What are the benefits of FBA?
Fulfillment by Amazon (FBA) enables third-party merchants to house products in, and ship from, Amazon warehouses. Once products arrive at a given location, Amazon takes care of shipping and handling. FBA also includes climate-controlled warehouses, fast delivery services, and Amazon’s customer service. It’s a comprehensive service that benefits Amazon, third-party shippers, and customers.
Is FBA right for me?
Although FBA is an appealing resource for many businesses, it’s not right for everyone. Use these tips to determine if FBA is right for you:
What's your budget?
The only thing that could make FBA more appealing for emerging e-commerce businesses would be if it were free. Unfortunately, it’s not. Check out Amazon’s fees and rate structure to determine whether these fulfillment and monthly storage costs are too high for your profit margins. Because FBA prices are based on the size and weight of items, small and light products are ideal. Amazon’s FBA Rate Calculator makes it easy to assess items.
What type of product are you selling?
If the same product (or one of similar quality) is offered from other vendors at competitive prices and delivery times, you’ll probably want to use FBA. This will help you in offering a competitive price and great customer experience.
Where are your customers?
FBA services available in Amazon’s marketplaces make it easier for international sellers to offer customer service that compares with local competitors. Aside from offering fast delivery times, this access to Amazon Global Selling (AGS) also means that FBA merchants can provide local-language customer support and returns through Amazon.
Where are you located?
In order to utilize FBA, sellers must be residents in one of these countries, have a valid phone number, and have an internationally chargeable credit card.
Can I ship to multiple FBA warehouses?
FBA merchants can split up their inventory or send it as a single, larger shipment. Depending on where you’re located and the products you’re sending, your shipment may be divided across multiple fulfillment centers. To do this, Amazon may route your products through a receive center, which reships them to fulfillment centers in its network. This makes it easier for Amazon to guarantee fast delivery times for customers. Amazon’s Inventory Placement Service is perfect for merchants who want to save money by sending all inventory to a single location. Amazon splits up shipments and sends inventory to fulfillment centers of its choosing. A per-item fee applies.
Ready to jump in? Check out Flexport’s guides to shipping to Amazon FBA.