Amazon FBA (Fulfillment by Amazon) is a service offered by Amazon that allows businesses to store their products in Amazon’s fulfillment centers, and the e-commerce giant will pick, pack, and ship those products to the customer on the business’s behalf.
Amazon FBA Benefits
FBA can be an excellent option for businesses of all sizes, but it’s especially beneficial for small businesses and startups that may not have the resources or manpower to fulfill orders on their own.Here are some of the key benefits of Amazon FBA:
1. Increased Visibility and Sales
When you list your products for sale on Amazon, you automatically get exposure to Amazon’s huge customer base. And when you fulfill your orders through Amazon FBA, your products are eligible for Prime shipping, which can further increase your sales.
2. Reduced Shipping Costs
Amazon FBA can help you save on shipping costs by taking advantage of Amazon’s economies of scale. Amazon ships many products, so they can get volume discounts from UPS, FedEx, and other shipping carriers. They pass those savings on to you, so you can ship your products for less.
3. Fast and Reliable Shipping
When you fulfill your orders through Amazon FBA, you can take advantage of Amazon’s world-class fulfillment network. Amazon has fulfillment centers in multiple locations around the world, so they can ship your products quickly and reliably, no matter where your customers are located.
4. Hands-Off Order Fulfillment
Fulfilling orders can be time-consuming and tedious, especially if you’re fulfilling a large number of orders. With Amazon FBA, you can outsource your order fulfillment to Amazon, so you can focus on other aspects of your business.
5. Access to Amazon’s Returns Management System
Returns can be a headache for online sellers, but Amazon FBA can help make returns easier. With Amazon’s Returns Management System, you can process returns quickly and easily, without having to deal with the hassle of shipping products back to your warehouse.
6. Increased Customer Satisfaction
Amazon is known for its stellar customer service. And, when you fulfill your orders through Amazon FBA, your customers benefit from that same level of service. In other words, using Amazon FBA can help you increase customer satisfaction and build customer loyalty.
7. Increased Chance of Scalability
With Amazon FBA, online sellers can easily scale their businesses as demand increases. Amazon’s fulfillment centers and warehouses can store large amounts of inventory, meaning sellers can increase their product offerings without increasing their storage space. This makes it easier for sellers to increase their sales and grow their businesses quickly.
Understanding 3PL Logistics
3PL outsourcing includes Amazon fulfillment in addition to inventory management and warehousing. 3PLs provide support to eCommerce enterprises by automating retail order fulfillment.Amazon merchants are familiar with Fulfillment by Amazon (FBA).
Amazon is the world's largest 3PL company that uses Amazon's infrastructure to fulfill eCommerce orders for other businesses.This involves shipping your products to Amazon Warehouse through the FBA program, and Amazon can deal with and handle everything else. However, as appealing as this service is, FBA selling is not the all-encompassing logistical solution you thought it was.
The Appeal of 3PL Logistics
Right now, we want to convince you to use a 3PL instead of shipping directly to Amazon FBA facilities. This is because its features are more appealing in a variety of ways, such as:
1. The Comparable Charges
Amazon's fulfillment costs are continuing to grow. Amazon FBA fees increased by 20% in 18 months in 2021. Independent Amazon 3PL transportation providers could mitigate this by not charging peak fees and maintaining consistent total storage prices. Many 3PL warehouse providers, such as Eva, have in-house fulfillment infrastructures and are eager to assist with the shipment.Unlike Amazon FBA, your 3PL is likely to be invested in your company's success. For this, you are encouraged to be a collaborator, not just a job order.
2. The Inventory Management
Astute sellers adapt to changing shopping habits in order to remain competitive.Some FBA sellers must transport a considerable number of items to an Amazon fulfillment center. Giving up bodily control of their wares causes them to slow down and perform poorly.Access to your inventory gives you a lot of options, especially during busy buying seasons. Consider whether these changes can be done in-house or through a 3PL logistics partner.
Participating in Seller Fulfilled Prime (SFP) is another way to keep inventories under control and sell to Prime members.These Amazon merchants employ a third-party fulfillment provider. This gives the merchant complete control over the supply chain. It handles prices and delivery times more effectively, resulting in satisfied customers.
3. The Customization
Amazon, as the world's largest logistics company, processes a multitude of daily orders. This is one of their weaknesses.Amazon's logistics must be efficient in order for it to manage this volume efficiently. Unless you pay a premium, all items are packaged, wrapped, and dispatched in the same manner.If you want to stand out, replace "Amazon" with your company's name. Branded packaging, gifting, and other changes to your fulfillment process may help you stand out.The bulk of white-labeled logistics solutions provided by 3PL providers allows you to tailor your order. These conditions should be met by your 3PL. This includes the branding of your company on the box, packaging material, personalized inserts, and so on.
4. The Improved Service
As a retailer, you want to resolve your problem quickly with someone who doesn't know your firm, its history, or your expectations. For this reason, consider a 3PL with a customer-centric strategy. Typical third-party logistics companies have skilled customer service personnel on the distribution floor. Because of your solid working relationship, your customer service agent will most likely become your advocate in the 3PL's distribution facility.
Amazon FBA offers a variety of benefits for online sellers. It provides a convenient and efficient way to store inventory, ship products, and manage customer service. Moreover, it allows sellers to focus on growing their business as Amazon takes care of the entire fulfillment process. Lastly, it helps sellers increase their sales by leveraging Amazon’s massive reach and customer base. All in all, Amazon FBA is an effective and cost-efficient way for online sellers to streamline their business operations and increase their sales. All Points is the perfect solution for businesses that need a reliable partner to help manage their order fulfillment needs. With a team of experienced professionals, All Points provides a full range of services, from Amazon FBA prep services to pick and pack fulfillment. Contact us today to learn more about how we can help you streamline your processes!