Disadvantages of Amazon FBA
Posted: Sun Dec 22, 2024 10:13 am
Unfortunately, despite all the advantages that Amazon FBA offers to a seller, nothing is entirely perfect, and this program is clearly not perfect either.
It is true that, in my opinion, the pros outweigh the cons considerably, but you should still be aware of them if you plan or are considering embarking on this adventure.
Some of the drawbacks are:
Fierce competition.
Commissions.
It requires great organization.
Payment intermediaries.
We see them in more depth.
1.- Fierce competition
It was to be expected, don't you think?
Selling on Amazon can be very, very profitable if your product is good and you do it correctly, so it is logical that thousands of sellers before you have had the same idea of selling their products on this marketplace.
Therefore, in order to compete in this market and make your mark, you need to have a long-term strategy.
It is essential that you plan well the steps you are going to take, where you want to take them and that you do not leave anything to chance.
This way, you will achieve better results.
2.- There are commissions
Amazon FBA offers many advantages to sellers, as we have just seen a few lines above, but unfortunately, all these benefits do not come for free.
Amazon has a bad habit of being a compan philippines phone code y and wanting to make a profit from its commercial activity.
What things, huh?
For every product you sell through Amazon, the company will take a predetermined percentage.
This percentage varies depending on the category to which the product in question belongs and can range from 7% for computer and electronic products to 45% for accessories for Amazon devices.
In this link you can find the price for each of the items depending on the category to which they belong.
Also, as I mentioned above, to sell on Amazon through this platform you need to create an account first.
For this, you have two options: the Professional Sales Plan and the Individual Sales Plan.
The first type of account, the Professional Sales Plan, has a monthly cost of €39.
By paying this flat rate you will be able to sell unlimited products, without having to pay the closing fee, which we will see below.
The other option is, a priori, cheaper.
The Individual Sales Plan is free of charge, but you will have to pay a fee of €0.99 for each sale you make.
Therefore, although this type of account is ideal for testing Amazon FBA, if you expect to close more than 39 transactions, it would no longer be profitable for you.
It is true that, in my opinion, the pros outweigh the cons considerably, but you should still be aware of them if you plan or are considering embarking on this adventure.
Some of the drawbacks are:
Fierce competition.
Commissions.
It requires great organization.
Payment intermediaries.
We see them in more depth.
1.- Fierce competition
It was to be expected, don't you think?
Selling on Amazon can be very, very profitable if your product is good and you do it correctly, so it is logical that thousands of sellers before you have had the same idea of selling their products on this marketplace.
Therefore, in order to compete in this market and make your mark, you need to have a long-term strategy.
It is essential that you plan well the steps you are going to take, where you want to take them and that you do not leave anything to chance.
This way, you will achieve better results.
2.- There are commissions
Amazon FBA offers many advantages to sellers, as we have just seen a few lines above, but unfortunately, all these benefits do not come for free.
Amazon has a bad habit of being a compan philippines phone code y and wanting to make a profit from its commercial activity.
What things, huh?
For every product you sell through Amazon, the company will take a predetermined percentage.
This percentage varies depending on the category to which the product in question belongs and can range from 7% for computer and electronic products to 45% for accessories for Amazon devices.
In this link you can find the price for each of the items depending on the category to which they belong.
Also, as I mentioned above, to sell on Amazon through this platform you need to create an account first.
For this, you have two options: the Professional Sales Plan and the Individual Sales Plan.
The first type of account, the Professional Sales Plan, has a monthly cost of €39.
By paying this flat rate you will be able to sell unlimited products, without having to pay the closing fee, which we will see below.
The other option is, a priori, cheaper.
The Individual Sales Plan is free of charge, but you will have to pay a fee of €0.99 for each sale you make.
Therefore, although this type of account is ideal for testing Amazon FBA, if you expect to close more than 39 transactions, it would no longer be profitable for you.