Individuals and companies that have opted to enter the world of eCommerce usually course their businesses through Amazon. Amazon is a well-known internet-based enterprise that acts as a middleman between businesses and customers all over the world. It is a way for businesses to sell their products online without the need for creating their own online stores. Customers do not often question how the products are shipped to them as long as they receive their orders in good condition. However, for businesses, they may need to know how shipping works with Amazon.
One of the important things businesses have to consider is how they will be able to safely send their products to Amazon fulfillment centers. Amazon does not actually have its own logistics service to pick up items from the Amazon sellers. It does give sellers the option to choose any of the shipping carriers Amazon has partnered with to handle the pickup of the items from the sellers. However, Amazon sellers still have the option to choose other carriers to handle the logistics and transport of their items to the fulfillment centers. The details listed below show some of the important things that sellers have to consider when shipping products to Amazon fulfillment centers:
When it comes to shipping with Amazon, sellers have to know when they would need to consider which fulfillment type to prepare for. They must always be prepared to use either of these since the decision on which to pick can be both controllable and uncontrollable for a seller. Below shows the common factors that would decide on the fulfillment type to use:
o One of the best ways for a company to freely sell products on Amazon and also handle all the shipping and deliveries is to gain an excellent reputation from its customers. Large enterprises are known for selling directly to their customers because they are able to assure their customers that the products will arrive in excellent condition. As a reputable company, you are given the freedom to choose which carrier you will be using to fulfill the orders.
o Companies that sell products on Amazon may also have their own online and offline stores. Including Amazon in their selling platforms is a smart business decision because it gives these companies more coverage all over the world. However, for these sellers, having the chance to sell on various platforms would mean that they must have their own ways to store their products before they are purchased by customers. Sellers may build or rent warehouses to store all of their products before they are shipped to their customers. With FBM, sellers can place more quantities in their storage, which would be more cost-effective than having to pay Amazon to store some of the items that will be shipped via FBA. It would also be easier to handle the inventory of the items that are being sold when they are stored in one location.
o Amazon sellers who wish to gain more profit are better off choosing only FBM on Amazon. Even though some customers may not like this, sellers have better control on their profits and expenses. FBA gives sellers additional fees that may significantly cut their profit margins. These fees may include the storage, handling, packaging, support, and delivery expenses that Amazon has to deal with to effectively complete the transactions. With FBM, these sellers are able to cut out these fees and may avail of any promos and discounts that their preferred shipping carriers offer them.
o For individuals and businesses that are still new, it may take some time for customers to be introduced to their products. Since these items need to be marketed, consigning them with Amazon will help introduce their products to customers who are picky with the shipping options available on Amazon. Amazon is known to pay its sellers that opted to go with FBA within 2-3 weeks. This means that the payment for all items sold within the period will be paid to the sellers.
o There are individuals and businesses that are not able to sell items in bulk. For these cases, these Amazon sellers cannot handle shipping fees that are meant for full truckload (FTL) shipping. By using less than truckload (LTL) shipping, these sellers are able to reduce their shipping expenses since they only pay for the amount of space their items take up in the trailers that are used to ship them to the Amazon fulfillment centers. Other than the shipping fees, these small-scale sellers may also find it costly to do the packaging and handling of all their products. With FBA, these sellers pass all the work to Amazon. Sellers will have fewer issues selling their items to customers on an international scale.
o This is one of the uncontrollable factors that may force Amazon sellers to include FBA as one of the options for their products. Unless your company is one of the globally recognized brands that customers can trust with direct shipping, there are still businesses that have yet to gain excellent reputations from their customers. Since FBA means that Amazon is accountable for the items being sold, customers feel more secure with this option.
o Storing and transporting products can cause them to get damaged along the way. With FBA, sellers do not have to worry about how the items will reach their customers. Since Amazon already does its due diligence to check the products that arrive in its fulfillment centers. After Amazon has deemed that the items from the seller have met all of its standards and requirements, it takes over the accountability and responsibility of the items when they are purchased by Amazon customers. Amazon sellers will just have to wait for the payment when customers buy the products from Amazon.
Selling on Amazon is profitable when done the right way. For those who need to consign with Amazon through FBA, you should ensure that your products pass the quality control measures that are employed by Amazon. One of the most important ways to do this is to ensure that the items do not arrive at the Amazon fulfillment centers with damages, wrong packaging, or missing pieces. You need to trust your products with shipping carriers that are familiar with the Amazon guidelines. Just like with RoadLINX, we can assure you that your items will arrive at the fulfillment centers safely. You may contact us at 905-760-1141.
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