Amazon, Amazon Fulfillment, B2C Fulfillment, eCommerce, eCommerce Fulfillment, Food & Beverage, Food Grade, Fulfillment, Key Performing Indicators, Warehousing, WMS
Raise your hand if you have an Amazon Prime account? Oh wow, 150 million hands raised? In the 25 years since Amazon was launched, it has become a household name, and is the biggest eCommerce site in the world. Having your products sold on Amazon immensely increases your audience. Amazon allows sellers to fulfill orders themselves or let Amazon handle fulfillment. Let’s dive into your options as an Amazon seller.
Lot’s of Acronyms to Digest When Talking Amazon Shipping; Let’s Break it Down:
Fulfilled by Amazon (FBA)
Self-fulfilled order processing route, like Fulfilled by Merchant (FBM)
Seller Fulfilled Prime (SFP)
What is Fulfilled by Amazon (FBA)?
FBA means Fulfilled by Amazon, you sell it and Amazon ships it.
The seller sends bulk products in Amazon’s fulfillment centers for Amazon to pick, pack, and ship products once sold.
What is Amazon Fulfilled by Merchant (FBM)?
Amazon Fulfilled by Merchant is a fulfillment method in which an Amazon seller is responsible for fulfilling its products purchased on Amazon.
FBM can be managed through a seller directly or by partnering with a third-party logistics (3PL) provider.
FBM can be more cost-effective if you can ship orders for a more sensible price compared to what FBA will charge by using your delivery partners and network, or your 3PL’s network.
FBM is a great Amazon seller shipping option it allows you the freedom to run your business as you like in terms of scalability, fulfillment methods, and inventory level control.
What is Seller Fulfilled Prime (SFP)?
Similar to FBM, you store, pick, pack, and ship your products to the customers yourself and handle all communications with the customer.
However, this shipping option also allows you access to prime customers, competing with businesses that pay the enormous fees for FBA.
SFP is ideal for sellers who have warehouse space and staff that can handle the order fulfillment or companies with a 3PL that can offer scalability and flexibility. To be successful as an SFP seller, you need to make sure that it would be more profitable for you than FBA or FBM.
Becoming an SFP seller streamlines your fulfillment process as you only need to manage inventory in your warehouses, instead of managing that inventory as well as additional inventory in Amazon’s warehouses.
Partnering With A 3PL | Amazon Fulfillment
Have experience with the program. Dealing with SFP requirements can be difficult.
Your 3PL should have advanced software that integrates directly with Amazon and gives you real-time visibility into order status and metrics.
You need a 3PL who is focused on customer service. Putting your SFP reputation into someone else’s hands is a leap of faith. Make sure you pick a partner who’s on your side, 100%.
Amazon Solutions Experts
Our team knows that all of the Amazon seller shipping options can be complicated and overwhelming. It can be challenging to decide which option is best for your business, especially when one option doesn’t fit all. It depends on the product you are selling, fulfillment capabilities, profit margins, and more. Our team knows how to meet Amazon’s stringent requirements for whichever option you choose. We have the solutions to help you scale your business, and we have the technology to execute the specifications for any Amazon shipment.
Talk With Taylor
Remember, the holiday season is around the corner. If you don’t have your fulfillment partner in place soon, you could be left out in the cold. Contact us today, and leave Black Friday and Cyber Monday to us. Fill out the form below and we will be in touch ASAP!