As an online business owner, you’ve likely heard the term “Fulfillment by Amazon” (FBA) thrown around, but are you really sure what it’s all about? With so much misinformation circulating, it’s easy to get caught up in myths and misconceptions. In this article, we’ll reveal the truth behind 7 common Amazon FBA myths and give you the inside scoop on what you need to know.
Myth 1: FBA is only for big businesses
Fact: Anyone can start selling on Amazon FBA, regardless of their business size or scale. Whether you’re just starting out or already have an established brand, FBA is a viable option.
Myth 2: FBA is only for physical products
Fact: While physical products are the most common type of product sold on FBA, digital products like e-books, software, and courses are also welcome. In fact, digital products can be a great way to get started with minimal upfront costs.
Myth 3: You have to handle all customer service yourself
Fact: Amazon offers customer service support for FBA sellers, so you’re not solely responsible for handling customer inquiries. Plus, many sellers outsource their customer service to third-party companies.
Myth 4: You’re locked into a long-term contract with Amazon
Fact: No contracts are required to sell on FBA. You can start and stop selling whenever you want, making it a flexible option for entrepreneurs.
Myth 5: Amazon Will Promote Your Products for You
Fact: While Amazon does have a sophisticated algorithm for product placement and can provide some exposure through programs like Amazon’s Choice and Best Seller badges, it is ultimately up to the seller to drive traffic to their listings. This often requires investment in Amazon Advertising and external marketing strategies to stand out among millions of listings.
Myth 6: Amazon Takes Care of Everything for Sellers
Fact: While Amazon handles storage, shipping, and some customer service elements, sellers are still responsible for product sourcing, listing creation, advertising, and inventory management. Additionally, sellers need to ensure their products meet Amazon’s stringent requirements and comply with Amazon’s policies.
Myth 7: All Products Will Sell Quickly
Fact: The belief that any product listed on Amazon will automatically sell is a misconception. The Amazon marketplace is highly competitive. Products need to be chosen strategically, often requiring thorough market research to ensure they meet customer demand and have less competition. Proper listing optimization and ongoing marketing efforts are crucial to driving sales.
EXTRA MYTH : You Only Need a Few Hours a Week to Run an FBA Business
Fact: Running a successful FBA business typically demands more time than just a few hours per week, especially in the initial stages. Tasks such as sourcing products, managing inventory, optimizing listings, and handling customer service can be time-consuming. The time investment may reduce as the business scales and processes become more efficient, but it’s seldom minimal.
At Okulus Digital, we’re dedicated to helping entrepreneurs succeed on Amazon FBA. If you’re considering selling on FBA but have questions or concerns, we’re here to help. Contact us today to learn more about how we can support your online business goals!
