Amazon has dozens of warehouses all over the country, and more around the world, so your products may be in your customers’ hands quickly. This can cause delays in your customers’ shipments. Then one of these states came after him for back taxes. Amazon Seller Horror Stories – What to look out for when selling on Amazon! Amazon FBA sometimes falls short in this crucial metric. The inventory that’s on the shelves and logged into the system is the inventory your 3PL warehouse can pick, pack and ship to your customers. Content Manager at RepricerExpress. To do that, it has efficient systems in place. To explain it, let’s go back to Bob in Florida. That can damage his seller reputation, even though he didn’t market substandard goods under false pretenses. Since Red Stag has warehouses in just two states and our clients have full transparency about where their inventory is stored, the additional sales tax paperwork is manageable for Bob. Then Zelda in Eugene, Oregon orders a Rise ‘N Shine coffeemaker from Bob. While Amazon FBA does offer multi-channel fulfillment, orders from your website and other platforms will still be sent in Amazon boxes. And, during the coronavirus in spring 2020, FBA announced it would only accept shipments of goods it categorized as necessities. Red Chain Logo image created by D3images - Freepik.com. It’s hard to keep tabs on exactly where these fulfillment centers are located. For instance, I just shipped 30 units of a new product in to Amazon a couple of weeks ago. The inventory that’s on the shelves and logged into the system is the inventory your 3PL warehouse can pick, pack and ship to your customers. Create a Responsive Supply Chain to Handle Peaks and Lulls! Amazon FBA sometimes falls short in this crucial metric. 7 Reasons to Hire on Contract for Supply Chain! For example, thousands of FBA sellers were severely impacted when Amazon enforced last minute changes to their inventory storage policy just before the holidays. Mistakes like this have happened to more than one seller. Amazon runs an enormous fulfillment and logistics business. In South Carolina, the courts ruled that Amazon, not the Marketplace sellers, had to pay uncollected back taxes. However, Bob in Florida gets credit for the sale. Problems can sometimes take weeks to resolve.On the flip side, Amazon FBA will handle customer service when your customers have an issue. The bottom line is that FBA can lead to sales tax problems that bite into your bottom line. The company may move his blenders and toasters from one warehouse to another. There are some benefits to this inventory flexibility. In the name of efficiency, Amazon ships a Rise ‘N Shine coffeemaker from its California fulfillment center to Zelda in Eugene, but Bob in Florida gets credit for the sale. Whatever your margin on an item, you’ll have to absorb the shipping costs for Amazon Prime orders. Every Wednesday, there’s a pinned thread called ‘Wantrepreneur Wednesday’ where aspiring entrepreneurs super new to entrepreneuring get to ask whatever questions are on their mind. One seller testified to the House Committee on Small Business about the consequences of Amazon moving his company’s goods to different FBA warehouses. It’s hard to keep tabs on exactly where these fulfillment centers are located because Amazon doesn’t like to reveal this information. Amazon runs an enormous fulfillment and logistics business. The inventory that’s on the shelves and logged into the system is ready for your orders. How to Sell on Amazon! It saves on shipping time and costs, which is good for Bob and his customer. If establishing a strong brand is important to you, you’ll have to look beyond Amazon FBA. But what if the item in the California warehouse is actually a knockoff another merchant is selling under the same SKU? While you’re visiting all the best subreddits on Amazon FBA, make sure to have your favourite repricing tool, RepricerExpress, running in the background. This is the inventory your 3PL warehouse can pick, pack and ship to your customers. No one likes talking to an irate customer, so outsourcing your customer service may be a blessing. Problems can sometimes take weeks to resolve. We can also kit your inventory to increase your sales (and disassemble kits, if you need the product) to ensure you’re shipping an optimized number of parcels per order. Amazon’s practice of moving inventory to different warehouses without informing the seller has led to serious tax problems for some Marketplace merchants. Chris loves to travel and has previously worked at Tourism Ireland. Is this a risk you are willing to take? And one Pennsylvania seller got a sales tax bill of $1.6 million from California. You don’t have the option to include a personal note from you to your customer or to ship in a box with your brand or even a neutral box. However, some Amazon FBA seller mistakes are minor bumps in the road, while others can end up costing you thousands of dollars — or even your business altogether (and the goal, of course, is to succeed!. At Red Stag, for example, we can add inserts and personalized marketing materials to your customers orders, or help you source uniquely branded boxes and even tissue paper with your company’s logo. You won’t find services like these, which require personal attention and expanded capabilities, at Fulfillment by Amazon. Q4 of 2016, in particular, created less than ideal press for the company when a British jury found Amazon UK guilty of shipping hazardous materials by air without proper labeling or packaging. If you’re like most entrepreneurs, you want control over every aspect of your business so you can make sure it runs properly. If Bob signs up for Amazon FBA instead, however, he could open a sales tax nexus can of worms. If Bob signs up for Amazon FBA instead, however, he could open a sales tax nexus can of worms. Amazon FBA won’t tell Bob where his inventory is stored. Whatever your margin on an item, you’ll have to absorb the shipping costs for Amazon Prime orders. You’ll be pretty hard-pressed to find a topic not being discussed on there. Quoting: "Amazon Web Services has confirmed that its Elastic Block Storage (EBS) service is experiencing degraded service, leading sites across the Internet to experience downtime, including Reddit, Imgur and many others.AWS confirmed on its status page at 2:11 p.m. This site uses Akismet to reduce spam. And while you should also use Amazon’s own site as the go-to for policies and rules, /r/FulfillmentByAmazon is a really user-friendly way of learning about the general concepts first. All Rights Reserved, 10 Best Dropshipping Plugins for WordPress, 10 Best Amazon Keyword Tools for FBA Sellers in 2020, Awesome Amazon Black Friday Selling Tips from FBA Sellers.