Benefits Of Selling Items Via Amazon.com Essay
AllRoad Parts’ competitive strategy is focus differentiation as they would like to be the largest inventory of spare parts. However, this approach poses a threat from 3D printing rivals and the extra costs involved with inventory.
3-5. Summarize the advantages and disadvantages for AllRoad Parts to sell items via Amazon.com. Would you recommend that the company do so? The advantages of selling items via Amazon.com include paying a small fee every month that includes packing and shipping, inventory, customer support 24/7 in the languages of the marketplaces it sells. Therefore, AllRoad Parts’ can save money on storage space, shipping protocols, returns, and increased chances of landing a sale because of Amazon’s reputation and global market (The Advantages and Disadvantages of Using FBA). However, the disadvantages are that companies are required to pay the FBA fees regardless of sales, order volume issues due to inventory, and increase competition with other sellers in the same market. The increase in competition is a huge disadvantage as this can drive down the profits.
I would recommend for AllRoad Parts’ to use FBA because the advantages outweigh the disadvantages. However, I would advise them to use a pricing method to ensure they stay competitive while they are doing business with Amazon. 3-6. For items that it sells itself, compute AllRoad Parts’ cost of using FBA to process:
a. An order of 10…