Drawbacks of Fulfillment by Amazon

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Hello everyone.

Now, let’s move forward and look at the drawbacks of fulfillment by amazon. I won’t call it a bad side but a dark side.

FBA is a very good strategy and important for all. But you must know the dark side of this too. Not many people discuss or talk about this.

So, come let’s make this training program neutral and knowledgeable.

Well, the first dark side is that “account may be suspended”. Look, guys, I am not demotivating you, okay. But there are some things. The most common reason for the suspension is “inauthentic inventory”.

Now, suppose let’s say you are trying to ship through FBA, there are some terms and conditions for it. If you are getting more negative reviews and your selling is also negative, or if you have added an “inauthentic inventory”, well, the “most common reason for the suspension is the inauthentic inventory”. This means that you are not fulfilling the inventory as you promised before. In such scenarios, your account status will be shown as suspended.

This is quite a tragic incident. But there is always a way to avoid anything. You can save yourself by providing authentic inventory. You have to fulfill every criteria mentioned in the terms and conditions of the FBA.

Sometimes, it happens that the low scale or medium scale business owners fail to fulfill the terms and conditions. It happens sometimes. Because look, it is not necessary that everyone will have the capital at all times. Sometimes, even the major business owners don’t have the capital to make the product again and maintain the inventory. So, this might happen sometimes.

I would like to give you a remedy for this. Look, there is a quality page on FBA’s site, you must check the quality page every 15 days or every week. Before suspending the account, they do send a lot of notifications and warnings.

They will notify you that you are lacking in so and so things, you are lacking in maintaining the quality. All you have to do is, act on the notification and maintain the quality. It’s obvious that if your quality is maintained, why would they suspend your account?

But, if you don’t check the quality page and maintain the quality, trust me you will eventually lead to account suspension. Okay. (Understood?)

Now, the second drawback is “it will decrease your profit”. Yes, less profit. Why? Because look, commission, and storage cost is high. Now, suppose, your product is larger in size but the value you should get on its behalf is less, due to which the profit margin is affected. 

Don't worry at all. In the beginning, you will feel that the profit is declining but if you plan smartly, then you will have the bright side of this too. The customers will be satisfied through fulfillment by amazon. Now, you have to manage your capital and your earnings. If you succeed in managing certain things, then trust me you will overcome this drawback too. You can cover this dark side through fulfillment by amazon. Okay.

4:09

Now, the next drawback of FBA is “critical items are not recommended”.

Yes, there are many items that are not so easy to handle like glass. Now look, suppose let’s say you successfully delivered your glass to the FBA but due to some or any other reason, you get a crack or a dent in your glass or the product is damaged due to any reason.

Generally, FBA will try to handle it with care but still, we are still humans. And the one handling the product is also a human. What will happen if they miss something? What will happen?

Look, the best remedy is to take care. So, pack your product appropriately, and choose a shipment method where Amazon will pick up the product from your designated location like the office or the business address and deliver it directly to the customer. Or you can deliver it yourself as a seller through different courier methods.

So, for this drawback, I just told you a special remedy.

If the FBA handles it, there might be some errors in handling your product. They have experienced this.

Recently I saw it on the news and I personally talked with many sellers. I would not recommend selling critical products through FBA. But, if you still wish to ship through FBA, it is entirely on you.

I am not demotivating you or scaring you off. I am not saying anything bad about the FBA either. It happens because the people working at FBA are also humans.

There is a possibility that while handling a critical care product, it might get a crack. So, you have to be careful while delivering the product to the customer. Well, it is your responsibility and the FBA’s responsibility.

The customer should get the product in the perfect condition, that is yours and amazon’s responsibility.

Therefore, while delivering the critical products, you have to pay more attention and be more careful.

(06:35)

Now, friends, there is one more drawback. What is it?

Well, this drawback is not directly connected to FBA, but yes, this is definitely something that you have to avoid. And you can avoid this with the help of FBA. Friends, this is a benefit, but a dark side too at the same time”.

Okay, so the benefit is “you can limit your purchase by particular individuals”. Yes, now suppose I want to purchase your product, what is the limit of the product that I can purchase?

So, suppose I want to buy your product in hundreds, and they have the COD option, I received the payment through credit, debit, or COD, and I returned the product. What will happen? Well, this is a negative thing that will have a negative impact on your business.

Now what happens is that your competitor can do such a thing. Yes, you have to save yourself from this because your competitor knows you are doing a good business, they might use this method to throw a bad impression on your business. So, FBA can help you out with this. What will they do?

Amazon has the authority to add a restriction on how many products a user can buy with one user ID. If your product falls under the category that sells in bulk, then this might be a very good strategy for you. And you need to save yourself from such incidents because the competitors are always going to be there, and I honestly can’t tell which competitor might harm you.

But you can definitely save yourself from this, by limiting your purchase by individuals. So, use this method to limit your purchase so that you are safe from the competitor's tricks. And this way, we can safely deliver our product to the customer so that we don’t get a negative review and our name is affected in the FBA. (I hope this much is clear)

Okay, friends.

Look, friends, through this training program I am trying to clear all your doubts and confusion.

But still, if you have any queries or comments, click the discussion button below the video and post there. This way, you will be able to connect to fellow learners and discuss the course. Also, Our Team will try to solve your query.

Well, yes, no matter what city or country you live in, you can ask us in any language and we will make sure to answer your question for you.

So, See you there with the next topic at the next session.

Thank you very much.

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