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FBA Advantage

What are the benefits and drawbacks of shipping goods directly to Amazon FBA (IE Amazon's Fullfilment Centers)

Benefits

  1. Short Transfer: Amazon's automated system usually routes your goods to the nearest FBA center to where the goods are located. This cuts your costs dramatically by saving the distance needed to ship it directly to your facility. 
  2. Quickest Last Mile Delivery: Amazon has an internal network of hubs, trucks, and centers that can disburse goods. The benefit you have from this is that your products can arrive at a consumer's door as short as 1 hour after they place the order on Amazon! This gives you a very strong advantage over shipping the goods yourself. It gives a huge incentive for customers to shop your products through FBA then through your shipping network.
  3. Cheap Freight: Amazon partners with and has their own freight carriers that will give bargain rates for your goods to be shipped into Amazon's centers.

Drawbacks

  1. Multiple Destinations: Amazon, at times, requires you to disburse goods to multiple fulfillment centers to save on their costs of transferring them for you. This may result in higher processing and shipping fees. (You can avoid splitting shipments by using "Inventory Placement", but that comes with a fee)
  2. Sight unseen: You will not be always be able to see what is going on with your goods. 
  3. Delays, Lost Inventory, Limited Access: Since Amazon operates such a vast network, and receives countless shipments on a daily basis, your goods may end up out of your hands for a little while if Amazon should run into an issue.

DISCLAIMER

Palletfly.com only provides Amazon comparison information and other projections to help you do research quicker. THE INFORMATION PROVIDED SHOULD NOT BE RELIED UPON AND IS NOT BASED ON RELIABLE INFORMATION. Palletfly.com is not responsible for any information provided or inaccuracies. Using such information is at your own risk. Palletfly.com makes no representations regarding your eligibility or ability to sell or resell products on the Amazon marketplace or anywhere else. Please make sure to do your own research prior to purchasing any products on Palletfly.com. Palletfly.com is not affiliated with Amazon.com.


Pallet Fly is an innovative platform that is geared towards streamlining and optimizing the supply chain experience in product distribution. Our website was founded with one goal in mind: Bring innovation to supply chain. With the many evolving marketplaces that have sprouted through the internet, there comes a great change in how consumer products changes hands. From Amazon to Walmart, brick-and-mortar to Ecommerce, all consumer shopping has taken a large drift from what was knows as traditional retail several years ago. The evolution of how products are sourced on a wholesale level has taken far longer to progress.

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