Fulfillment by Amazon (FBA)
How to Ship Your Products to Customers
With FBA, your inventory is stored at an Amazon Fulfillment Center. You prep and ship your products to the fulfillment center(s) rather than sending them directly to the customer. When customers order your products, Amazon then picks, packs and ships them, as well as provides customer support on the products.
Fulfillment by Amazon (FBA) is one way to ship your products to customers. This Amazon service gives sellers assistance with storage, packaging and shipping.
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About FBA
Sales Soar 200% in the First Month of Utilizing FBA
A coffee company wanted to increase sales and their presence on Amazon. Obstacles like a short shelf life and shipping time needed to be evaluated. Sales increased within the first month by 200% allowing the company to be able to expand their selection available to Amazon customers sooner than anticipated. Read more.
Your 3 Shipping Options at a Glance
- Fulfillment by Amazon (FBA): Sellers ship inventory to Amazon. When an order is placed, Amazon then packs and ships the order to the customer. They also handle the customer service.
- Fulfillment by Merchant (FBM): Sellers are responsible for storing inventory, picking and shipping merchandise themselves or with the assistance of a 3PL (logistics partner).
- Seller Fulfilled Prime (SFP): This hybrid option allows the seller to fulfill their own orders, but they are awarded with the Prime badge. The catch? The seller covers the cost of the two-day shipping and/or restricts delivery to locations that UPS or FedEx ground can reach within two days. Sellers must qualify for the program and adhere to its extremely strict shipping deadlines.
How to Get Started with FBA
1. Set Up FBA
If you already have an Amazon Seller account, you can very simply add FBA to your existing account. If you don't have an Amazon Seller account, our team can help you get started today.
2. Create Your Product Listings
To do so, you can add your products to the Amazon catalog one at a time, in bulk or by integrating your inventory-management software with Amazon's API. This step is only required if you have not already listed a product on Amazon.
3. Convert Your Products to FBA
During this process, your items may go through a dangerous goods (or HAZMAT) review process. You may need to submit additional documentation (such as an SDS or an exemption sheet) to help Amazon classify your product.
Depending on Amazon's findings, your product may or not be eligible for FBA. In some instances where a product is ineligible, you may be able to apply for the FBA Dangerous Goods program which does allow limited quantities of some dangerous items (such as aerosols and flammable items) to be admitted into FBA.
4. Prep Your Products
In order to ensure that your products are safely and securely transported to your customers, they have to be properly prepared for shipping to an FBA fulfillment center. Need help? We can help you determine exactly what you’ll need to ship your products to a fulfillment center with confidence.
5. Ship Your Products to Amazon
Create a plan for shipping. Partner with a carrier, and ship and track your product to Amazon Fulfillment Centers. Amazon's online seller tools can help guide you through every step of the process.
6. Customers Order, Amazon Delivers
Every customer who orders one of your products can enjoy efficient, often free, shipping courtesy of Amazon. Amazon’s advanced, web-to-warehouse, high-speed picking and sorting system ensures that your customers will receive a 5-star shipping experience from purchase through delivery.
7. Amazon Provides Customer Support
The perks of Fulfillment by Amazon (FBA) don’t end when the product is delivered. Amazon’s world-class customer service team will manage any customer inquiries, refunds and returns for orders related to your FBA products, 24 hours a day, seven days a week.
Benefits of FBA
Although mastering FBA can be time-consuming and sometimes challenging, it is one of the biggest competitive advantages you can have over other sellers.
Competitive Shipping & Prime Eligibility
Your FBA products are eligible for free two-day shipping with Amazon Prime, as well as free shipping on eligible orders for all Amazon.com customers.
Focus on Growth
Amazon's dashboard gives you 24/7 access to see what is selling and what is sitting, as well as what inventory you can restock. This helps you to properly manage inventory levels while leaving all the shipping details to Amazon. Thus allowing you to focus more attention on growing your business.
Amazon Equity
FBA products are listed with the Prime logo, so customers know that Amazon handles packing, delivery, customer service and returns. They also are confident that they'll receive their order fast.
Cost Effective
With FBA, you pay as you go. Amazon charges sellers only for storage space they use and the orders Amazon fulfills on their behalf. The cost of shipping is included in a seller’s FBA fees, with no extra charge for the above-mentioned shipping benefits.
Amazon FBA Fees & Rates Explained
Amazon operates its Fulfillment by Amazon (FBA) fees and rates on a “pay as you use” model. With FBA, you enjoy access to optional features and services, and flexible rate structures that help you easily manage and grow your business. At Awesome Dynamic, we can help you estimate your FBA fees based on the standard FBA storage and fulfillment fees listed below.
Fulfillment Fees
Fulfillment fees are charged per unit and include picking and packing your orders, shipping and handling, customer service and product return services. Unit prices vary based on product size (standard or oversized) and weight.
Monthly Storage Fees
Monthly inventory storage is charged per cubic foot. Fees are charged for all units stored in an Amazon Fulfillment Center based on the calendar month and your daily average volume. Just like standard fulfillment fees, monthly storage fees vary for standard and oversized products.
Additional Fees*
Fulfillment and monthly storage fees aside, other fees include long-term storage fees, removal fees, disposal fees, labeling fees (if using Amazon’s labeling service) and prep fees (if using Amazon’s prep service). The above video has everything you need to know about Amazon’s FBA fees.
* Intended to be used and must be used for informational purposes only. Fees may be changed by Amazon at any time.
Expand Your Sales Globally
FBA benefits aren’t restricted to the US marketplace. Our Amazon Consulting team can show you how to tap into Amazon’s global network to reach more customers all over the world.
Amazon Global Selling
Amazon’s Global Selling program is the most expansive way to use Amazon’s global equity to reach millions of worldwide customers.
Pan-European FBA
By signing up for Pan-European FBA, you can expand your reach to Prime-eligible countries in Europe. Plus, Amazon will manage customer service for your orders in the languages of five European markets. Learn more about selling in Europe here.
FBA Export
Check your FBA Export status and, if eligible, extend your business to more than 100 countries – at no extra charge and without the hassle of navigating international selling.
Expand to Europe
Start selling in Europe and diversify your revenue and clientele while Amazon handles all the details of selling across borders.
Improve Your Supply Chain Management
FBA greatly streamlines your product distribution. With the following tools, supply chain management becomes even easier:
Partnered Carrier Program
Ship in bulk with a partnered carrier and enjoy discounted rates on inventory pickup and delivery to Amazon Fulfillment Centers.
Multi-Channel Fulfillment
Sell from a third-party or your own eCommerce sites, and Amazon will pick, pack and ship products directly to your customers.
FBA Prep Service
With FBA Prep Service, Amazon labels, bags, wraps, boxes and preps your products for shipment.
Additional Options
In addition to all the incredible tools and resources listed above, Amazon’s FBA program offers specialized services that can help you scale your operations without investing in additional capital or manpower.
Small & Light
FBA Small and Light helps you cut back on the cost of fulfilling orders for small, low-cost and lightweight inventory.
Subscribe & Save
Amazon’s FBA Subscribe & Save program allows sellers to offer repeat customers valuable discounts on eligible FBA products.
How Awesome Dynamic Can Assist
As you can see, the Amazon FBA program presents sellers with major opportunities to streamline their distribution and increase their sales – both domestically and abroad. Unfortunately, it can be tough for busy Amazon sellers to navigate the wide variety of FBA products and services available all on their own. That’s where we come in. At Awesome Dynamic, we can help you determine how FBA best fits into your business and handle the ongoing management of your FBA account.
Our FBA Services Include:
✓ Discovering Whether or Not FBA is Right for You
Our team will determine your Amazon FBA eligibility and help you find the right fit for your product and business.
✓ Prime Badge
With our consultation, you can achieve the coveted "Prime badge" for your listings and help boost sales.
✓ Inventory
We can help you track your inventory levels to keep your stock at a healthy level and ensure your product is always available to your customers.
✓ Strategy
We’ll put together your plan and strategy for inventory management and restocking.
✓ Preparation
Our team is happy to help you prepare, label and ship products properly to create consistency for your customers.
✓ Shipping Options
We’ll determine the most cost-effective way to ship your products into Amazon Fulfillment Centers.
✓ Testing
FBA products must pass a 3-foot drop test, consisting of one drop on each side, and one on a corner.
✓ Overstock
We’ll handle the management of your excess inventory, inventory velocity, liquidation, disposal and removal orders.
✓ Logistics
Our team can assess packing costs and find the most efficient packing strategy for your Amazon business.
✓ Fees
We’ll calculate FBA fulfillment and storage fees, and share how they impact your eCommerce business.
✓ FBA Position
Our team can conduct an FBA viability analysis to help you decide your profit margin after FBA fees.
✓ Analysis
We’ll analyze whether FBA is right for you and, if so, develop a strategy to convert your business to FBA.
Reap the Rewards
FBA is not right for every seller, but it tends to work very well for those whose business model and selling strategies meet certain criteria. Typical benefits include:
- Decrease fees associated for incorrectly prepared products
- Eliminate concerns regarding daily order fulfillment
- Majority of customer service handled by Amazon
- Fulfillment problems handled by Amazon
- Reduce the likelihood of out of stock situations
- Outsourced storage and fulfillment center
- Two-day shipping on most products
- Gain influence over the Buy Box
- Increase sales volume
- Maximize bottom line
