In 2022, you’d be hard-pressed to find a business that has not been in some way affected by Amazon’s incredible stature in the world of e-commerce.
From the types of goods available around the world to groundbreaking delivery times, Amazon is setting the standard for e-commerce business players on the global stage. But if you’re new to selling in the FBA marketplace, you may be wondering: “Is Amazon FBA still worth it in 2022?”
The short answer is yes—if you move strategically.
Like any journey into Amazon, embarking on an FBA business comes with its fair share of challenges. Let’s take a look at what it takes to succeed as an international FBA seller to make growing your business on Amazon worth your while.
First, A Quick Review Of Amazon FBA
Fulfillment By Amazon is a paid Amazon service that allows sellers to enjoy all the perks of Amazon’s shipment model without the hassle. Essentially, sellers can store their products in Amazon’s fulfillment centers around the world. Then, Amazon packs and ships your product to the customer while providing customer service for your FBA business. Meanwhile, a convenient seller portal through the Amazon platform allows you to manage your inventory, sales, and Amazon IPI score.
You provide the products and Amazon gets your items from their centers to your customers. Easy, right? It’s no wonder that 73% of sales on Amazon are FBA. 1Sellers enjoy the convenience of Amazon’s customer services and only have to worry about getting their products to the shipment center.
And it only gets better from there.
The State Of Amazon E-Commerce In 2022
There are two kinds of people in the world of Amazon: the buyers and the sellers.
Consumers By The Numbers
Between 2016 and 2021, Amazon skyrocketed from a 37% to 50% market share in the world of modern e-commerce, with no signs of slowing any time soon.2
Following the COVID-19 pandemic, 56% of respondents to a Survey on Amazon Consumer Behavior by Feedvisor reported visiting the site multiple times per week, often on a daily basis.3
In addition to Amazon’s U.S. marketplace (trafficked by 3.1 billion users), Amazon has 19 national marketplaces around the world. A few of them include:
- The U.K., with 569.64 million users,
- Japan, with 646.97 million users,
- Canada, with 231 million users,
- Mexico, with 89.67 million users,
- And Australia, with 44.71 million users.4
These consumer trends indicate a public with a vigorous appetite for shopping made easy and a boundless marketplace. This is also a sign of how lucrative global expansion can be for any Amazon FBA seller.
Sellers By The Numbers
As of January 2021, there are 6.4 million sellers in the Amazon marketplace, with around 538,000 joining the fold this past year.5 However, only 1.5 million of these are active sellers, many of which are fresh to the global Amazon marketplace.
The majority of FBA sellers are brand new to the marketplace, with no more than two years of experience under their belt—so, if you’ve been on the fence about breaking into Amazon selling, now is the time to join in good company.6
How To Streamline FBA To Grow Your Amazon Business
So, is Amazon FBA worth it?
Yes. But global sellers getting started with FBA should be apprised of a few contingencies whose mastery will enable them to thrive in the world’s most promising e-commerce landscape.
Let’s break down the formula.
#1: Simplify Your Shipping Procedure
Amazon is slated to be the largest delivery juggernaut in the U.S. by 2022.7 While this is tremendously exciting for FBA sellers (and for Amazon), the breadth of their fulfillment organ leaves a lot of room for error when it comes to getting parcels from point A to point B, like:
- Damage caused to the product while in transit,
- Complex issues with product prohibitions, heavy regulation, and customs clearance,
- Or lost or untraceable packages resulting from the absence of an IOR (Importer Of Record).
Furthermore, when you’re shipping FBA inventory internationally, you’ll need an IOR like Zee to receive shipments, take on any duties and taxes, and resolve any stuck shipment hitches while your Amazon orders make their way to foreign customers. For example, Amazon will not act as the IOR for goods arriving at an Amazon warehouse, so you’ll need to import them yourself—which can be challenging.
Rather than recruiting a spate of shipping agents to move your product—all of whom you’ll have to track and communicate with in the event of a mishap—your best bet is to work with a shipping partner whose bread and butter is facilitating the safe, swift transit of FBA inventory from your business to your customer—no matter where they are in the world. Partnering with the right provider can help prevent a situation where you find yourself googling “how to fix stranded inventory on Amazon.”
#2: Boost Profit Potential
Amazon’s impressive global network of storage facilities is virtually unrivaled—and it’s growing. However, business owners know that working with Amazon in FBA comes with a lofty price point and a lot of red tape.
To make your enterprise worthwhile, a shipping partner can help you shore up your profits by:
- Serving as your IOR to manage all documents and import dues,
- Leveraging relationships with freight forwarders to agree on low rates on shipping and tracking,
- Drawing on experience in transnational trade laws to free packages from shipping snares across FBA hubs globally,
- And navigating the Value Added Tax procedures to position you for the best possible reclaim on your tax returns.
Make The Most Of FBA With Zee
As an international Amazon seller, if you work with individual brokers in every country your goods are going to, you’re adding undue complications to a shipping situation that could be a whole lot simpler. With Zee, you only need one wingman to help get your FBA inventory from point A to point B, being the Amazon warehouse.
As the primary point of contact in Amazon-dominating regions like the UK, EU, and Australia (and counting), it’s Zee’s job to stay on top of the trade rules (literally) for each characteristic country in which it operates.
Rather than educating yourself on the regulations, restrictions, and prohibitions on international trade—which are ever-evolving in each country—you can rely on a single shipping partner to meet customs compliance no matter where in the world your goods are going.
The knowledge doesn’t end there! If you find yourself asking, “Do you need a freight forwarder for Amazon FBA?” or “What is the difference between DDU vs DDP?”, be sure to check out our guides to learn all there is to know about getting your goods from point A to point B.
- SellerApp. Amazon Seller Statistics. https://www.sellerapp.com/blog/amazon-seller-statistics/
- Statista. Projected retail e-commerce GMV share of Amazon in the United States from 2016 to 2021. https://www.statista.com/statistics/788109/amazon-retail-market-share-usa/
- Feedvisor. The 2021 Amazon Consumer Behavior Report. https://feedvisor.com/resources/amazon-marketing-advertising-strategies/2021-amazon-consumer-behavior-report/?utm_medium=pr&utm_source=mkt&utm_content=pr&utm_campaign=consumer-survey-21
- Jungle Scout. How to Sell on Amazon International Marketplaces. https://www.junglescout.com/blog/amazon-marketplaces/
- Marketplace Pulse. Number of Sellers on Amazon Marketplace. https://www.marketplacepulse.com/amazon/number-of-sellers
- Forbes. Thinking Of Selling On Amazon Marketplace? Here Are The Pros And Cons. https://www.forbes.com/sites/pamdanziger/2018/04/27/pros-and-cons-of-amazon-marketplace-for-small-and-mid-sized-businesses/?sh=5f1f53b66867
- Variety. Amazon Prime Tops 150 Million Members. https://variety.com/2020/digital/news/amazon-150-million-prime-members-1203487355/