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Amazon FBA Is Dead: How To Sell On Amazon With No Inventory Issues? [Solved]

By Artemis K.

a cover of the article on why amazon fba is dead

Amazon FBA was widely known as the easiest way to start selling on Amazon. Yet time has put everything in its place. With our 10 years of experience in ecommerce, we can say it for sure – Amazon FBA is dead. It’s no longer the lucrative model it once was. This article will unravel why Amazon FBA, once a beacon for online sellers, has dimmed and what alternatives are rising in prominence.

Amazon FBA is dead: truth or myth?

amazon fba is dead

Have you thought of starting selling on Amazon and making big bucks? If so, you’ve heard about Amazon FBA as a big ticket to your business on Amazon.

Amazon FBA (Fulfillment by Amazon) is a service designed to simplify the selling process for Amazon merchants.

The idea is straightforward: you send your products to Amazon, they store them, and upon each sale, Amazon packs and ships the products. On the surface, it seems convenient because they do the most part of the job for you.

Yet, there are so many complexities and challenges so it’s not as favorable as it should be.

The limited shine of Amazon FBA: pros and cons

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Amazon FBA (Fulfillment by Amazon) presents itself as a straightforward solution for sellers on Amazon, but our extensive experience paints a more complex picture. Let’s delve deeper into the pros and cons to understand why Fulfilled by Merchant (FBM) might be a superior choice.

Pros of Amazon FBA

  • Convenience in logistics

Amazon FBA takes the burden of logistics off the sellers’ shoulders. Once you ship your products to an Amazon fulfillment center, they handle the rest — storage, packing, shipping, and even customer returns. This can be particularly advantageous for sellers who lack the space or resources for managing inventory.

  • Prime eligibility

Products fulfilled by Amazon automatically qualify for Amazon Prime. This not only fast-tracks shipping for customers but also boosts the visibility and appeal of your products. Prime products often witness higher sales volumes due to the trust and loyalty Amazon Prime members have in the service.

Cons of Amazon FBA

  • Eroding profit margins due to high fees

While Amazon FBA seems convenient, it comes at a cost. The fees for fulfillment and storage can quickly add up, especially for large or slow-moving products. These costs significantly eat into your profit margins, always making it less profitable than anticipated. Do you start a business to make money? Sorry, this is in question.

  • Restricted control over business operations

Using FBA means handing over a significant portion of your operational control to Amazon. This includes aspects like inventory management and customer service. If issues arise, such as damaged goods or customer complaints, your ability to intervene and manage these situations directly is strictly limited. Are you eager to be a boss and keep everything under control? As the card will fall.

  • Intensive competition in the marketplace

The Amazon FBA marketplace is notoriously competitive. With an increasing number of sellers using FBA, standing out among the crowd becomes a challenging task. This high competition can lead to aggressive pricing strategies, further impacting profitability. Do you wish to offer competitive pricing your customers really deserve? It’s a different story.

  • Burden of long-term storage fees

Unsold inventory sitting in Amazon’s warehouses results in long-term storage fees. These fees are prohibitively expensive, particularly if you have products that don’t sell quickly. This adds an extra layer of financial pressure on sellers to keep inventory moving. Are you looking for the business model with no risks? Keep looking.

  • Navigating Amazon’s changing policies

Amazon is known for frequently updating its policies and terms of service. These changes can sometimes be abrupt and significantly affect your selling strategies. Keeping up with these changes and adapting can be both challenging and time-consuming for sellers. Would you like to do less, but get much? Amazon won’t let you.

Given these considerations, opting for Fulfilled by Merchant (FBM) becomes an attractive alternative. This model allows for more control over your business operations, from customer service to shipping and handling.

Partnering with third-party companies specializing in order fulfillment can offer the flexibility and autonomy that Amazon FBA lacks, empowering sellers to tailor their operations to their specific needs and goals.

AliDropship stands out as a robust and effective alternative to Amazon FBA, especially for those looking to make their mark in the Amazon marketplace. With our comprehensive approach to ecommerce, AliDropship offers a range of benefits that address the shortcomings of Amazon FBA, paving the way for a more profitable and manageable online selling experience.

What’s the alternative? Look no more!

get a turnkey high-ticket dropshipping store from AliDropship

Now you know that Amazon FBA is evil. Are there any ways to start selling on Amazon with no fuss? Sure, there are some!

Key features and benefits of AliDropship

  • High-ticket dropshipping store

AliDropship provides a fully-functional online store tailored for high-ticket dropshipping. This store comes pre-loaded with a selection of 1,000 high-ticket products, each carefully chosen for their quality and profitability. The potential to earn up to $5,000 per sale is a game-changer, offering a lucrative opportunity that’s hard to find with Amazon FBA’s model.

  • Tailored selection of products for Amazon

Understanding the unique demands of the Amazon marketplace, AliDropship offers a curated list of 100 products that are specifically optimized for Amazon selling and proven to be high-converting there. This curation ensures that the products you list are not only high in demand but also comply with Amazon’s guidelines and customer preferences.

  • Life-long 24/7 support

Embarking on your ecommerce journey with AliDropship means you’re never alone. You get the benefit of ongoing, round-the-clock support from a dedicated personal manager. This continuous guidance covers everything from store setup to product selection and marketing strategies, ensuring you have all the resources and support needed for success.

  • Cost-effective and efficient

By partnering with AliDropship, sellers can avoid the high fees and complex logistics associated with Amazon FBA. This efficiency translates into better control over your business operations and more room to maximize profits. The focus shifts from managing logistics to growing your brand and business. No more promises, just an easy process of selling on Amazon!

  • Marketing support and ready-made campaigns

AliDropship doesn’t just provide a platform; it equips sellers with powerful marketing tools and ready-to-use campaigns. These resources are designed to effectively promote your products on Amazon, driving sales and enhancing visibility.

Conclusion: alternatives to Amazon FBA while it’s dead

start a dropshipping business

The limitations of Amazon FBA, particularly in the current competitive ecommerce landscape, are increasingly apparent. AliDropship offers a comprehensive and empowering alternative. We provide not just the tools but the support and strategic edge needed to succeed in ecommerce, free from the constraints of Amazon FBA.

For those ready to venture into Amazon selling and seeking a profitable, stress-free experience, AliDropship is the answer.

Embark on your ecommerce journey with a high-ticket dropshipping store from AliDropship. Experience the difference as you step into a new era of selling on Amazon, backed by a platform that truly understands and caters to your needs. Start today and transform your ecommerce aspirations into a thriving, profitable reality.

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By Artemis K.
Artemis is a senior copywriter at AliDropship. Having received a BA degree in International Communication and MA degree in Advertising, he started his career working in a multinational petrochemical enterprise as a marketing specialist. To date, for a number of years, Artemis has been sharing the latest ecommerce trends with you, creating guides on how to start an online business from scratch, and keeping you updated on new IT solutions that help you optimize your venture.
2 Comments
Azharudeen M 3 months ago

Need a call to proced further.

Arshad Mahmood 3 months ago

Yes FBA is at decline. While I was finding a n alternate way Alidropship seems a good solution.

Please provide further details.

Thanks

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