Amazon FBA Review

A full review of Amazon FBA as an ecommerce solution.

Mark Hammersley

Last updated 6o November 2020

Amazon FBA

3.4 Stackupp rating

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Pricing from

$ 0.99 / month

Free Plan?

Best for

online sellers with limited product ranges. It is also a good option for retailers with established stores that want to take advantage of Amazon’s significant reach.

Amazon FBA (Fulfillment by Amazon) is Amazon’s in-house fulfillment service for sellers. Instead of taking care of the storage and delivery of products themselves, sellers who opt for Amazon FBA can use Amazon’s warehouses and logistics networks. This can significantly reduce financial and administrative burdens.

It’s important to recognize that Amazon FBA is an additional service for Amazon sellers. It will only meet your needs if you already intend to sell products on Amazon. It is not a self-contained ecommerce solution that will allow you to list a wide array of different items and keep all the revenue from sales. What’s more, Amazon takes a significant cut of the final purchase price. You will also have to compete with other sellers in the marketplace.

With all that in mind, it’s essential to weigh up the benefits associated with access to the world’s single largest retail market with the cons of hefty fees, limited control, and high levels of competition.

Generally speaking, small retailers that don’t want to deal with the hassle of managing an entire ecommerce store (and all the technical, marketing, and logistical tasks this involves) will find a lot to like in Amazon FBA. Equally, retailers with established stores that want to bring their best products to a broader market should consider Amazon FBA.

Finally, keep in mind that running a successful business on Amazon FBA requires a unique skill-set. It’s a different ballgame to running a “traditional” ecommerce store, and this should be accounted for. You will need to familiarize yourself with topics like competitor research, keyword analysis, product page optimization, results page optimization, and so on.

Is Amazon FBA right for you?

you are a small independent retailer who doesn’t want to run their own store and handle complex back-end logistical tasks. Amazon will do a lot of the hard work for you while providing access to a large retail marketplace.

Advantages

Access to one of the largest retail markets in the world.
Limited logistical and administrative burden.
No need to run your own ecommerce store.

Drawbacks

High listing and fulfillment fees.
Lack of control over design of product pages.
Relatively high startup costs for initial order.

Ease of Use

Rated 4.5/5 for Ease of Use

Amazon FBA is managed through “Seller Central”, an online dashboard that all Amazon merchants use to manage their inventory, product listings, storefronts, and analytics.

The interface is very user-friendly, and you can add and configure products quickly. There is a substantial amount of help documentation online through the “Seller Central” portal and Amazon also offers an “Amazon Seller App” for mobile devices. All in all, it’s a very good option for beginners, along with retailers who have limited technical expertise.

Configuring fulfillment options is also a straightforward, linear process and is completed within the “Seller Central” area once products have been added to a catalog.

Finally, you can manage your own independent store, which will show all your Amazon listings, via the “Stores” tab.

What customers are saying...

"This website is good for beginners who want to earn."

"This platform is the most solid on the web to sell products online."

"They have never failed to pay me and they have been supportive when deviant customers have tried to steal from me."

Design Templates

Rated 2.5/5 for Design

Amazon doesn’t offer much in the way of design freedom. Sellers can only customize specific product page elements, such as the title and description, images, and in-depth “body copy”. The layout and overall page design cannot be altered.

Once they have registered their brand, sellers can also open their own Amazon storefront, which affords a greater (albeit still limited) level of design flexibility.

If you’re looking for complete control over your store, you will likely find that a self-managed ecommerce solution like Shopify or WooCommerce better fits your needs.

Amazon FBA Examples

Rogaine
Zappos
Adidas

How much does Amazon FBA cost?

Rated 3.5/5 for Pricing

“Value for money” is a slightly mixed bag when it comes to Amazon FBA. It’s important to stress that all serious Amazon FBA sellers will have to purchase a subscription to an Amazon Seller account. There are two plans available. The “Individual” plan is free, but a charge of $0.99 per item sold is collected. The “Professional” plan is $39.99 per month.

On the surface, these figures don’t seem significant. It’s when you get down to the nitty-gritty of item fees that a more precise picture starts to emerge. FBA sellers have to account for several charges: a referral fee (which can be up to 15% of the item sale price, a storage fee), storage costs, and a fulfillment fee. All of these can quickly add up, so it’s essential to familiarize yourself with the fine print and do all your calculations to ensure you can make a sustainable profit.

Help and Support

Rated 3/5 for Help and Support

Amazon provides support to sellers through online tickets and has published extensive online documentation and training for new users. There is also an active community forum where it’s possible to get answers to questions.

While the support options are reasonable, we would like to have seen phone and email support in conjunction with the options already on offer.

The Bottom Line

The FBA (Fulfilment by Amazon) program has done a lot to open up Amazon’s sizable marketplace to new sellers and streamline the often-complex process of storing items and fulfilling purchases.

If you are starting out in the ecommerce space, and find the prospect of running an independent store daunting, then Amazon is a viable option. Equally, if you already have an established online presence and want to reach new customers, selling your top-performing products through Amazon is also worth considering.

Just keep in mind that running a profitable Amazon FBA business is different from running your own online store. It requires a unique skill-set and the ability to evaluate competition and find gaps in the market.