What is Amazon FBA? What are its Impacts on Pakistan?

FBA stands for Fulfilment by Amazon. Amazon works for third party sellers. Amazon FBA works for automation of third party sellers in fulfilment and shipping services. It works at a simple concept i.e, sellers sell and Amazon ships. The sellers which have enrolled in Amazon FBA can let Amazon to handle all the shipping including all returns and funds. Additionally, Amazon also takes care of the warehousing, all products are packed by Amazon warehouse, picked, packed and delivered.

Once the sellers send their products to Amazon, where the warehouse is. Amazon takes care of the products, store them and on receiving the orders, deliver it to the destination. As long as you are getting the sales, there is no need to worry about other things. Now Amazon is responsible for the rest of the process.

Here comes the question about fulfilment fees. Are sellers complied to pay a fees for this? Yes, sellers have to pay a fees for FBA Amazon, the sellers will get the following services in exchange of the money.

• Amazon customer service is always available for you.
• All fulfilment and shipping costs (pick, pack and ship) are included in fees.
• Seller will get access to world’s biggest fulfilment networks.  

With the advent of global pandemic in 2019, the use of Amazon has increased drastically worldwide having more than 300 million active customers around the world. Amazon still thrived to serve very enthusiastically. There is an increase in the sales chain of Amazon.

Impact of Amazon FBA Business in Pakistan

Amazon Pakistan has recently enabled in Pakistan. People and economist are well-aware of Amazon and its operation across the world. In Pakistan to, many people want to purchase products from Amazon. Besides purchasing many people want to be a seller through this platform. By addition of FBA Amazon, the process of selling has become more easy. There are almost 2 million sellers selling their goods on Amazon globally.

Currently, there is a little knowledge and information available for Amazon Pakistan but Government and some economists are trying to spread information. People are getting trainings for Amazon Seller’s Account, Amazon login, Amazon Prime, Amazon FBA. There is a little knowledge about FBA in Pakistan but many experts are trying to aware sellers from the grass root level.

Advantages of Amazon FBA in Pakistan

There are many direct and indirect advantages to get enroll in Amazon FBA Pakistan. These advantages are as follows:

1. As Pakistan was previously banned from Amazon list for some of its bad quality products. If sellers register their businesses in Amazon FBA business, there will be no issue of quality. FBA approves the products in their warehouse after their quality assurance. In packing and delivery, they make sure that products remain intact. Buyers have also developed a trust on FBA Amazon. In this way, there will be more customer PR networking.
2. Through FBA Amazon, there will be no storage and shipment fees. Sellers don’t have to pay this money again and again. Instead, they will be paying a collective amount to Amazon FBA which will be baring their expenses. This is how a seller will be saving his money from shipment, packing and storage cost.
3. There is a decrease in effort of seller after enrolling in FBA Amazon. Sellers just have to take care of the sales and communicate with the customers. Rest burden in of FBA. The decrease of strain will benefit the seller because this way they can make more sales. Also there is no tension of quality, time and conduct. All will be done by a trustworthy retailer.
4. In addition to sales, FBA is also going to take care of the returns and refunds because all the responsibilities now fall on FBA.
5. Through Pakistan, the delivery of products might be a bit difficult but Amazon FBA ensures quick delivery along with no hindrance.
6. Through FBA Amazon, the seller can access to different multichannel fulfilment solutions like MCF service or Amazon Multichannel Fulfilment. It allows you to sell your product on various platforms.

Amazon Pakistan is soon launching but there is still be need to see each and every process keenly and then choose it.

For getting insight about how Amazon Pakistan will affect the economy, Click Here