Nine University Reviews – Advantages and Disadvantages of Using Amazon FBA
There has been a real spike in the number of people who are looking at studying courses which can help them when it comes to launching an Amazon FBA business. Much of this is because of the high standard of the courses that are out there, and you only need to look at the Nine University reviews online to get a flavor for just how happy their students have been with the Amazon FBA course that they operate. The reason for this spike is that more and more people are beginning to understand what a great opportunity running a business with Amazon FBA can provide, and these are some of the advantages and disadvantages of launching such a business.
Advantages
We’ll start with the clear advantages of an Amazon FBA business.
Cost Saving
Although Fulfillment by Amazon does cost money to be part of, the savings which are passed onto businesses will apr exceed the amount that is paid. Businesses can save money in website costs, using Amazon instead of their own channel, they can save money when it comes to warehouse storage as Amazon will take charge of that and they will also save money on staffing and time spent on shipping and handling returns.
Customer Service
Amazon are experts when it comes to handling shipping and management fulfillment and this alone is enough to put smiles on the faces of the customer. Businesses who use FBA can count on the expertise and professionalism of Amazon in ensuring that their customers are given all of the support and the efficiency that they expect.
Simple Growth
Many businesses face issues when faced with a spike in demand, and they struggle to manage their growth as a result. When using FBA however businesses needn’t worry about this as increased demand can be very simply handled by Amazon, leaving the business to worry solely about manufacturing and production.
Disadvantages
There aren’t many disadvantages of using Amazon FBA but there are a couple of drawbacks which people should bear in mind before they decide that this is the right route for them.
One drawback for businesses who have slow selling products is that storage fees can very quickly rise if the goods aren’t moving in and out of the Amazon warehouse with speed. After 6 months of storage costs can rise which is why it always makes sense to invest in profitable and popular items.
Another drawback which some struggle with is seeing a higher level of returns, and that is down to the efficiency of Amazon and how easy it is for customers to make those returns. Now admittedly Amazon do handle those returns but the point is that a business could lose potential sales as a result of those returns.
The advantages far outweigh the disadvantages and this of course is why so many people look to launch an Amazon FBA business where they can find solid levels of success.
