Is it worth it to start Amazon FBA in 2024?
Introduction
As the year 2024 has started, many people want to know if Amazon FBA is worth it or not. In 2021, the total revenue of Amazon was $469 billion, and about 22% of this revenue was driven by the sellers who use Amazon FBA for managing their business. Amazon FBA service has proved to be very helpful for most of the sellers, but the question is will its importance remain the same in 2023 or not. In this guide, we will whether Amazon FBA is worth it in 2024 or not. So, make sure you read till the end.
Amazon FBA In 2024
If you are wondering if Amazon FBA is worth it in 2024 or not then the answer is yes. Amazon FBA will play an important role in 2024 as it manages your business for you. Most of the sellers work on Amazon as part-time jobs
They use Amazon FBA service and earn without doing much work. Moreover, if you are unable to increase your sales or visibility then you can contact Scale Fortune Company for their private label service. They will surely help you to get out of any problem.
Well, according to studies, the importance of Amazon FBA may increase in 2024 because everyone takes Amazon as a part-time job at the start and uses Amazon FBA for managing it.
Is Amazon FBA Profitable In 2024?
According to the statistics, about 73% of Amazon sellers use the Amazon FBA program. Till now, Amazon has been found to enhance sellers’ business and customer conversion. A special thing about this service is that it gives eligibility for Prime free shipping.
If we talk about the profits a seller can get through Amazon FBA in 2024 then the answer will be very positive. You can earn a good profit just by investing in buying the products and shipping them to Amazon.
As long as you meet Amazon’s requirements and provide them with products correctly, you can make a considerable amount of profit.
The profit you make will depend on your number of sales. As a rough guide, use the 25% rule to find your profit. Take your total selling price and just divide it by 4.
· 25% will go to CoGS for landed cost stateside
· 25% will be Amazon fees
· 25% will go to advertising
· 25% is the profit you will get to keep
Benefits Of Amazon FBA
When a seller uses Amazon’s FBA service, he automatically becomes a partner with Amazon Company. Here are all the benefits you would get by partnering up with the richest companies by revenue in the world.
Access To Prime Customers
One of the best benefits that you can get by being an FBA seller is getting access to prime customers. All the customers are interested in good quality products at lower prices. Well, that’s what Amazon does. Amazon sells your products to customers quicker and cheaper.
An FBA seller automatically gets a ‘’Prime’’ badge on its account. This prime badge shows the members that Amazon’s shipping guarantee is offered by you.
Get Amazon’s Reputation
Trust plays a key role in online business. A brand can never be successful if it has not gained the trust of customers. Consider you bought a product from a brand you trust then you know if there is any problem with it, you can get it fixed in no time.
Amazon gives a Prime badge to FBA sellers which gives them an advantage over non-FBA sellers. And helps them to gain customer trust easily.
Customer Service And Return Management
The worst thing a seller can face is a call from a customer saying your product is not good. This can ruin your day. Other than that, dealing with this problem becomes very difficult and takes a lot of time.
Well, an FBA seller does not need to worry about it. It is because Amazon manages all of the returns and customer service calls 24/7 for you. The only thing you need to do is buy the products for sale and send them to Amazon.
Conclusion
In this guide, we explained how beneficial can Amazon FBA will be in 2024. We hope this information helped you in any way.
