How to decide between FBA and FBS
While the right decision can depend on your products and growth strategy, there are a few factors to consider when choosing between the two fulfilment methods for a product you’re planning to sell.
Costs vs Fees:
What will the total costs be of storing, picking, packing and shipping the product orders yourself? How will this compare to FBA fees as you assess profitability for that particular product?
Time and resources:
Will you have time to send out each individual order as you make sales? Are you able to dedicate resources to providing customer service, and managing any refunds or returns?
FBA enables Amazon Prime customers to take advantage of free two-day shipping on eligible orders and all Amazon.com.au customers to enjoy free shipping on eligible orders over $39.
If your business is smaller, agile or just starting out, FBA can be a great way to provide high quality customer service for your customers with phone and email responses around the clock.
Profit margins can vary for different products depending on their size, weight and category. As such, FBA, FBS or even a mix between the two could be the right choice for your Amazon orders.