Huge market

FBA makes it easy to sell products globally and target more potential customers. Moreover, Amazon is the world’s leading e-commerce platform with a wide range of products from many different aspects such as electronics retail, food, home appliances, movies,… In addition, Amazon also implements Amazon Prime services, Amazon Web Services (AWS) and Artificial Intelligence systems (Alexa virtual assistant).

Currently, Amazon is the world’s most popular retail platform, particularly in the North American market, which includes the US, Canada, and Mexico. According to Amazon’s statement, this market has the potential to reach about 500 million customers and is distinguished by a significant percentage of Prime members (those who pay a monthly fee to use Amazon’s services and benefits. Additionally, Amazon has expanded its operations to many countries such as the UK, Germany, France, Japan, India, Australia, and several others.

Fast Shipping Time

Sellers can save time by using Fulfillment by Amazon (FBA), as Amazon continuously seeks for optimal techniques to improve its quick shipping network. The packaging and shipping procedure is significantly shortened by the well-organized system.

With its extensive system of fulfillment centers, Amazon currently allows sellers to keep their goods closer to consumers. Faster shipment time and higher customer satisfaction result from approach.

With the “Seller Export and Delivery” (Amazon SEND) initiative, Amazon helps sellers on the marketplace in Vietnam as well. Offering sellers a cross-border logistics option along with FBA services, Amazon SEND is an integrated cross-border shipping solution with Amazon’s third-party logistics. Currently, this solution provides air freight services for sellers in seven countries, including China, Vietnam, Thailand, India, Mexico, Germany, and the UK. This shortens the shipping time for goods from abroad to Vietnam and vice versa.

Shipping Fee Support

Shipping benefits offered by Amazon FBA to sellers include free shipping for Prime members, free shipping over a specific amount, affordable shipping plans, and discounted shipping for large or heavy goods.

Free Shipping for Prime Orders: Amazon Prime members have access to free 2-day shipping on eligible products. Amazon subsidizes part of the cost, allowing sellers to offer this benefit without bearing the entire expense. According to Amazon, the shipping cost via FBA is quite reasonable, around 32%, and can be as high as 72% for orders which are delivered within two days.

Free Shipping on Orders: When consumers’ orders reach a specific amount, sellers can sign up for a program that allows them to give no-cost shipping to them. For instance, shipping is free on purchases above $50. For these orders, Amazon will cover a proportion of the shipping costs.

Economical Shipping Option: Sellers can offer a shipping option to customers that takes longer but is cheaper. Amazon will cover a small portion of the cost for such orders.

Shipping Fee Support for Heavy or Oversized Goods: Amazon has a program to support shipping fees for heavy or oversized FBA products. The support fee will depend on the size and weight of the item.

Provide Business Management Tools

Sellers can track their business performance with analytics and reporting tools provided by Fulfillment by Amazon. There are views of traffic, sales, inventory, conversion rates, and other data. You can use this information to make well-informed decisions about your company’s operations, such whether to expand or improve.

Furthermore, FBA facilitates efficient inventory management. Sellers can track inventory levels, place replenishment orders, and manage product storage. Exchanges and returns of goods will be managed by Amazon’s FBA service.

Increased Chances of Winning the Buy Box

The Buy Box on Amazon is a yellow box on a product detail page that displays “Add to Cart” or “Buy Now.” When a customer clicks on this button, the product is added to their cart or purchased immediately. If there are multiple sellers offering the same product, Amazon uses an algorithm to select one seller to display in the Buy Box. The algorithm is based on the following factors:

On the Amazon product page, the Buy Box is a yellow box that announces “Add to Cart” or “Buy Now.” This button allows a customer to quickly add an item to their cart or make a purchase. If there are multiple sellers offering the same product, Amazon uses an algorithm to select one seller to show in the Buy Box. The algorithm is based on the following factors:

• Delivery time: Sellers who offer faster delivery speed are more likely to win the Buy Box.
• Inventory: Sellers who have enough inventory to meet customer requirements are more likely to win the Buy Box.
• Customer service: Sellers with top-notch customer service are more likely to win the Buy Box.

FBA helps sellers increase their chances of winning the Buy Box because FBA sellers consistently offer the top of delivery time . Additionally, the Fulfillment by Amazon model also provides customer service support to sellers.

Provide 24/7 Customer Care

Amazon’s comprehensive customer service and returns handling significantly benefits sellers by saving them time, money, and effort. This allows sellers to focus on key business activities such as service and product development, global expansion, and marketing.

Last but not least, Amazon’s customer service is widely recognized for its effective responses, leading to higher customer satisfaction levels for your store. When buyers encounter order issues, Amazon’s dedicated customer support team promptly steps in to address the problems, ensuring a seamless shopping experience.