Amazon FBA (Fulfillment by Amazon) is a service offered by Amazon that enables sellers to store their products in Amazon’s fulfillment centers. Amazon then takes care of picking, packing, shipping, and handling customer service for these products. FBA sellers also benefit from Amazon’s Prime shipping program, which means their products are eligible for free two-day shipping for Prime members.
This service allows sellers to take advantage of Amazon’s logistics network and customer base without having to worry about the hassle of fulfillment and customer service. Additionally, FBA products are often given higher visibility on the Amazon marketplace, which can result in increased sales for sellers.
Amazon FBA fees are based on the size and weight of the product, as well as the amount of time it is stored in Amazon’s fulfillment centers. However, many sellers find that the cost is worth the convenience and increased sales that come with using the service.
There are several advantages of using Amazon FBA for sellers:
Overall, Amazon FBA provides sellers with a convenient and cost-effective way to outsource fulfillment, increase visibility, and tap into Amazon’s vast customer base.
While shipping directly to Amazon FBA warehouses can be a convenient and cost-effective way for sellers to manage their inventory, there are some potential downsides to this approach:
Shipping costs: Depending on the size and weight of the product, the cost of shipping inventory to Amazon FBA warehouses can be significant, especially for sellers who are shipping from outside of the country or who have very large and heavy packages. Typically, large oversize packages have very high fulfillment and storage fees in Amazon FBA. There are many non-FBA warehouses that specialize in shipping multichannel fulfillment for large oversize products.
Additional fees and costs: Amazon charges various fees for FBA services, including storage fees, fulfillment fees, and other fees associated with managing and processing inventory. These costs can add up quickly, especially for sellers who are managing large volumes of inventory.
Amazon’s storage costs are also significantly higher than most 3PLs or other storage facilities. During the holidays (from October to December), for example, it’s not uncommon for storage costs at Amazon to be well over 500% higher than other storage options.
Restricted access to inventory: When inventory is stored in Amazon FBA warehouses, sellers have limited access to it. This can make it difficult to make changes to product listings or packaging and may require additional coordination with Amazon’s logistics team.
Limited customization options: Because Amazon manages the fulfillment process for FBA inventory, there are limited options for customizing packaging or including promotional materials with orders.
While these downsides are not necessarily deal-breakers, sellers should carefully consider their options and weigh the pros and cons of shipping directly to Amazon FBA warehouses before making a decision.
The cost to ship products to Amazon FBA warehouses varies depending on several factors, including the weight and size of the product, the distance to the warehouse, the shipping carrier, and the shipping method.
Amazon offers several shipping options for FBA sellers, including:
In general, the cost of shipping to Amazon FBA can range from a few dollars to several hundred dollars, depending on the factors mentioned above. It’s recommended that sellers contact Easy China Warehouse to get an estimate on the shipment of your freight to FBA.
United States: Amazon’s first and largest market place. The marketplace has over 3 billion visitors per month and sells over 4 billion products a year.
Canada: The Canadian version of Amazon launched in 2002. Amazon Canada has a fraction of the buyers than the US but is known to add between 5-20% of North American revenue.
Amazon Mexico: Amazon Mexico launched in 2015. It is one of the fastest-growing markets for e-commerce in the world. Amazon competes with Mercado Libre in the country so it is wise to check both marketplaces before entering.
The biggest Amazon Marketplaces in Europe based on website visitors are Germany, UK, France and Italy. If you are looking to expand to Europe, we recommend you start with these countries. In the past several years Poland and Egypt have been added to the Amazon network.
Depending on your ambition and your success in the more traditional North American and European marketplaces, you can test these additional standalone marketplaces. Japan is stand out in these marketplaces with a large amount of monthly traffic and a comparatively wealthy population. These markets tend to be the hardest to ship products into FBA since they are less popular than all the other Amazon marketplaces.
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