I felt I can provide data here, FBA is not the end of the road, there are more levels so to say, FBA and prime etc.
Now, FBA has some potential pitfalls.
- VAT, Amazon will often store in a country where its most economical for them, ie, for German sellers, there will be a warehouse just after the Polish border etc. They will do this unless you explicitly disable this. This leads to very complicated VAT fillings and correction
- Lost, stolen, damaged cargo. If your merchandise gets damaged or stolen etc, its not so easy to get new storage space allocated/assigned.
- Recalls, if your ASIN is subject to a recall, god help you, if you use amazon, you will have penalty points on the account health page, affecting many other things. All and and FBA ASINs affected , whether youre selling it or someone else need to be removed. The recall is only finished after that. And youre paying for the storage or recovery or disposal.
- Shipping confirmation. You are supposed to inform about any package and order status very soon after the order is placed. Same for tracking status. Now, sometimes the Amazon api for that is buggy and you get heavy markdowns on account health even though you provide the data, just the feed dont work.
Still, when its all said and done, Amazon offers the best product and logistics if you just want to sell your product.
There is no way any competitor can offer the same quality at a better price.
Keep in mind, whatever the percentage is, the ecommerce business has a margin in the single digits, all of Amazon is subsidised by the money making machine AWS.