Secured, Affordable & Reliable Despite the benefits of Amazon FBA,there are some drawbacks.Consider these three.
1.Increased frequency of returns
There is a risk the ease of returns through Amazon fulfillment may increase the frequency of returns for a small business.While returns can be somewhat controlled by establishing clear expectations for products with descriptive product listings,there’s always a chance that consumers will take advantage of Amazon’s free and easy returns.
2.Unbranded product packaging
Packaging is important to the modern consumer,so much so that 72%of Americans claim that product packaging design influences personal purchasing decisions,and 81%agree that package design influences gift selection.So,imagine the potential disappointment when consumer orders of your business just to receive typical Amazon packaging.
All orders dispatched by Amazon FBA will have Amazon’s branding.This can make it difficult to impact brand awareness.However,the fact that your product is on Amazon also elevates brand awareness.
3.Keeping track of inventory
It can also be incredibly difficult to keep track of the inventory you store in Amazon's fulfillment centers.If you have an inventory management system,you'll save countless hours with automation,knowing how much and where your inventory is stored within Amazon's fulfillment centers so you don't end up with dead stock.
4.Additional monthly costs
Any ecommerce business that’s contemplating third-party warehouse or logistics will expect additional monthly costs.However,monthly fees for Amazon FBA can pile up over time,especially storage fees for unsold products.Sellers are responsible for poly bagging and bubble wrapping fragile products that are sent to Amazon fulfillment centers,and are charged a removal fee and disposal fee for any unsellable product that’s been deemed defective or damaged.
