The Downside to Selling on Amazon FBA – Competition

The Downside to Selling on Amazon FBA – Competition

If you have found a product to sell on Amazon, and you want it fulfilled by Amazon (FBA), it is fairly easy to follow the instructions online to send your stock to be fulfilled by Amazon. It normally takes around three to four working days for the stock to be received and checked in, and then you can view it live.

Another downside to selling on Amazon FBA is competition. You can either search for the product to see if there is already a listing, which you’ll then set at your own price, or you will want to create your own personal listing, to which you will require your own EAN.

However, you may find that after a few sales there will be competition ‘leaches’ who will tag onto your product, and even when you send them a polite email asking them to go elsewhere, they often don’t. The added competition will push down your profit margin and nobody wins – except Amazon. I can’t fathom why some sellers would feel okay with making pennies for profit, especially when Amazon FBA is expensive, and remember Amazon charge their fees PER item sold.

The Downside of Selling on Amazon FBA – Longterm Storage Fees

The Downside of Selling on Amazon FBA – Longterm Storage Fees

I’ve sold on Amazon in the past, both merchant and fulfilled by Amazon FBA, and if you can find the right product the money will stream in, but beware of the downsides of Amazon FBA. It may seem like no one else is selling your product so you send in over 100 items to be fulfilled by Amazon, but then the product doesn’t sell.

It’s great seeing your product live ready to be purchased by millions of people through its Prime programme, but you also need to beware of Amazon’s longterm storage fees if the product doesn’t sell. They normally calculate this each month and add it to your balance. If products are not selling, you may choose to advertise the product, but even this does not guarantee a sale.

Then there is the competition. Competition of the same product by other sellers will lower your profit margin and you may lose you the ‘elusive’ Amazon buy box. If the product doesn’t sell well then you’ll have the longterm storage fees applied to your Amazon account each month, or you can have the products returned to you by Amazon, which will also incur a fee. Amazon are the only winners in this vast online market of competition.