Saturday, October 13, 2012

Fulfillment by Amazon part 3

I am completely frustrated with the FBA program.

It seems that everyone loves Amazon Prime - the ability to purchase what you want, get it quickly, and return it just as fast.  Of all the items I submitted to Amazon for fulfillment almost all of them were returned. Just got an email today about a refund issued for a buyer for an item they purchased using Amazon prime of course and it was FBA.  They of course get all the money back, Amazon just deducts it from your account, no warning.  Look further into it, you only have half your fees back which is crazy. So this person got to try out my item at my expense.  At this point I am unsure if an Amazon Prime member pays for return shipping but Im guessing they dont.

Majority of buyers dont return things unless they really have too since who wants to spend the money on a return? If they get free returns as a member everything is risk free.  But who loses out? The seller.

I dont have many items within the FBA program since I was just testing the waters but I am sure I have lost more then I have made.  At one point I was seriously considering sending everything to Amazon, let them do all the work right?  Just sit back and make money.  Its an expense to send all the items to them, another expense monthly, more fees per item sold and if the buyer returns  the item in not exactly the same condition Amazon marks it damaged and will toss it unless you request a return. Which you have to pay for.

Is it worth the risk? Maybe if your spending a lot on overhead. Me, Im just one person doing it all and its not worth it to me.

I really dont want to ask for the rest of the items to be returned. I think I will let them sit there until they are sold and not fulfill them again. Its a tough choice but the expenses related to FBA are just not worth it to an individual.

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