as your business’ primary sales stream and even as your primary warehousing facility, whereby you fulfill off-Amazon sales through them as well. FBA is the facilitator program for this. In using FBA you need to play by Amazon’s rules, more so than when your on the Merchant Fulfilled Network (MFN). That’s neither a good or bad thing, but, as a business owner, you need to decide whether its right for your company and whether your prepared to go all in”.
- What are the real challenges for a seller and what deserves extra attention with FBA?
“Knowing your supply chain and the times it takes you to turn product around is essential. Amazon provide you with a storage limit based on your performance using metrics like your sell-through rate and excess inventory numbers. So, the better you score the more stock you’ll be allowed to send in etc. Unfortunately, this takes time, as a new brand to Amazon you will most likely get offered a low limit as Amazon can’t predict how successful you’ll be. If you sell well and perform well against your inventory score then you’ll be able to sell more.”
- A new Seller on the Amazon platform: what do you recommend the company to do?
“Content is king. Upload your product range and optimize your listings to the best of your abilities. Concise bullet points, using lots of keywords, well written titles, x5 images and a video will set you up for success”. Maze-One is always within reach to help your brand with the best content, A+ content and how to get a high IDQ score.
- Is FBA still profitable 2021?
“Absolutely. FBA is Amazon’s preferred sales route as it promises the best end customer experience. The program will remain fully supported and will be constantly improved by Amazon. Amazon’s unique benefit to you as a seller is customer access. There is no other platform in Europe or the US that can get you access to such a large number of potential customers around the world. As such, FBA is the best route to these customers and, done right, will result in strong business results over time”.
- If you can give one tip regarding fulfilment, what would that be?
Familiarize yourself with the Account Health page. Amazon tracks your performance in relation to various metrics and can take action against your account if you fall foul of any of these. This can happen very quickly so knowing what to look out for and how to fix it is very important.
“Amazon’s end goal is to create truly global selling where you can ship something into a fulfilment centre local to you and sell it everywhere across the globe. So, whether you can believe it or not, it’s still early days for the development of FBA meaning the opportunity available is still massive!”