{"id":11522,"date":"2020-06-18T16:47:42","date_gmt":"2020-06-18T20:47:42","guid":{"rendered":"https:\/\/armchairarcade.com\/perspectives\/?p=11522"},"modified":"2020-06-18T16:47:43","modified_gmt":"2020-06-18T20:47:43","slug":"is-amazon-fba-worth-it-in-2020","status":"publish","type":"post","link":"https:\/\/armchairarcade.com\/perspectives\/2020\/06\/18\/is-amazon-fba-worth-it-in-2020\/","title":{"rendered":"Is Amazon FBA Worth It In 2020?"},"content":{"rendered":"\n

Granted, Amazon is undeniably one of the best ways of making money for new sellers<\/a>, but there are a few pitfalls you need to watch out for:<\/p>\n\n\n\n

1. Amazon FBA can be expensive<\/strong><\/p>\n\n\n\n

There are charges for both fulfillment fees and storage fees. <\/p>\n\n\n\n

You must track how fast your inventory sells or sits in the warehouse to avoid paying hefty sums as storage fees.<\/p>\n\n\n\n

Make sure also to calculate your return on the products sold after making the payment for Amazon fulfillment fees.<\/p>\n\n\n\n

It will clarify whether you are making a profit or running losses.<\/p>\n\n\n\n

2. Storage fees for long-term<\/strong><\/p>\n\n\n\n

Paying storage fees is not bad so long as your products are selling. However, when your product sits in storage for over six months, then it screams trouble. <\/p>\n\n\n\n

Amazon’s business is to sell and not store, so not selling and saving for too long can mean paying a lot of extra money<\/a>.<\/p>\n\n\n\n

When a product sits for too long in storage, sellers can expect to pay sky-high storage fees.<\/p>\n\n\n\n

3. Getting more returns<\/strong><\/p>\n\n\n\n

Amazon’s return policy<\/a> and the process has made it very reliable and easy for customers to make quick returns. <\/p>\n\n\n\n

You will find that many customers make impulse purchases, which can lead to higher rates of returns.<\/p>\n\n\n\n

4. Preparing products for shipment can be difficult<\/strong><\/p>\n\n\n\n

 Amazon maintains strict guidelines when it comes to preparing and shipping items to them. <\/p>\n\n\n\n

Accordingly, you have to enter the products accurately in the Amazon database, label it appropriately, and dispatch it to the right warehouse. <\/p>\n\n\n\n

The process can be time-consuming and tedious when you are doing it for the first few times.<\/p>\n\n\n\n

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5. Inventory accounting can be difficult<\/strong><\/p>\n\n\n\n

It is challenging to keep track of which products to order, which ones are still available, and which ones are not selling when nothing is visible to you.<\/p>\n\n\n\n

You will find it especially hard when you sell products on numerous channels.<\/p>\n\n\n\n

Count yourself fortunate if you have the ByteStand app as it is capable of automating inventory management between Amazon<\/a> and BigCommerce.<\/p>\n\n\n\n

6. Sales tax is difficult<\/strong><\/p>\n\n\n\n

Every state’s sales tax collection rules differ from one another in the United States.<\/p>\n\n\n\n

If your business caters only around one state, it is simple. However, Amazon’s various fulfillment centers are available in virtually every country. It means there is a constant shuffling of inventory between warehouses.<\/p>\n\n\n\n

So, there is no way of answering whether-<\/p>\n\n\n\n