What is Fulfillment by Amazon?

Globalblue November 26, 2020

What is Fulfillment by Amazon?
If you are an Amazon seller, chances are you must have heard this phrase ‘Fulfillment by Amazon’ or FBA. Basically, it is an Amazon service that provides storage, packaging, and shipping support to its sellers. The main purpose of FBA is to unload the burden off sellers and give them flexibility in their practices. The service allows the seller to ship their products to an Amazon fulfillment center where items are stored in warehouses. With this service, sellers can automate their order and earn more sales fulfillment by taking advantage of Amazon’s advanced shipping and fulfillment services. Any business, small or big, can avail of this service and get their products to a big pool of customers.

How does FBA work?
i. Firstly, you send your products to Amazon.
ii. Amazon then sorts and stores these products in their warehouses and adds them to their inventory. The products are now a responsibility of Amazon.
iii. Now when a customer orders products, the Amazon team prepares, packages, handles the shipping, and tracks the order of the product(s). In short, they take care of the entire transaction.
iv. Amazon also handles any returns, exchanges, and refunds.
v. Further, the Amazon team also addresses any queries from the customer and follows up with them to make sure they are satisfied. Meanwhile, it is your responsibility to take action on any feedback.
vi. As a seller, you will get paid at regular intervals. Amazon totals up your sales, deducts seller fees, and deposits the profits you have made.

Benefits of using FBA
FBA does not just mean you unload your burden as a seller, it also means you can attract more customers since brands available specifically to Prime buyers are the ones utilizing FBA. It is known that out of 10,000 Amazon sellers, 60% are currently using FBA. Here are a few benefits you will receive using this service.
i. Smooth logistics and shipping: As a seller, increased sales brings both happiness and also increased packaging and shipping. With FBA, you can outsource the entire process and take advantage of Amazon’s service.
ii. Managing returns: A lot of seller’s time is consumed by customers as well as handling their returns- all those admin aspects. You now have Amazon to take care of it all.
iii. Enhanced customer service: Amazon ensures your customers are provided necessary support via call, chat, or email.
iv. Unlimited storage: You don’t have to worry at all about your storage space.
v. Fast delivery: With Amazon fulfillment centers all around the world, you can be assured that products will get delivered within a couple of days.
vi. Association with Amazon: As a seller, being associated with Amazon will help you earn the trust of your customers who expect great customer service and delivery with FBA.

Needless to say, one easy way to make your Amazon business logistics effortless is through the FBA service. Even though Amazon does most of the work for you, you will still have to pick the products and keep your inventory in stock. Have Alep Digital’s experienced team help you in this process with a tailored plan to maximize the FBA service and escalate your reach to more customers.

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