US Amazon FBA Program,Am I Worth Joining In 2022?-Xiongda

Table of Contents

What is Amazon FBA program?

FBA is Amazon’s logistics service, that is, Amazon opens its own platform to third-party sellers, integrates their inventory into Amazon’s global logistics network, and provides picking, packaging, and terminal delivery services for them, and Amazon charges service fees.

In 2007, the FBA (fulfillment by Amazon) service was introduced, that is, Amazon opened its own platform to third-party sellers, incorporated their inventory into Amazon’s global logistics network, and provided them with picking, packaging, and terminal delivery services.

Amazon charges for the service. In Amazon, the main purpose of FBA is to improve Amazon’s user experience and increase stickiness, not an important source of financial income.

Amazon FBA program
Amazon FBA program

Pros and cons of Amazon FBA program

When you’re hesitant to join Amazon FBA program, the following pros and cons will help you make the right decision:


Here are some of the advantage of Amazon FBA program that you should know.

1. Have enough time to focus and scale your business

Amazon is responsible for the product packaging and shipping process. It also provides excellent customer service. Stay focused and you have nothing left to do. So you have plenty of time to focus on scaling your business efficiently.

2. Continuous development

The frees of Amazon FBA program you from the tireless focus of building a brand name for yourself. Thanks to Amazon’s honorable goodwill, you’ll get all the brand recognition you need.

Yes, it is very convenient and your online store will be able to expand significantly.

3. Larger customer base

Developing a customer base is one of the most difficult tasks any entrepreneur has to face. Nonetheless, with Amazon FBA program, you will be able to enjoy their huge customer base and get great results.

Amazon FBA program

4. Return and Exchange Policy

This is one of my favorite aspects of the Amazon FBA program model. You don’t have to worry about anything. Whether it’s packaging, shipping or returns. Customer service is a top priority for Amazon FBA. It will enable you to keep loyal customers.

5. Higher profits

Products that you can’t sell at a high profit on your website, you can sell at a higher price on Amazon. Again, all the credit goes to Amazon and its brand image.


Amazon FBA also has some disadvantages. Listed below for you to make a more informed decision.

1. No inventory record

Unfortunately, your unsold products accumulate. It can get big enough that you won’t be able to keep proper inventory records.

2. Competition is fierce

There’s no question that Amazon FBA program is a healthy bunch of competitors. You will not be able to use FBA alone. There are many other businesses selling the same products as yours. Therefore, it may be difficult to compete with experienced entrepreneurs.

Amazon FBA program

3. No guarantee of profit

You have to be careful when developing the mix of products you wish to sell, as it is unlikely that every product will bring you a profit.

4. Shipping Issues

Amazon FBA program makes it impossible on Earth to deliver flammable products.

5. Blind reliance

If Amazon decides to change its rules and remove your store from its platform, there’s not much you can do. All your efforts will be in vain.

6. No direct contact with customers

Amazon will keep full records of your customers, unfortunately, you won’t. What if you want to sell the same products to the same customers in the future? oops! Sorry, but you can’t because you’re too dependent on Amazon.

7. Service charges apply

You won’t be able to start an online business with FBA unless you have significant funding. Also, you need to pay Amazon a fixed amount to use their service.

Amazon FBA program
Amazon FBA program

Shipping Procedure of Amazon FBA program

1. Stocking: Provide information about commodity name, quantity, weight, volume, port of departure and destination.

2. Inspection: Responsible for inspecting the goods and helping to deal with the items to be inspected.

3. Air/Sea: After the goods are confirmed, they will be packaged and boarded according to the logistics plan, and after the warehouse scanning is completed, they will be shipped to FBA warehouses or foreign warehouses.

4. Export declaration: export goods declaration, general goods declaration, export tax rebate, ATA declaration, etc.

5. Arrival at the port: By air, FBA will arrange customs clearance after the goods arrive at the designated port. And make a reservation and send the goods to FBA’s warehouse.

You can hire an Amazon FBA freight forwarder to handle the entire shipment for you.

Amazon FBA program

The Costs of Amazon FBA program

Here’s the part everyone always wants to jump to — the cost. It’s going to cost money, but it doesn’t have to be a small fortune. For starters, think about things like how Amazon charges fees — in storage, items are charged based on size and weight, not cost.

For you, that means selling low-dollar items through FBA could cost more than it’s worth. Be deliberate in choosing what you do and don’t list through the FBA platform.

You pay storage fees and fulfillment fees with the Amazon FBA program. The more inventory you have stored, the more it’s going to cost you. Amazon also has this nifty thing where your costs go up for items that are stored for longer than 180 days, encouraging people to get and keep products moving.

In addition, Amazon tracks items that are in storage at an Amazon warehouse but are not listed for sale, or stranded inventory. Stranded inventory costs you money, but Amazon helps by providing a stranded inventory report.

You can find settlement fee reports in your reporting section of the Amazon FBA program dashboard, which will allow you to see what kind of fees you’re actually paying to Amazon as a part of this program.

Remember, too, that because of peak holiday demand, you’ll pay higher storage fees to warehouse your inventory during the holiday season than the rest of the year. This is the time to double-check your FBA listings and remove anything that won’t sell, so it’s not just sitting and costing you money.

Yes, there are a few different costs involved with Amazon FBA program, and there are some other factors related to pricing to consider. However, Amazon generally does well to provide useful information and assistance to ensure transparency as much as possible.

Ask Best Shipping Rate
shipping pallets
Shpping Guide

How to Pack Shipping Pallets | Best Guide from Xiongda

What is “shipping pallets “? Shipping pallets in international logistics refers to a certain number of scattered goods into a pallet (Pallet) for the purpose of facilitating loading and unloading, reducing cargo loss and discrepancy, improving the efficiency of loading, and reducing the cost of logistics – i.e., the process of changing from bulk goods

Read More »
Amazon product research
Shpping Guide

5 Best Guides to Do Amazon Product Research from Xiongda

How to do Amazon product research before importing from China? We can start from the following five dimensions. Heliun 10 is an Amazon product research tool that is recommended to use it. Doing Amazon product research Understand product categorization Understanding the product categorization, that is, understanding the product parameters, performance, and finding the target products

Read More »
Eliminate Amazon packaging
Industry News

News:Eliminate Amazon Packaging to Protect Environment

In a September 15 update, Amazon’s US site suddenly made an announcement about eliminate Amazon packaging. Due to the Amazon Accelerate conference launched including reducing packaging waste and environmentally friendly initiatives, it is expected that by 2024 (that is, next year) to all FBA sellers to reduce packaging waste by eliminating Amazon packaging, which is

Read More »

Know More About Xiongda

Ocean freight forwarding company from China to USA

Freight Logistics China Shipping Agent-Xiongda

Xiongda is a professional shipping agent in China since 2006, and with the 16 years of development, Xiongda now has 6 branches in China.

As an entrepreneur in China, Xiognda provides hundreds of jobs to let more people have work. And also Xiognda will take some charity events to give back to the society.

Door to door shipping freight

Shipping Logistics China To USA-Industry News

Xiongda has been staying focus on shipping from China to USA about 16 years. We will share the latest news in the shipping industry.

The latest industry news cover air and sea freight from China to USA, and FBA freight to USA. We can also provide the one stop shipping solutions, contact us if you need.

Shipping process from China to USA

China Freight Forwarder- Latest Post About Shipping

Shipping from China is easy with freight logistics China Xiognda, because we have been doing our work for about 16 years! We will share anything about shipping from China to USA.

We have rich experience in air and sea shipping, as well as the FBA freight to USA. Feel free to contact us if you need a shipping solution.

Scroll to Top
Xiongda always care about your products, and will provide full services in the freight progress.