Fulfillment By Amazon Review
1) Amazon’s FBA Customers include merchants whose merchandise are ordered on amazon and both Amazon’s and Merchants’ end customers.
These two customer groups benefit from the efficiency of Fulfillment By Amazon – the end customers regardless of whether they are those of Amazon’s or Merchants’, get their goods delivered from the same FBA. Also end customers have more product choices from Amazon and Merchants.
On the other hand, Merchants must choose shipping and handling process/system that is efficient and insures that their goods are delivered to end customers as promised. They do this in order to reduce shipping and handling costs while meeting their end customers’ satisfaction.
2) Fulfillment By Amazon Process Steps:
Merchants send their inventories to Amazon storage centers, where they along with Amazon’s goods are cataloged and stored. Sellers are also provided an online access where they can access and manage their inventories.
In the second stage, after the inventories are sorted, they are automatically sent to ready-to-ship or order fulfillment center.
Finally Products are made available for purchase online. Goods are picked and packed then shipped to end customers using the courier service of their choice.
3) FBA is a hybrid process, since goods are stored in order fulfillment centers and other storage facilities in anticipation of future demands and end customers make discount choice of free super-saver shipping or prime membership’s free two day shipping on orders.
4) End customers benefit from FBA goods that may be eligible for free Super-Saver shipping, free two-day shipping for Amazon Prime members and other discounts. End customers can also use the gift wrap provided by FBA to deliver goods as gifts to their loved ones.
Merchants using Fulfillment By Amazon will not have the need for extra warehouse space to store their goods. Also returns are handled by Amazon and customer service and support are provided by Amazon, hence relieving Merchants of that responsibility and allowing them to focus on sourcing and other Merchants’ activities.
Because all packages shipped from Amazon have the “fulfilled by Amazon” tag on them, Merchants also enjoy Amazon’s brand loyalty – that is the trust customers have in Amazon.
Fulfillment By Amazon is unquestionably one of Amazon’s most salient competitive advantages – competing especially on differentiation. With carefully streamlined processes that insure deliveries on schedule, FBA will remain a key strategic advantage for Amazon in the long run.
The system is so efficient that the Throughput Time that orders are ready for shipment from when they arrived at the fulfillment center is only one hour.
Another potential benefit of Fulfillment By Amazon is the attraction of more loyal customers – both end customers and Merchants.
Many people would like to buy online, but delivery time is one of their concerns. With proven and tested FBA, more end customers would certainly be attracted to buy online from Amazon.
In order to save the cost of storage and logistic problems associated with holding inventories, Merchants want to employ the services of a reliable and affordable order fulfillment company to deliver their products to end customers. With FBA’s tested efficiency, more Merchants would like to go with Amazon.