The Benefit of Fulfillment By Amazon (FBA Program)
When we talk about selling products online, most people think of having their own fulfilment center, warehouse or using their house to store inventory and sending through the post office to get the product to the buyer. A lot has changed since the inception of a program called “Fulfillment By Amazon (FBA for short)”. FBA is a paid option for Amazon sellers who do not wish to bother with fulfillment of their products. Amazon takes care of most of the process of fulfillment such as keeping, packing, and shipping your goods/inventory.
Amazon has established fulfillment centers where sellers send their inventory/products to, where Amazon stores, packs and ship the products to buyers/customer whenever a buying request is made.
Amazon FBA is an opportunity for you as a seller to leverage the network, expertise and resources of Amazon for your business and your customers benefit. As you send your products to Amazon fulfillment Centers, Amazon takes over.
This gives you ample time to spend on the only work that is necessary at your end which is to find inventory/products to sell on Amazon, focus more on marketing and promotion of your products. You can decide to go out and source for this goods on specific days of the week or ordering for these goods online whenever you choose, process the inventory by tagging them as necessary so that Amazon knows it’s yours and sending to the specified Fulfillment center though your preferred shipping company (Amazon tells you where to send a particular inventory to).
The tagging with your stickers, labelling and shipping to the Fulfillment Center of can be done at your house or taking care of be the manufacturer you are ordering from.
The FBA program works in a simple way where you market and find customers to buy your products and Amazon takes care of the shipping.
Sellers have the option to choose which of their products they will like to fulfill through FBA, depending on their margins, product category, and related seller variables.
FBA is a good option for merchants who are looking to speed-up shipping time, and reduce time and money allotted for fulfilment if they were to do this themselves.
Other Benefits of Leveraging FBA are:
Less Business Operation: FBA eliminates fulfillment shipping efforts for sellers, instead of taking care of warehouse management, handling, shipping, picking and customer service, sellers can pass these tasks to Amazon.
Opportunity To Sell More: Amazon prime customers tend to purchase more and more frequently than traditional Amazon shoppers. Using FBA increases product discovery as FBA products feature Prime shipping, and show up for Prime filtered searches.
Trusted Customer Service And Returns: Amazon takes care of customer service and returns with FBA orders, which takes the burden off sellers who are not customer service specialists.
Increased Shipping Speed: buyers enjoy quicker shipping as FBA products are shipped from Amazon a faster rate than other products form other retailers, and 24/7 customers service and delivery tracking through Amazon available to buyers.
More Sales And Growth: FBA helps sellers sell more of their product with minimal effort through this program. FBA is capable of handling any inventory and order requirement with nom minimum number of units helping sellers to scale seamlessly, saving them time to focus on the business side of things such as marketing.
Free Two-Day Shipping:your products are eligible for Amazon Prime Free Two-Day Shipping, Free Shiping and Other benefits on orders over $35.This increases customer awareness of no shipping cost or discounted shipping because most FBA listings rank higher and get an edge over other sellers.
Cost Effective And Simple: you will be charged pay as you go for storage space and others fulfilled, where the cost of shipping is included in the fees with no extra charge for Amazon Prime Two-Day Free Shipping and Free shipping on orders of $35.
On Time Payment: Amazon FBA payments come in after 2 weeks, Amazon vendors often have to wait 90 days for payment.
Discounted Currier Service: Amazon’s Partnered Carrier feature offers deeply discounted rates for FBA seller shipping small parcels for deliveries into Amazon fulfillment centers or you are free to use the carrier you want. Shipping with this Amazon partnered carrier leverages Amazon’s fulfillment expertise giving you shipment visibility and peace of mind.
You are able to track your shipment from your location all the way to the Amazon fulfillment center, and Amazon takes care of the rest.
Win-Win: Amazon wants you to succeed and they have put together educational program to provide you with tips and tools needed to manage and get the best out of the FBA program