Does FBA increase sales?


#1

Just sent some inventory into Amazon, should I expect about the same sales volume or see an increase?


#2

Depends on what you sell. i went from 4 to 8 FBM items per month to 30 to 40 items per month FBA, Returns avg 1 every other month. Except at Xmas. then it’s easily 10 or more.

YMMV


#3

FBA helps a lot it gives buyer a confident your return may increase but your sales also.


#4

have a better chance.


#5

customers are addicted to prime.


#6

80% increase in sales. 20% more returns. Went from $30-$50 FBM a day added to the account to $100 - $120 a day FBA into the account. This is not gross sales but what I get after Amazon fees are paid. I love FBA. And yes customers are addicted to Prime. My girlfriend is for sure.


#7

we experienced a 100% increase when we did it back in, crikey, 2011?
You’ll have to position your price a little higher to cover costs but generally the buyer will accept that being an FBA item because you have an inbuilt trust factor.
So long as you are price competitive (not necessarily the lowest) and maintain good feedback.

Our main savings was labor. From packing and shipping 100 items per day ourselves, to sending them all in 1 box to FBA. The orders hit, they get sent out automatically, leaves you to concentrate on other aspects that can grow your business. Not stuffing boxes all day.


#8

Your question was does FBA increase sales.

For things that WILL SELL, abso-friggin-lutely. All things being equal, you will get multiples of volume through FBA than FBM.

But if your pricing is wrong, or there are too many other sellers, or you product is not in demand, it isn’t going to sell whether you do FBM or FBA.


#9

Yes…It Increases Sales Because you are part of the AZ Profit Model…unlike 3dParty FBM Sellers


#10

lol, but you’re still stuffing a “box” all day with SKU’s to send to FBA and preparing the shipment in accordance to their policies. Unless you pay them to do it per each item (which some do)

If you have 50 items in FBA, this becomes a full time job, and you’re still stuffing boxes all day to send to amazon FBA.


#11

Increases sales and increases costs. watch out for the items they lose thye have lost thousands of my items


#12

FBA will bring a large increase in sales volume likely a 10 fold increase of returns. As one other seller stated, watch your inventory. Amazon lost a lot of my inventory and took a while to sort it out, still unsure what happened. Once you are FBA you will have arbitragers on eBay copy your listing and mark it up to make profit on your Amazon listing.

Most importantly, if you are new to FBA, you now have nexus wherever your inventory is kept, and now a new economic nexus if you reach certain sales levels. you should record the dates of first sales from certain states so you can prove when nexus began. many sellers will tell you not to worry about sales tax as they do not collect it. the reckoning is here for those ney sayers and if you want to do the right thing, register for sales tax in every state you have inventory proactively (we did it for 14 states as soon as we went FBA). people will reference the Quill decision as to why you need not collect tax. Quill was overturned by the Supreme Courts and now states can come after you for taxes.

We stopped FBA after a few months. unless you have a large profit margin, FBA is a losing proposition. If your margin is fairly tight, my advice to you is to pull out of FBA before you lose your soul to it :slight_smile:


#13

Ahhhh the horror stories of using FBA.

Only one will truly know the horrors until they experience it themselves, first-hand.


#15

Does a big bag of flour make a really big biscuit?

Yes FBA has increased sales for me. Also depends what you sell though.


#16

For now yes. People are willing to pay way more than something is worth just knowing they will get it fast. This will change in the future as people wise up and get over the novelty of being able to get something in the mail like in 2 days. It’s good for a laugh now but consumers will realize eventually that they are paying way too much just to get something quickly, and will migrate to other sites and real stores.


#17

Yes
You can expect around a 50% increase in sales
an up to 2000% increase in returns
An increase in fraud reports (when someone returns something just to get a refund and it is a box of rocks, FBA staff will place it back in inventory so it can go back out. FBA staff has pulled switches, comingled inventory etc… etc…)

Expect Amazon to accept returns 5 months later that have severe customer damage, then tell you to suck it up as a cost of doing business

But hey enjoy the increased sales.


closed #18

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