Fulfillment by Amazon (FBA) is a package deal solution to sell products to Amazon customers. They offer affordable storage space to help business owners get their products onto the Amazon platform. Amazon manages all the orders from packing to shipping for the customers. Amazon also provides post-sales service for its vendors, including returns or refunds.
How does the FBA work?
- A Vendor adds all merchandise to Amazon’s catalog. They obtain the merchandise and transport it to Amazon’s warehouse.
- Vendors have to set up the shipping plan with Amazon’s partnered carriers so they can save on delivery costs. The items are then held in Amazon’s fulfillment facility until a buyer places an order. The storage cost is primarily determined by the product’s size and volume.
- Amazon takes care of receiving orders, repackaging them in Amazon’s brand packaging, and delivering goods to consumers. Vendors automatically receive the profit from sales biweekly
What FBA provides you?
- Keep merchandise from vendors in fulfillment centers
- 24/7 customer support service
- Shipment tracking service
- Returns and refunds processing
Costs associated with Amazon Fulfillment
Amazon is known for being the most accessible and affordable solution for businesses looking to handle all their shipment needs.
When evaluating the costs of using Amazon FBA, vendors should consider selecting the FBA service level and packaging type that suits their needs.
- Fulfillment Fees
This cost includes everything from picking up the items to sending them to clients, as well as customer assistance and returns, which may vary based on whether the product is ordinary or excessive.
- Inventory Storage Fees per Month
If a vendor chooses to keep their items in Amazon’s warehouses, storage costs apply. There are a few different factors that play into how much these will cost, one of which is the space occupied by the products. This is calculated per cubic foot. The cost also varies by the size of the products. Items stored at an Amazon fulfillment center for more than a year are subject to extra storage fees and monthly storage rates.
Items stored at an Amazon fulfillment center for more than a year are subject to storage fees, as well as any monthly storage rates.
Standard Size Products – It shouldn’t be more than 20 pounds in weight and its dimensions must not be more than 18 x 14 x 8 inches. Anything that exceeds these dimensions or weight is considered to be oversized.
- Additional Expenses to take into account
A vendor must consider the charges listed below, in addition to the above-listed expenditures.
- Selling Fees – These are the monthly fees a vendor pays Amazon for using its platform.
- International Shipping Fees- FBA also enables an option to ship the products to different countries assuming that this export option is accessible.
- Referral Fees – These are similar to the commissions a vendor pays Amazon for each purchase they sell on Amazon. An export charge may be applied depending on the channel through which a vendor sells their items.
- Stock Removal Fees – This fee is charged if a vendor asks Amazon to send their products back to them.
- Returns Processing Fees – Products that fall outside of the free return processing fee will incur a refund processing fee. Amazon may charge a refund processing fee on those returns.
Pros
- Lower vendor’s shipping expenses
- Using FBA, the product will appear higher in the search results
- Removes the need for a storehouse
- Sell globally
- Benefits vendor from increased productivity
Cons
- Amazon FBA is not free
- Product packaging is branded with the Amazon logo
- Because of its easy returns process, vendors could see an increase in returns
What does StaffCloud offer to its clients?
The whole FBA process is time-consuming, with inventory management tasks taking up a lot of people’s energy. Sellers have to focus on this task exclusively to avoid getting out of hand.
With StaffCloud.net, you can get management of your domestic & international e-commerce fulfillment operations and a reliable partner that will take care of the purchase order processing and make sure to keep the inventory up-to-date and accurate for you.
At Staffcloud.net, we specialize in delivering outstanding customer service, handling Amazon orders, checking shipments, and generating shipment labels quickly and precisely.
If you’d like to see StaffCloud.net in action which is helpful in Amazon FBA services, have a look at our services.