Nine University Reviews – Pros and Cons of an Amazon FBA Business

There are over 2 million people in the world who are making use of the fulfilment by Amazon business, and making plenty of money in the process. It is for this reason that so many people wish to learn the skills that they need in order to launch such a company, and why there are courses at places like Nine University which help its students to learn the skills that they need to launch an Amazon FBA company. There are many Nine University reviews online from previous students of the course who are now crushing it with their online business. If this is something that you have been thinking about, here are some of the pros and cons of this type of business.

How FBA Works

Fulfilment by Amazon works very simply and it is a great way of selling products using their services and expertise. You simply send your products to Amazon where they will be stored in one of their warehouses, once a customer orders one of your products, Amazon will pick, pack and ship the order for you. Amazon will also handle any returns that are made on your products.

Pros of Running an FBA Business

One of the biggest pros of selling your goods through Amazon is the sheer popularity of the company and the fact that this will greatly enhance your ability to sell. Over 300 million people use Amazon and in the US alone there are 90 million Prime subscribers. Even more impressive is the fact that on average, customers spend over $600 per year at Amazon. Speed is also a massive factor here and because you will be bulk shipping your goods to Amazon, you can be safe in the knowledge that the customer will receive their goods in no time at all from the service. Cost efficiency is something to count on with an FBA business as Amazon often offer reduced costs on shipping rates when you send to them. Finally the management of returns will save your company time and money, as Amazon will be able to take charge of this.

Drawbacks of an FBA Business

There aren’t many drawbacks of using Amazon in this way but there are some negatives which are worth bearing in mind. The first is that this is a service which will cost money, after all you are essentially outsourcing the shipping side of the business, therefore you must ensure that the products are profitable enough for this to be worthwhile. If you have a product which doesn’t sell well then you are also looking at incurring long term storage fees, which rise after 6 months. The final disadvantage of a service like this is that because the process of returning a product is so easy for the customer, they are much more likely to decide against an item and you may see a higher volume of returns as a result.

All told this is a smart business model and one which can make you money.