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A Complete Guide To FBA (Fulfillment By Amazon)

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Liz Hull

Liz Hull

Liz Hull is a writer for Merchant Maverick. In her three years with Merchant Maverick, she has tested and reviewed over 40 eCommerce platforms and published two ebooks on the topic of online selling. Liz has also been published in Startup Nation and Home Business Magazine Online. Liz has a BA in English and Spanish from George Fox University.
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    Erin

    We are considering selling our products on Amazon and it would be a new product for Amazon because we manufacture the material. Would you recommend FBA? How would we ever get enough material distributed to the warehouses? My initial reaction is to do self-fulfillment to see how difficult it is to keep up with the orders, then consider expanding to FBA if there is a lot of demand. Thoughts?

      Liz Hull

      Hi, Erin.

      If you’ve just started selling this product, it would perhaps be best to go the self-fulfillment route until you know roughly how much product you’ll be moving. Fortunately, since this will be a new product for Amazon, you won’t have to worry about winning the Buy Box (you’ll have it already).

      Also, since I wrote this article, FBA has announced that they won’t be accepting products from new clients until after Dec 19. You can read about that here. You should also note that FBA’s warehouses are currently quite full, and FBA has been taking action to reduce their inventory (in part by charging higher storage fees). If you can’t move product quickly, FBA can get expensive.

      However, you should also consider one downfall of selling on Amazon without FBA: Without FBA, you won’t be able to offer Prime Shipping, and Prime customers are heavily influenced by that particular option.

      So, there are reasons to go both ways depending on the specifics of your company, but from what you’ve said here, I’d suggest self-fulfillment at least at first.

      I hope that helps! Good luck!

      – Liz

        Erin

        Thanks so much for the information!

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