The Amazon fulfillment (FBA) business model is becoming increasingly popular all over the world, and with good reason. It works in the same way as a regular eCommerce store. Your products are correctly packaged and labeled for safe, secure shipping to the customers from an Amazon fulfillment center. Amazon FBA also takes care of returns, refunds, and customer service.
Fulfillment by Amazon (FBA) is a service that helps businesses grow by providing access to Amazon's logistics network. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, we handle receiving, packing, shipping, customer service, and returns for those orders. Effective, reliable ecommerce fulfillment delights customers.
You only have to focus on finding the product while the Amazon fulfillment business takes care of the rest.
Comparison between FBA and FBM
There are two different ways of selling products on amazon.
FBA (fulfillment by amazon)
Amazon is in full control of shipping and warehousing of the goods so what you do is when you have the products you want to sell on Amazon with FBA, you send your goods to an Amazon, then they disperse your goods throughout the country.
FBA is actually taking your goods, sending them to the Amazon FBA warehouse and they are doing all the storing, all the shipping to the customer, and taking care of that end for you.
FBM (fulfillment by merchant)
Merchant means us, who are selling the goods. when you are selling the product on amazon and someone goes to your product page and buys this good instead of amazon shipping your goods, you get all the shipping information to you and you are responsible to print the shipping label, get it on your package and go to the post office and sending out that package yourself so you control the shipping, the warehousing and all that.
The main difference is that if FBA amazon takes full control of the shipping process and they warehouse your goods, they ship everything and with FBM you’re actually in control of the shipping process, you are responsible to get that product to the customer after they order.
Benefits of having FBA (fulfillment by amazon)
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Way Less work
The first benefit is that it’s way less work to sell on Amazon FBA. Because they are doing everything for you. You don’t have to worry about sending the packages yourself and you get to go ahead and send your goods. In Amazon FBA, they worry about your picking, packing, storing your products, and then shipping to customers .you don’t have to worry about a single thing. This allows you to scale a lot quicker, to sell hundreds of products a day without adding more employees or more warehouses. Amazon does all the scaling for you all you have to do is market more get more products sent over to Amazon.
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Eligible for Prime shipping
The second benefit of having FBA services is that product will be eligible for amazon prime or 2 days shipping so, amazon will actually reward you if your product is in their warehouse because they have complete control of the shipping process and they can get your products to the customer in two days or even one day in the bigger cities and provide better customer experience.
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