I am seriously considering Amazon FBA.
As a shopper, I am totally into Amazon. I buy from them more than once a week It's so easy! It's so friggin easy! When it comes to my own products, I would love for my customers to be able to experience that ease.
But, we make our own branded products and we have a dedicated group of followers who buy our products on a regular basis. If I go with Amazon FBA, it is my understanding that I will pay Amazon a 15% referral fee, which either means my customer's costs will go up, or, of course, that my profit margin will go down. And, of course, because our customers are not a generic mainstream market, I still have to do the work and spend the money to find the customers.
Am I reading this right?
I notice that you can do FBA with a Shopify store, but I cannot figure out what the costs are. Are they the same, just minus the referral fee? Or, are they higher?
Please feel free to riff about this. I would love a conversation.
Keegan here from the Shopify Guru team.
Great question, and you have some options! Currently, you are required to install an app (usually paid) to have your items listed on Amazon.com (marketplace). FBA that we have right now, is only for inventory to be with Amazon not for listing on the actual Marketplace. We are working on a new Amazon Marketplace feature you can signup for here however there is no release date set just yet.
So, until that is released you can checkout the available paid apps here for listing on Amazon Marketplace to get selling! As for pricing, bit unsure myself but Amazon does have a support line here you can always give a ring for those types of numbers.
Apps to explore
Thanks for your post :)
I don't want my products listed on Amazon, but simply that they fulfill them. The Amazon FBA program does seem to require that you also sell on Amazon, but I keep seeing "Multi-channel fulfillment" also offered by Amazon where you can sell on Shopify and have Amazon do the fulfillment.
Do you know if this is an option?
This is a great question, Amazon might not be ideal for your fulfillment needs if you aren't looking to sell on Amazon as well. A fulfillment center like Ships-a-Lot.com would better fit your needs and also save you money. Multichannel FBA becomes a bit pricy regardless.
We are selling both on our own SHOPIFY store www.wagnercosmetics.com as well as on various AMAZON marketplaces across Europe.
We do use AMAZON as fulfillment partner for both channels. And we are very happy with them. Very fast delivery, reliable pick & pack and fair transportation prices.
However, as we have recently installed the OrderMetrics App in our SHOPIFY store, it would be helpful to be able to import the handling and transportation costs automatically from AMAZON FBA rather than to have to enter them manually.
Does anyone know a software product for that?
Our app does all that for you! Check us out in the app store:
Also we have a Youtube video that explains the setup process both in the US and overseas. Here is the link:
Let us know if you have any questions.
Amazon can fulfill your orders even if you don't use FBA -- but you can probably find a better solution.
First, you're smart for not going with FBA since you are selling branded products. Amazon FBA has a lot of wonderful things about it, but at the end of the day, it builds customer loyalty to Amazon... not necessarily to your brand.
Second, with regards to fulfillment, Amazon has extremely rigid standards for receiving. In other words, your products must arrive precisely in accordance with their standards when they hit Amazon's distribution center floor... or else you'll incur high fees! This comes with its own issues. For instance, retail fulfillment is basically out, since custom order specifications cannot be accommodated (and, if they can, the fee will be tremendous). Finally, inventory storage at Amazon is shockingly high.
You may want to look at other fulfillment centers. Full disclosure, we're one of those over here at ShipMonk. You should give us a look, and you should check out other fulfillment centers while you're at it to find the right fit for you! Good luck out there!
Good for you, Amazon is a great channel for sales.
Here's my $0.02
Take your control wherever you can get it!!!!
We once had a fashion retailer client who asked us how to approach the idea of control if a brand does not sell wholesale. Good question. If that’s the case for your brand, or if you have agreements with your retailers that they’re not allowed to sell your product on Amazon, then be sure to sit down with your team and weigh the decision to sell on Amazon heavily. Knowing that once you go to Amazon, you give up an amount of control (just how much is a sliding scale of whether you’re just selling there on Seller Central, using FBA, or a full on wholesale Vendor).
Despite this surrendering of a certain amount of control, Metric Digital still prioritizes Amazon as a focus channel alongside Search and Social. We view it as extremely important for modern, growing ecommerce brands. We work with several of our clients on both Paid Amazon & operational management, and have seen outstanding results, despite the threat of third party resellers.
But remember: The above approach only work if the Amazon strategy is integrated with your other digital marketing efforts.
We blogged about this more here: https://bit.ly/2KuwQ80
Hope that's useful for ya!