Hello, my name is Myra from WA and this is my first ever content that I am creating for my website.
The reason I selected my website name, is that I am a seller at Amazon Seller Central for over a year since May 2018. I have previously signed up on amazon as a seller from 2015 when I last tried to do it but it was a fail because I did not know what kind of stuff that I would like to have for my store. Everything was a challenge to me and it still is to this very moment, but I am learning a lot more now than I have done before in the beginning. Plus, I am always up for new challenges at what life throws at me. So, I tend throw back at life a bit harder than I ever did.
As I was saying, welcome to my new site about myamazonconnect.com as there will be more content waiting to upload soon…
In case you need to know….
Amazon.com is a vast Internet-based enterprise that sells books, music, movies, housewares, electronics, toys, and many other goods, either directly or as the middleman between other retailers and Amazon.com’s millions of customers. Its Web services business includes renting data storage and computing resources, so-called “cloud computing,” over the Internet. Its considerable online presence is such that, in 2012, 1 percent of all Internet traffic in North America traveled in and out of Amazon.com data centers.
Get Big Fast
In 1994, Jeff Bezos, a former Wall Street hedge fund executive, incorporated Amazon.com, choosing the name primarily because it began with the first letter of the alphabet and because of its association with the vast South American river. On the basis of research he had conducted, Bezos concluded that books would be the most logical product initially to sell online. Amazon.com was not the first company to do so; Computer Literacy, a Silicon Valley bookstore, began selling books from its inventory to its technically astute customers in 1991. However, the promise of Amazon.com was to deliver any book to any reader anywhere.
What is Amazon known for?
Amazon is known for its disruption of well-established industries through technological innovation and mass scale. It is the world’s largest e-commerce marketplace, AI assistant provider, and cloud computing platform as measured by revenue and market capitalization.
What are the disadvantages of Amazon?
Disadvantages of Fulfillment by Amazon (FBA)
- CoWhat are the disadvantages of fullfiment of Amazon (FBA)?sts: FBA is not free. …
- Fungible Items: These are the items those are identical and can be replaced with each other. …
- Labeling: …
- Competition, Branding and Customer Loyalty: …
- Lost Marketing Opportunities: …
- Payments: …
- Tax Compliance
FBA is not free. You have to shell out a pretty penny to keep your service going. The initial setup costs are inexpensive, the rates better than what you can negotiate, however, as the contract progresses you might have to spend well. Now, this might be an advantage or disadvantage for your business depending upon the type, value, and volume of products you sell. It is advisable to use FBA for high volume products, or use FBA when you do not have the resources to handle orders yourself, etc.
You give up a lot of control of your inventory when you send it to Amazon. This is because; Amazon ships and packs your products the way they want.
Since products can be of different quality, this can lead to negative reviews for a Seller; because the customer might have selected a seller for a particular reason. In a few cases, damaged or counterfeit items were shipped. Although the seller was not at fault, they had to face rather harsh consequences.
Amazon mandates its sellers to label every product (where fulfillment is done by Amazon) with a unique product identifier that has its own barcode. Although a banal task, this would take a considerable amount of time and money. You would have to buy labeling stickers, bags & boxes and a barcode scanner just to pack and ship your items to Amazon. If the labels are not visible or properly attached then Amazon might even return all items, making it even more difficult to profit.
Competition, Branding, and Customer Loyalty:
You have to face the fact that Amazon itself would be your prime competitor among the plethora of other similar sellers like you. Moreover, there are not many branding options available on Amazon; the only things you can control being the product photos and description (if you are selling only via Amazon). Everything else is Amazon-branded and customers rarely get to see the end vendor. Hence, their loyalty is associated with Amazon and not your brand.
Lost Marketing Opportunities:
Amazon does not let sellers capture buyer’s email addresses. This deprives you of opportunities to promote your brand, up-sell and cross-sell products, launch new products, and more through email campaigns.
Amazon settles payment with sellers once every 14 days; until that time, the money is held in an escrow account to cover the cost of possible returns. This means that you will not be paid for nearly two weeks, which can have an impact on your payment cycle.
Amazon has many warehouses. More often than not, sellers are not notified as to where their product is stored. With many states in the US having different policies towards items stored, sellers are unsure about the sales tax compliance.
Using third-party fulfillment centers limits your control over inventory, although it is your item to sell. In addition, you will not completely know the details of the transaction. Always choose wisely!
As always, happy shopping!
Well, now that you have gotten to know everything there is about amazon and amazon FBA, I would like to thank you again for taking the time to read this articles of my content that I have written so far.