Nov 6, 2020

Tracking inventory is one of the worst pieces to FBA. No one likes talking to an irate customer, so outsourcing your customer service may be a blessing. If you pull back the Amazon curtain, however, you find the picture isn’t always rosy. Whatever your margin on an item, you’ll have to absorb the shipping costs for Amazon Prime orders. Mishandled inventory is one of the problems most commonly reported by Amazon FBA sellers. Amazon FBA Reddit communities, known as subreddits, can be a fantastic place to learn more about Amazon FBA and get tips from seasoned sellers. You won’t find services like these, which require personal attention and expanded capabilities, at Fulfillment by Amazon. Mishandled inventory is one of the Amazon third party sellers problems most commonly reported. There are some benefits to this inventory flexibility. On the flip side, Amazon FBA will handle customer service when your customers have an issue. Try free for 14 days, no credit card needed. According to Amazon seller forums, numerous Reddit forums, and countless other sites, Amazon FBA does not do well on this test, nor do they appear to be getting better. Copyright 2020 Red Stag Fulfillment. It’s hard to keep tabs on exactly where these fulfillment centers are located because Amazon doesn’t like to reveal this information. While Amazon FBA does offer multi-channel fulfillment, orders from your website and other platforms will still be sent in Amazon boxes. Amazon has some Rise ‘N Shine coffeemakers with the same SKU in a warehouse in Northern California. There was a lawsuit about this that went all the way to the Supreme Court, and Amazon … Sales tax nexus means a physical presence in a state such that you must pay sales taxes in that state. Amazon FBA sometimes falls short in this crucial metric. Amazon runs an enormous fulfillment and logistics business. Red Chain Logo image created by D3images - Amazon FBA has Bob’s coffeemakers in warehouses around the country, but not on the West Coast. If Bob chooses Red Stag Fulfillment as his order fulfillment company, his inventory in our Knoxville fulfillment warehouse may trigger an obligation for him to register to collect and remit Tennessee sales tax. In the meantime, once again, you aren’t generating sales. When this happens, you must file a claim and Amazon will usually reimburse you for the loss. But what if the item in the California warehouse is actually a knockoff being sold under the same SKU? Amazon FBA won’t tell Bob where his inventory is stored and may move his blenders and toasters from one warehouse to another. The test of any vendor is not when things go smoothly but how well they handle the glitches that inevitably occur. Is this a risk you are willing to take? As more business moves from brick and mortar retail to ecommerce, states have been scrambling for ways to make up for lost sales tax revenue. When there’s a glitch in those systems, however, it’s often the little guy who gets squeezed. And while you should also use Amazon’s own site as the go-to for policies and rules, /r/FulfillmentByAmazon is a really user-friendly way of learning about the general concepts first. In an ecosystem the size of Amazon FBA, where personal attention is hard to come by, the flip side of the company’s huge logistics machine is mistakes that can ruin a reputation. That way, you can make sure everything runs properly. The suit claims that Amazon meets California’s definition of a retailer, so Amazon should be liable for all sales taxes. This can create confusion and could detract from the relationships you want to build with your repeat customers.

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