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  • Writer's pictureNicholas

Fulfillment by Amazon: Benefits and Basics

Updated: Jan 10, 2019


So have you decided that it's time to take back control of your brands Amazon destiny? Yes? Then you are in the right place. Over the course of this blog series I will walk you through everything Fulfillment by Amazon, or FBA for short, has to offer. Brand decisions are never easy and choosing to move your business to an FBA model could be the most impactful decision you have made yet.


While this decision is scary it is important to remember the consequences of waiting are even scarier. Over 60,000 brands have made the decision to register with Amazon and every

day you wait the further behind your brand will fall.


Moving to an FBA model has so many benefits for all brands, large or small. Amazon offers a comprehensive list of services including free 2-day shipping for your customers, trusted customer service and return management, inventory management tools, access to PPC campaigns, and so much more.


In addition to the above, you will have access to a massive pool of Prime member. Amazon announced in 2018 that Prime memberships surpassed 100 million. By moving your brand to an FBA model you will have access to those 100 million customers that spend more than double that of what non-prime members spend.



 


Fulfillment by Amazon - The Benefits


Joining the FBA network provide by Amazon has a myriad of benefits including the below:


  • Eligibility for free shipping on qualifying orders

  • Fulfillment by Amazon

  • Customer Service and Return Management

  • Inventory Management Tools

  • Competitive Pricing

  • And so much more



Free Shipping and Fulfillment by Amazon


When discussing the benefits of utilizing FBA you have to start with free two-day shipping. By selling your products through FBA you give your customers access to free two-day shipping on all qualifying orders. Amazon will store, pick and pack, and ship your products directly to the consumer from their fulfillment centers. With over 100 million Prime members you can be sure your brand will be seen by new and old customers alike.



Customer Service and Return Management


We all know providing the customer with the best service possible is the golden rule of retail. So what happens when someone orders your product through Amazon and has a negative experience? Amazon has staff dedicated to handling all customer complaints and return requests. If a customer has a negative experience you can be sure Amazon will try to resolve the problem. As a seller of your own brand you will also have the ability to communicate directly with customers to ensure your brand is well represented and your customers are happy!



Inventory Management Tools


Amazon offers a comprehensive suite of tools within Seller Central designed to help you manage your inventory. By utilizing these tools you can ensure you never run out of stock. These tools will also let you handle any inventory issues that might arise within the fulfillment centers, create removal orders if needed, or send products directly to customers yourself!



Fulfillment by Amazon - The Basics


So you're thinking to yourself "This all sounds great but what exactly IS Fulfillment by Amazon?” Don’t worry, we have you covered.



Utilizing FBA is a relatively straightforward process and consist of five primary steps that we will walk through below. All of the below steps will be done through your Amazon Seller Central account. If you don't have an account, we can help! Contact us below to find out how to get started.



Step One - Sending Products into Amazon


Sending your products into an Amazon Fulfillment Center is the first step in getting them to your customers. If your company is adept in shipping then getting your products into Amazon will come easy. There are certain requirements Amazon enforces when sending products to a fulfillment center which is covered in our later blog - Fulfillment by Amazon: Item Prep and Shipping Requirements. Once your shipment is ready to go simply schedule a pickup through Amazon’s partnered shipping or select your own carrier!



Step Two - Storing your Products at Amazon


Once the carrier arrives at the Amazon fulfillment center your shipment will be checked in and allocated to your inventory all of which can be monitored through Seller Central. Once inventory arrives Amazon will either store it at the original fulfillment center or move it around the country to locations closest to your customers! The Amazon fulfillment center will act as a warehouse for your products but this service isn't free so it's important to be mindful of the fees being charged. For more on storage fees read Fulfillment by Amazon: FBA: Fees and Return Management.



Step Three - Customer Orders


Customers placing an order through Amazon will experience the best service possible. As brand owner you will have the ability to customize this page to increase brand awareness, provide important information, images, and so much more. The product page is one of the most important factors in ensuring a great experience for your customer. To learn more check out our post Fulfillment by Amazon: Listing Optimization.



Step Four - Amazon Picks and Packs your Product


Once the order has been placed Amazon will pick and pack your product and ensure its ready for shipping. This step is so easy writing a blog post to explain it isn't necessary!



Step Five - Amazon Ships your Product


Once your product has been packed Amazon will ship the product to your customer from one of their fulfillment centers. Amazon ships customer orders using the method they choose and will provide tracking information for the customer. Any order placed through FBA will have access to Amazons customer service team and all returns are processed by Amazon.


 

Through this simple process, your customers will have access to everything that FBA has to offer and more.


If you are ready to take the next step towards growing your brand on Amazon, Teal Management would love to help! Please reach out to us below for a free consultation. If you would like to continue reading our blog please see our next post - Fulfillment by Amazon: FBA: Fees and Return Management.


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