What is FBA (Fulfillment by Amazon)?
FBA is a program that allows businesses to outsource their order fulfillment to Amazon. Businesses transport their products to Amazon fulfillment centers, where we choose, pack, and ship orders when customers make purchases. We can process returns for those orders as well as offer customer service.
How FBA operates
As you scale your business, Fulfillment by Amazon can assist you to reduce fulfillment hassles.
Step 1: Setup FBA
To set up FBA, create an Amazon selling account and log in to Seller Central.
Step 2: Build product listings
Indicate FBA inventory after adding products to the Amazon catalog.
Step 3: Create products
Prepare the products per Amazon’s packing specifications, shipping criteria, and routing requirements for safe and secure delivery to a fulfillment center.
Step 4: Deliver goods to Amazon
Make a delivery plan, print labels with the Amazon shipment ID, and send packages to the Amazon fulfillment facilities. Customer purchases can be made once Amazon gets the goods at the fulfillment facility.
FBA fulfillment and storage costs
Fees for inventory storage
Charged for all items kept in an Amazon fulfillment center, based on your daily average inventory volume, expressed in cubic feet.
Costs for long-term storage
Assessed each month for all things that have been kept in a fulfillment facility for more than a year. You can keep your product in good condition and avoid paying long-term storage fees.
Your orders’ selection, packing, shipping, handling, customer support, and product returns are all charged per item.
Unexpected service charges
Incurred when goods are delivered to a fulfillment location without being properly prepared or labeled, necessitating unanticipated services.
Costs for order removal
For a price per item, you can pay Amazon to return or get rid of your inventory in a fulfillment center.
Benefits of FBA
Your goods are eligible for FREE Two-Day Shipping, FREE Shipping, and other Amazon Prime benefits.
Free Two-Day Shipping is a perk for Prime members, and all Amazon.com buyers can obtain free shipping on qualifying goods. Products that you list for FBA are also eligible for free shipping. Customers are informed that Amazon handles packing, delivery, customer care, and returns via the display of the Prime emblem on qualified FBA listings.
Customers receive guaranteed returns and customer service from Amazon.
FBA makes use of the global network of Amazon customer care representatives to handle customer inquiries, refunds, and returns for your FBA shipments.
- FBA customer service: Day or night, customers can get in touch with our customer service team by phone or email. You won’t be charged extra for this service; the only exception is some product categories’ return processing fees. Instead of managing customer support when you use FBA, your time may be spent expanding your business or going on vacation.
- FBA returns: Amazon will handle all customer service relating to the fulfillment of your FBA products for orders placed through the Amazon.com website that Amazon fulfills. Customers can find information about Amazon’s contact information and help pages in Amazon’s online returns center. Customers will be directed to Amazon’s handy online returns center if they wish to return a purchase.
It is cost-efficient
When compared to the slowest delivery alternatives provided by major U.S. airlines, FBA shipping costs 32% less per product. Comparing FBA’s two-day delivery to their two-day choices, the price per unit is 72% less. Pay as you go: You pay for the orders we fill as well as the storage space. Your payments include the cost of shipping; there is no additional charge for Amazon Prime FREE Two-Day Shipping and free shipping on qualifying goods. It’s possible to pay fees for optional services and selling on Amazon.