ATLANTA, Sept. 26, 2023 – Ecommerce businesses have many options for platforms they can use to launch, run and grow their operations. TruPro Elites, an ecommerce consulting agency, shares insights on both the advantages and challenges of using the Fulfillment by Amazon system to start a business.
TruPro Elites notes that Amazon’s position in the global ecommerce landscape provides superior fulfillment and logistics capability, with a sophisticated supply chain that permits efficient storage, packing, and shipping of products. That allows sellers to focus on core aspects of their business.
“It’s better to use Amazon’s platform to build and scale a brand than to start on another platform, because it will save you on marketing costs and traction when starting since Amazon is the world’s largest and trusted online retailer,” said Jenssy Hernandez, COO of TruPro Elites.
Businesses gain advantages by using the FBA service as ecommerce experiences rapid growth. The FBA program automatically qualifies for Amazon Prime, a prestigious offering that boasts over 200 million members worldwide. Prime members are known for their higher purchasing frequency and above-average expenditure.
“Amazon’s sheer size and reach make it an unparalleled platform for selling,” said Hernandez. “By choosing FBA, you are joining a marketplace that claims more than a third of the entire U.S. online retail market.”
The system also delivers strong results. Almost nine out of 10 (89%) of Amazon sellers are profitable using the FBA program, according to junglescout.com. Despite rising costs, 37% saw their profits increase in 2022. Three out of four sellers indicated profit margins above 10%, and more than half said margins rose above 15%.
The firm summarizes the benefits of using Amazon as your ecommerce platform as follows:
- Market Dominance: Amazon’s size means an unparalleled platform for selling, a marketplace that claims more than a third of the entire U.S. online retail market.
- Fulfillment and Logistics: Amazon’s supply chain provides efficient storage, packing, and shipping of your products.
- Amazon Prime Benefits: Products automatically qualify for Amazon Prime with over 200 million worldwide Prime members.
- Global Expansion: Over 175 fulfillment centers worldwide and 20 international marketplaces.
However, TruPro Elites notes there are associated costs with the FBA program, including storage fees, fulfillment fees, and other additional charges that can eat into profit margins. The challenges of using FBA include:
- FBA Fees: These include storage fees, fulfillment fees, and other additional charges that can impact profit, especially if selling low-margin products or experiencing slow sales periods.
- Return Policy: Customers can return products with the sellers responsible for returns processing fees.
- Product Restrictions: Amazon’s strict guidelines and restrictions on hazardous items or those subject to legal regulations may require compliance requirements.
- Time Commitment: Running and fulfilling an Amazon store requires a full-time commitment, because continuous efforts to maintain the store are needed and also to scale it.
TruPro Elites assists investors and corporate professionals to create passive income streams and discover financial freedom with trained and skilled managers who help build and run an Amazon store. For more information on TruPro Elites and its commitment to getting the best results, please visit https://www.truproelites.com.
About TruPro Elites
TruPro Elites is an Atlanta-based ecommerce consulting agency established in 2021. Our goal is to assist individuals in achieving long-term sustainable financial and lifestyle freedom by providing reliable passive-income options that yield consistent results and predictable returns. Our proven expertise has helped create over 100+ Amazon stores, and our motto, “Trust the Process,” reflects our commitment to achieving the best results for our clients. Our team coaches and trains individuals to successfully run their own Amazon storefronts using a calculated approach to determine the right products to feature and sell, along with offering done-for-you and placement services. Choose TruPro Elites to guide you on your path to financial independence.