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How Amazon Fulfillment Services are Beneficial to your Businesses?

July 10, 2020

How Amazon Fulfillment Services are Beneficial to your Businesses?

In the present business scenario when e-commerce is a prevalent method for an entrepreneur to reach its customers, the role of a logistics and supply chain can’t be undermined. It is the logistics and supply chain that delivers a product packaged and adequately labeled at the doorsteps of a customer. Unlike other shipping methods, Amazon fulfillment services are unique in terms of the benefits offered by it to the seller. Offered as standard service Fulfillment by Amazon (FBA) is an integrated fulfillment service linked to Amazon marketplaces as well as external sales channels other than Amazon.

The Amazon fulfillment within the Amazon marketplace is known to be as FBA and for external sales channels, it is referred to as FBA-Multi-Channel Fulfillment. An integral constituent of eCommerce fulfillment services Amazon fulfillment has two major parts.

  • FBA (Fulfillment By Amazon)
  • FBA- Multi-Channel Fulfillment

FBA (Fulfillment by Amazon)

Coined around the basics of eCommerce fulfillment services Amazon FBA ships a seller’s orders received from the Amazon website or Amazon marketplace. In comparison to any other third logistic services provider 3PL company, Amazon FBA boasts one of the most advanced and wider fulfillment networks in the world. As a seller a person first of all stores its products at Amazon fulfillment centers that are huge e-commerce fulfillment warehouses. Amazon receiving order against the stocked items for a seller further picks, packs,s, and ship that products to the designated customer’s doorstep. In addition, Amazon FBA also provides customer services for the shipped products for any query. By handling return as well as refund Amazon FBA helps a business to scale up and to have access to as many as customers.

How to join FBA for Utilizing Amazon Fulfillment Service?

A seller in order to avail benefits offered by Amazon FBA is required to follow the below-mentioned steps.

Seller Central Sign Up

This is the first step of the seller’s journey on Amazon FBA. He is required to create an Amazon selling account in order to set up an FBA account.

Product Listing Creation

The next step after the sign-up is listing the items into the Amazon catalog and direct them to Amazon FBA.

Making Items Prepared for Amazon Fulfillment Center

On the seller, part to make products to be Amazon FBA compatible, a seller at this stage make product prepared according to Amazon shipping guideline before sending them to Amazon Fulfillment center.

Driving Prepared Items to Amazon Fulfillment Center

This is another crucial step for using an Amazon FBA service. Under this step, a seller creates his own shipping plan, print Amazon shipment ID labels, and then finally send the consignment to an Amazon fulfillment center.

Why a seller should choose Amazon FBA over other 3PL service providers?

Along with world-class Amazon fulfillment services, there, are a plethora of reasons that a seller should choose Amazon FAB services to cater to its fulfillment of specific business requirements. The list of important benefits offered by Amazon FBA to a seller as follows.

Prime Two Day Free Shipping

With listing your items with Amazon FBA, they immediately become eligible for Amazon Prime Two Day Shipping. A seller’s listing therefore on the Amazon portal is displayed with a prime logo thus making his products be preferred choice for a seller. A prime logo tells a seller that a particular item is being packed and shipped by Amazon along with additional benefits of customer service and refund.

Unmatched Customer and Return Services

Additional leverage offered by Amazon FBA to the seller by Amazon FBA is, its state-of-the-art customer services offered to a seller. Amazon FBA not only customer queries from across the globe at the same time offer seamless and reliable returns and refunds.

  • FBA Customer Services: A seller enjoys outstanding customer services on his behalf by Amazon FBA absolutely without any charge. The service is provided to a seller’s customers day and night around the clock.
  • FBA Returns: It is just not customer queries as well as returns that are managed by Amazon FBA on the behalf of the seller. A customer care executive guides a customer on how to get a return and refund for a product for which he is not satisfied.

Immense Business Scalability Features

Amazon Fulfillment not only provides good eCommerce fulfillment services and shipping at the same time it offers multiple opportunities to seller to scale up its business activities in terms of increased ROI and profitability. It presents immense business scalability features like:-

  • The charges for small, low-cost, and lightweight inventory are too low on Amazon FBA.
  • The discount offers are given on certain FBA products to repeat customers.
  • Fast shipping and delivery for prime customers in the European Union.
  • Present an opportunity to expand business in more than 100 countries.
  • Allows a seller to sell from third-party e-commerce sites with Amazon picking, packing, and shipping facilities.

Most Competitive Pricing in the Market

The fee structure for Amazon FBA is the most competitive and best in comparison to other 3PL providers in the market. A seller is charged for the storage space and orders fulfilled. The cost of shipping is included in fees without any Amazon Prime fee and absolutely free shipping for appropriate orders. The most common Amazon fulfillment fees charged include.

  • Inventory storage fees: This fee is charged from a seller for his items stored at the Amazon fulfillment center and on the basis of daily average volume measured in cubic feet.
  • Long-Duration storage charges: Charged from a seller once in a month, this fee is taken from a seller against storing goods in a fulfillment center for more than the duration of 365 days. The constant in and outflow of items from inventory prevents a seller from paying long term storage fees.
  • Fulfillment fees: This fee is charged on the basis of per unit picking and packing or orders. The fees for customer service and returns are also included within this structure. One can use the FBA revenue calculator for the estimation of this fee and preview the fee structure
  • Order Removal Fees: A seller is even charged for if he disposes of his inventory or Amazon return on the basis of a per-item fee.
  • Returns processing fees: This fee is charged when Amazon arranges free return shipping for a customer on behalf of the order of an Amazon seller.