What is Fulfillment by Amazon (FBA)?
Fulfillment by Amazon (FBA) is a fantastic service that essentially provides access to the extensive and efficient global Amazon product handling and shipping network. This allows your business to grow without the need for investment in these costly additional business functions.
Imagine someone else handling everything for you from packing, shipping, and even customer service for your business! When you send your products to an Amazon fulfillment center you can leave the bulk of the handling and shipping efforts to an expert.
You now have time to focus on developing and investing in your product, instead of wasting time and money on areas of the business that may not be your core competency.
Difference between Amazon FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant)
The obvious main difference between Amazon FBA and completing the shipping, handling, and customer service yourself, is the cost and time savings.
Both the seller and customer alike benefit from the scale and efficiency of the Amazon FBA setup.
However, there are rare exceptions where it may suit your business to handle the e-commerce fulfillment services of orders. In some instances, you may run out of stock at the FBA and need to fulfill orders in-house. Also, if you are dealing with furniture or similar large products it is more efficient to ship and handle these yourself, as the FBAs are not set up for this type of product.
Amazon FBA Eligibility Criteria
To access Amazon’s FBA service several requirements need to be satisfied. These include:
1. Product Requirements:-
Before you begin the registration process it is pertinent to check whether your product will meet the Amazon product requirements. There are restrictions on the type of product that Amazon will ship and handle in their warehousing services. The product needs to be legal in the United States. The FBA cannot handle or ship products not permitted for sale in the United States, even if they are accepted elsewhere. There are specific products that may be restricted including items such as gift cards and certificates, loose batteries, tires for vehicles, and even paper lanterns!
Another factor that could affect your products’ eligibility is the FBA’s strict packaging requirements. So, it’s best to ensure your product is not prohibited from the outset.
2. Create a Seller Account:-
Decide what you are going to sell and select which plan suits your needs. Do you need an Individual plan or is a Professional plan better suited to your needs?
The Professional plan provides access to additional Amazon listing categories which may prove beneficial, particularly if you operate in a niche domain.
READ – Difference between fulfillment center and warehouse
3. Inventory Requirements:-
Amazon’s FBAs inventory requirements are an important consideration for your prospective business. There are requirements related to packaging, preparation, labeling, etc.
For example, all products will require a barcode, and that barcode must be visible on the product to allow FBA systems to easily handle and ship the product.
Correct and safe packaging is also essential. No loose items and using six-sided stiff cardboard boxes are some of the requirements.
Benefits of Amazon FBA:-
There are many benefits to businesses who utilize FBA services, including:
1. Ability to offer fast services:-
Take advantage of Amazon’s efficient ordering system. Orders can be handled and shipped much faster than single individual businesses in most cases.
2. Provide Free Delivery
If your customers are members of Amazon Prime, they can take advantage of free delivery. This can be a potential marketing tool in comparison to your competitors who do not use an FBA.
3. Trade-off Amazon’s reputation
Amazon is a global, trusted brand. Many customers will feel comfortable that orders will be professionally handled through all stages, including possible product returns.
READ ALSO – e-commerce integration services
Conclusion:-
Provided your business and product meet Amazon FBA’s requirements, you can take advantage of the enormous global capacity of the FBAs logistics network to boost your sales and improve your bottom line. Many businesses simply could not operate on the scale and cost parameters in competition with Amazon’s service. So, FBAs make sense, not just for your business, but also for your customers. If you require assistance to apply for FBA registration why not try our friendly FBA prep service. Our experts will guide you through the process to ensure you comply with the requirements and begin operating as soon as possible.