- You need to spend money to use FBA
Amazon charges FBA merchants for both stockpiling and fulfillment. So remember that you’ll be paying “lease” for the space that your items possess in the Amazon distribution center and also the expenses related with satisfying the request.
- You end up facing intense competition
Amazon has vendors worldwide. Hence there would always be vendors who will snatch your customers by producing at low costs. Therefore survival is a lot more difficult than it seems because of the intense competition.
- There is no Quota on Sales
You may feel that an organization as vast as Amazon will oblige you to move a specific measure of merchandise consistently if you need to be a piece of the FBA program. Probably not. With FBA, you can offer just a couple of items a month, or you can offer a large number of items consistently.
- Enormous capital is required
Alibaba is a business person’s closest companion. In any case, unless you have stockpiles of money lounging around, expect that MOQ (least request amount) of 1,000+ units and $200+ shipping from China to gobble up your valuable capital like an eager pit bull. With constrained startup capital, you are certain to be limited to local providers, which is the place 90% of your rivals will get their merchandise also. Bringing in is an enormous advantage–if you can bear the cost of the danger of striking out a couple of times
- You are free to use alternatives
You are more than welcome to offer your items on Amazon without utilizing FBA. A few dealers find that they can deal with the entire pick, pack, and ship prepares them for less cash than it would cost to utilize Amazon’s administration.
- There are hidden costs of shipment
Despite the fact that you’re a delivery cost to clients is heated into Amazon’s fulfillment costs, regardless you’ll have to fork over some money to get your items to the fulfillment focus. In this way, in fact, you are as yet managing shipping. However, just to a restricted degree.
- If stocks remain in store for long, you have to pay for it
On the off chance that your stock moves gradually, you may be slapped with a long haul stockpiling fee. Items left in the distribution center for longer than six months are liable to the long haul expense.
- Amazon has not placed a physical limit on shipment
Amazon doesn’t put any confinements on how much stock you ship to a fulfillment focus in one shipment. That is uplifting news since it’s conceivable that your transportation expenses would be considerably higher with a few, littler shipments than with one extensive shipment.
- Be ethical
When you offer on Amazon, you need to play by the organization’s standards. If you don’t, then you could lose your record. The reasons could be; Having more than one dealer account, Controlling surveys, Low-quality items or Disregarding protected innovation laws.
- Don’t expect too much!
It appears that selling online is an easy way to earn money and sitting back at home you would be able to earn bunches of dollars through FBA. However, you barely get any profit margin and becoming filthy rich remains just a dream!