In the world of multichannel E-Commerce operations platforms, Amazon has raised as a name synonymous with genuine profits. With Amazon FBA, the sellers can capitalize on their investment with increased profit margins. In the first quarter of 2021, 55% of Amazon sales came directly from third-party sellers.
And guess what? 2/3 of those sellers were using the Amazon FBA platform to leverage online sales. The FBA offers a brilliant opportunity to start a full-time or part-time online business on the platform. FBA (Fulfillment by Amazon) is a perfect way for millions of people to find their respective niche in online sales.
Luckily, Pakistan finally got the spot in being an approved seller on the platform. It’s allowing the sellers to control the fate of their business and enter the international marketplace. Since Amazon FBA is unique for the people of the country, therefore it’s difficult to analyze the power and potential it holds. Through this blog, we’ll discuss the impact Amazon FBA can have in Pakistan.
What’s Amazon FBA?
Being a new concept in the Pakistani market, everything is confusing. Therefore, why don’t we start from the basics? Let’s understand what Amazon FBA is and how does it operate?
Fulfillment by Amazon (FBA) is a service Amazon launched back in 2006. It provides convenience to third-party sellers, allowing them to automate their order shipping and fulfillment services. The sellers can leverage the vast network of Amazon with FBA to store, pick, pack, and finally ship the product.
In easy words, sellers will sell while Amazon will ship the order for them. All this in a predictable fee! If you are enrolled in Amazon FBA, only then the platform will handle your shipping necessities, including refunds and returns. Amazon will not just ship for you, but also pick from the warehouse and pack it for you.
Amazon FBA will provide its third-party sellers with:
- 24/7 Amazon customer service
- Some fees that will include fulfillment and shipping cost (like picking, packing, and shipping)
- Phenomenal access to the world’s most popular and fulfilling network
Once goods received from the seller in the warehouse, Amazon will design, brand, and pack the order
Amazon will pick the order and arrange transportation of the goods while ensuring proper shipment
Amazon will manage all the interaction with the customer and take care of after-sales support
Pakistani seller relaxing at home while Amazon FBA taking care of everything in detail
Impact of Amazon FBA in Pakistan
Pakistan has recently bagged a position on the Amazon platform as an approved seller. Many businessmen were dreaming for this day, and finally, the dream has come true. This positive news doesn’t mean a lot for Pakistani consumers. However, it’s a perfect opportunity for Pakistani merchants to expand their business in the international market and beat the competition.
The majority of business-minded people and economists are aware of Amazon and its phenomenal operations across the globe. However, before the approval, it was difficult for Pakistani sellers to establish themselves on the platform. Most importantly, they were shipping orders from Pakistan which was resulting in higher costs.
But now after getting access to Amazon and its unique Amazon FBA platform, selling will become much easier. The sellers have to send their Pakistani inventory via Amazon FBA to their warehouse and wait for orders to come. Amazon is a popular platform known for selling at lower rates. Thus, the local merchants can go for thinner profit to break into the market, defeat the competitors, and earn a reputable spot.
Currently, there are more than 2 million sellers on the Amazon platform, selling their products. Penetrating in such a dense market isn’t easy but also not impossible. People who desire to expand their business internationally must get training regarding Amazon seller’s accounts. How to log in and manage their orders etc.
With Amazon FBA, Pakistani merchants can enter the market and capitalize on their products. The sellers will save money that they were spending before when shipping from Pakistan. And most importantly, trying to take care of the shipment. With Amazon FBA, all these worries are embraced by the platform itself, allowing the third-party sellers to sell and make a profitable business.
Advantages of Amazon FBA in Pakistani Market
If we are talking about Amazon FBA in Pakistan, then there are numerous advantages for the sellers. Some are direct benefits while others are indirectly related.
- Pakistan was initially banned by Amazon due to the poor quality of products being sold via their platform. However, if the sellers choose Amazon FBA, they don’t have to worry about quality concerns. FBA itself approves the products after vigorous quality assurance.
- Before Amazon FBA, the sellers used to worry about the delivery of the product and had to deal with its fragility concerns. But Amazon FBA takes care of the packaging, delivery, and assurance of the product to reach its destination intact.
- Amazon FBA doesn’t charge any fees for the storage of inventory and shipping the products. Therefore, sellers can remain stress-free from the recurring expenditure. Sellers can pay a collective amount to Amazon FBA that will bear their expenses. The seller will save money in shipment, packaging, and storage.
- Once enrolled in Amazon FBA, the seller can minimize their efforts. They simply have to take care of the communication and sales with the customer. Once the order is confirmed, Amazon FBA will take the strain on its shoulders.
- Before Amazon FBA, sellers had to take tension of every step. But with FBA, the sellers can relax without worrying about the time and quality of the product. Everything will be done by a trustworthy retailer.
- Buyers from all over the world trust FBA and Pakistani sellers can take advantage of it. The buyers will trust them, where customer PR network with be enhanced ultimately.
- Not only focused on delivering the product, but FBA also deals with refunds and returns. The third-party seller doesn’t need to break a sweat during all this process.
- On-time delivery has always been a concern for Pakistani sellers for international clients. With Amazon FBA, they don’t have to take tension as FBA promises swift delivery without compromise.
- Amazon FBA also allows its sellers to access multichannel fulfillment solutions. Through this, the seller can sell their products across multiple platforms.
Wrapping Up
The concept of Amazon FBA is new for Pakistani sellers but it isn’t impossible to learn. FBA offers exceptional benefits which sellers must avail to expand their business in the international market.
If you are looking to learn about Amazon FBA, feel free to contact us and get registered in our course.
