Fulfilled by Amazon is a fulfillment service that allows for your orders to be processed and shipped directly from Amazon’s warehouses. It means that even if something is sold by a third-party seller, it will be stored, picked, wrapped, packaged and shipped by Amazon. With Fulfillment by Amazon, even customer service and returns are handled by Amazon to leave the third-party shipper available for bigger and better things!
Sellers pay for the Fulfilled by Amazon service. Fees for Fulfillment by Amazon can range from approximately $0.45 to $1.35 per unit (more for oversized items) or a flat fee of $39.99 per month if the third-party seller has a “Professional Account” set up at Amazon. There are also fees for storage, which vary depending on how much you use and the season. For example, storage fees increase from October through December due to increased Amazon sales during the holidays.
How Fulfilled by Amazon works…
When a customer places an order, Fulfillment by Amazon will pick, package and ship the order for you. Then, the customer will receive tracking information from Amazon and their order within two days with Amazon Prime shipping. As Amazon says, “You sell it, they ship it!”
Amazon also offers its own support for Fulfillment by Amazon sellers at varying fees, including:
Sellics – which is a suite of selling tools providing analytics, profit tracking, keyword rankings and help managing pay per click programs
InventoryLab – which allows Fulfilled by Amazon sellers to conduct keyword, product competition and listing research in an a la carte manner
Jungle Scout – web-based software that allows users to “scout” new items, track products and gain access to helpful sales data estimates
Profitability will depend on the product you are selling. You will need to “do the math” as they say to see if Fulfilled by Amazon is right for you; but if you determine that Fulfilled by Amazon does allow you to remain competitive, it sure does offer a whole lot of benefit.
The best perks of using Fulfilled by Amazon are not having to worry about storing inventory, picking orders, sending them to customers or having to provide any customer interaction for customer service or product returns…AND gaining an edge over products that are not Fulfilled by Amazon. Fulfilled by Amazon products appear higher on the list when customers conduct their Amazon product searches. Research indicates that this alone leads to better ranking and sales.
As you can see, Fulfilled by Amazon is not just about fulfillment and time management, it’s about utilizing Amazon the best way possible to boost sales.