Last updated on March 19th, 2023
Written by Ken Zhou
Order fulfillment requires businesses to accomplish different duties and responsibilities. Businesses need to:
If you are performing all these duties personally, it is called Fulfillment By Merchant (FBM). And it’s manageable provided you have a low volume of orders or cater to a limited audience. But, if you’re expanding and getting more orders, the process can be tedious without effective management and a dedicated team.
FBM is different from FBA because, with FBA, you’re outsourcing the order fulfillment duties to Amazon. Fulfillment by Amazon (FBA) refers to Amazon’s Order Fulfillment Services that include packing, labeling, shipping, and addressing customer concerns. And one of the features of FBA is that they do order fulfillments for products outside Amazon.
Fulfillment by Amazon is packed with features and is a constantly evolving program. Amazon has invested heavily in infrastructure, technology, and shipping partners; all to continually improve order fulfillment and customer service.
If you choose to become an FBA seller, you’ll get access to the extensive list of features and services they can provide. Just take note of the charges like storage fees, shipping fees, fulfillment fees, etcetera in your Shipping Plan. Choose one or all according to your budget and need.
Take note that all services have corresponding fees. Check with Amazon Marketplace and Amazon Seller Central regularly to see an updated list of charges per service. It’s best to work with Amazon Account Managers who know the ins and outs of selling with FBA.
Setting up an FBA is easy. If you're new to the Amazon Store, just create an account. If you're already an Amazon Seller you can shift your regular inventory to an FBA inventory.
Simply follow these steps:
Technically, Amazon manages your orders for you. Your items are already in the capable hands of the Amazon Fulfillment Center or Centers assigned to you. But you can still view the statuses of those orders. When using FBA, you can view the orders’ status on the “Manage Orders” page. The order status can either be “Pending” or “Payment Complete”.
While orders for Multi-channel Fulfillment are classified as “Non-Amazon”. Multi-channel Fulfillment order status can be:
Many successful businesses work with an Amazon FBA Agency so that they could focus more on product and branding. And leave the order fulfillment to the experts.
Now you know what FBA is and how it works. Now, let’s see why FBA is good for your business.
As mentioned before, FBA means Amazon will handle your orders. This means your products are eligible for Prime Shipping, a two-day shipping program that gets the orders to Amazon Prime customers in approximately 48 hours. Remember that Amazon Prime members tend to buy more than standard Amazon users.
If you’re a wholesaler, you can take advantage of a wholesale partnership with Amazon that also uses the FBA system. Using FBA also gives you more chances to win the “Buy Now” button on your product listings. Since it’s the preferred shipping method of many customers. Lastly, you can’t beat the 24/7 Customer Service and Free Returns offered by FBA. Returns and refunds take time and finances. And yet, they are necessary for building customer loyalty and trust.
With so many benefits of having an FBA account, it’s easy to see why Amazon keeps leveraging technology to make order fulfillment better.
Online selling just got a whole lot easier with Amazon FBA services. You can outsource order fulfillment responsibilities to an Amazon Fulfillment Center. And concentrate on other areas of your business. Amazon FBA receives, packs, and ships your products globally with efficiency and at a reasonable fulfillment fee. They are also able to deliver Customer Service and Free Returns.
So what are you waiting for? Create an FBA shipping plan with Seller Interactive today! Then, book a free call with us through this number (1-800-820-3746) and fulfill your dreams of a well-managed business.
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