FBA on the up

New research suggests that more sellers than ever have moved onto the Fulfilled By Amazon (FBA) marketplace warehousing and delivery offering.

In a notice posted on its website last week, Marketplace Pulse said: “Since the last time we looked at FBA usage among marketplace sellers in January, it has grown in all countries.”

Marketplace Pulse added: “Based on our research we didn’t see much growth among top sellers in the US – it only went up by one point to 58 percent. This can be explained by already high FBA penetration, and the stability of the market.

“However all European markets have grown considerably, by 3 to 5 percentage points. We think there is a lot of interest from foreign sellers to sell there, both from China and from the US, so they are pushing the FBA usage.

“World wide the growth of Prime memberships is resulting in FBA usage growth. There are some categories left which still work better when merchant fulfilled (used books for example), but long-term Amazon wants to see only Prime-eligible products. We think the pressure for sellers to use FBA will continue to rise.”

FBA is a great opportunity for sellers to have their goods stored and sent without having to set up their own fulfilment centre. While it adds to the costs by comparison to going it alone, FBA has been shown to help in volumes of sales. With other firms coming into competition with Amazon for the offering, prices are set to fall as competition increases.
 
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