3 Reasons Why Amazon FBA Should Be Part of Your Business Plan – Reason #3

16837514375_f67bf8b514_zIn today's ever changing e-commerce marketplace businesses, large and small, need to make changes to continue to grow successfully. In this series, I'll share three reasons why Amazon FBA should be part of your business plan whether you are a seasoned e-commerce seller or new to online selling. If you haven't already, be sure to go back and read Reason #1  & #2.

Reason #3:  Amazon FBA Increases Your Profit Potential

Why are you in business? To make the world a better place? Possibly. To bring your inventions to the masses? Could be. When it comes down to it, most business owners are looking to turn a profit on their investment each year. Let’s face it, it wouldn’t be much fun to lose money after spending countless hours on your business, would it? 

Amazon has one of, if not thee, largest most efficient distribution channels in the world. They have efficiencies in place that a small business owner can only dream about. Amazon has a lot to offer; including a customer base that is willing to pay more for products.

Why are Amazon buyers willing to pay more? When you go online to look for an item to purchase where do you head first? Based on Amazon’s growing sales figures each year you aren’t the only one to select Amazon.com. Why do buyers select Amazon over other online retailers?

Selection – Amazon’s vision is “to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” Why wouldn’t a buyer shop at the store with the best selection?

Availability – Not all products are available everywhere. Some products are regional while others have limited distribution set by the manufacturer. These products are only available in a certain section of the country. When people move away from their home town they still want to have access to products from their home region.

Speed – Prime members get free 2-day shipping with an option to upgrade to 1-day shipping for an additional $3.99. Turnaround from time of purchase to time of shipment is also very quick so even those without Prime shipping options get their product in a reasonable amount of time.

Customer Service – Amazon prides itself on customer satisfaction by providing a customer-centric environment with a no hassle return policy and a quick to respond customer service team.

Free Shipping – While many retailers periodically offer free shipping on purchases over a certain amount, Amazon offers the option all the time. Prime members get free 2-day shipping every day and non-prime members get free shipping with orders of $35 or more. With shipping fees on the rise, free shipping draws in customers like kids to a candy store.

Amazon Prime – This program provides many services to its subscribers. Most notably however is free 2-day shipping, $3.99 upgrade to 1-day shipping for only $99 a year.

According to Lisa Suttora in her article “Sourcing Products to Sell on Amazon: Understanding the Amazon Customer”, Amazon customers are willing to pay for quality products. They are not on the hunt for the best deal or cheapest price and Amazon buyers also replace items with more frequency and adapt to newer technologies and product offerings more quickly. This sounds very different from the buyers that eBay sellers are used to.

Amazon customers want to find any product they are looking for, have it delivered to them promptly with no hassle customer service if something goes wrong. They are willing to pay a premium for this service. Amazon sellers are able to ask and get higher selling prices for their items because Amazon buyers pay for convenience. As a seller, you can charge more for an item on Amazon than any other platform which can quickly increase a seller’s profits.

Is selling on Amazon right for your business?  If you are ready to change YOUR focus, be more flexible in YOUR life, and make YOU more money then Amazon FBA can be your path to success. To get started selling on Amazon check out Amazon FBA Launch Pad or feel free to post any questions in the comments below or send me an email at [email protected].

What are you doing TODAY to move your business forward?


Photo by: Got Credit (Flickr)


Interested in selling on Amazon with Fulfillment by Amazon (FBA) or know someone who is? Not sure where to start?

Amazon FBA Launch Pad is the most current and comprehensive step-by-step guide to LAUNCH and GROW your Amazon FBA business from novice to startup success without spending a fortune. To find out more information click HERE.

If you are looking for more specialized one-on-one direction to grow your business and or manage your life balance, I highly recommend heading over here and checking out the individualized coaching available from the amazing  Kristin Ostrander.

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