Business

What Is Fulfillment by Amazon and How Does It Work?

What Is Fulfillment by Amazon and How Does It Work?

Being a highly convenient platform, Amazon attracts millions of buyers and sellers from all over the world. Merchants have plenty of options for boosting sales in hassle-free ways. In particular, you need to consider opting for the fulfillment services provided by Amazon (Fulfillment by Amazon), which allows sellers to avoid managing many different tasks, such as delivery. Detailed info about this service is provided in this article, such as the benefits, Amazon removal fees, use of services, and more. Keep reading it to learn about Fulfillment by Amazon everything that you need to know. 

What Is Fulfillment by Amazon?

It is not just enough to publish the information about products on the Amazon platform to ensure the success of your business. It is essential to provide quick delivery, proper storage of goods, as well as hassle-free return procedures. 

If you do not want to bother with handling everything yourself, you can entrust this work to Amazon. This will save you lots of time and set you free from monitoring plenty of processes yourself. You will pay fees for these services, which are reasonable.

Fulfillment centers created by this company are available in various countries. Your products will be properly delivered. Also, the company will take care of customer support for those goods. With this service, you will be able to attract more customers and grow your business. In case a customer asks for a return, the company will take care of everything. All customers who opt for this program will get additional benefits, including free ad clicks. 

What Are the Extra Benefits of the Fulfillment by Amazon?

There are plenty of benefits you can enjoy by opting for the Fulfillment by Amazon program. They include the following:

  • Free ad clicks. All in all, you will get $200 for advertising purposes. Once you register for the program, you will get the first half of the money, and in a month, you will get the second half. This offer applies to all goods, including new ones.
  • Free delivery. Customers will get up to $100 for the delivery to an Amazon center. This offer does not apply to new goods.
  • Free removals/storage. You will be able to enjoy this service for a month. This offer applies to the goods of standard sizes or oversized ones.
  • Extra benefits for certain products. If you sell apparel and/or shoes, you can get free storage for a certain number of units for a month. Also, you will get free removals for a certain number of units for six months. 

As you can see, opting for this service allows you to save plenty of money. 

How Can This Service Help Your Business?

The Fulfillment by Amazon services have been launched to help your business grow. That is achieved in a variety of ways. Since you will not have to handle many tasks yourself, you will be able to spend time and effort on doing other things important for your business success. 

You will pay only reasonable fees for such services. Compared to regular shipping and storage rates, the conditions offered by Amazon are much more beneficial. 

Returning customers can enjoy attractive discounts on eligible goods. That is another great option to save money. The program allows benefiting from fast delivery in various European countries. This is how you can attract more customers among the ones living in those locations. In fact, with this service, merchants can sell their goods in over 100 countries without having to worry about the difficulties of the selling processes. It is possible to sell products manufactured by you or other companies. 

How to Use the Fulfillment by Amazon?

What will you need to do if you decide to opt for the fulfillment services offered by this platform? There are a few steps that you will take for this purpose:

Step 1: Choose the fulfillment service by Amazon 

First of all, you need to create your Amazon account if you do not have one. Simply click on the large orange Sign Up button located in the top right corner and fill out the registration form. When you will need to access your account, navigate to the proper section to set up this service.

Step 2 — Add products to the relevant list 

Now, you will need to make a listing that includes the products you wish to ship with the help of Amazon. When the product catalog has been created, you can specify the inventory for the delivery services provided by the company. In particular, you will need to specify that delivery services will be provided by Amazon, not the merchant. 

It is possible to add products in the following two ways:

  • Add each product separately
  • Add multiple products at once

Step 3: Prepare your goods for delivery

You will need to prepare your goods for the delivery to the center of the company. Amazon provides all the needed guidelines and requirements. You should read them carefully before you start packing your products. 

Step 4: Deliver your products to the closest Amazon center

Now, you need to take care of the delivery of the products. You will need to prepare a shipping plan, in which you will indicate the characteristics of products. All goods must be properly labeled. The detailed instructions on this process are provided on the Amazon platform. After everything has been done, you can relax since Amazon will take care of everything else. 

What Are the Fees for the Fulfillment by Amazon?

Fees for this service depend on the dimension and weight of the products. Generally, they range from $1.97 for the small and light packages to $137.32 for special oversized packages. The storage fees range from $0.48 to $1.20 cf³. 

The fees associated with processing the returns of goods based on this program are applied to products that come with a free return delivery. They are charged per item. The categories for which fees are charged include Watches, Jewelry, Shoes, and others. For instance, a return fee for a large T-shirt is $3.81. Detailed info about fees can be found on the official website of Amazon. 

About the author

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Steven Ly

Steven Ly is the Startup Program and Events Manager at TheNextHint Inc. She recruits rockstar startups for all TC events including Disrupt, meetups, Sessions, and more both domestically and internationally. Previously, she helped produce Dreamforce with Salesforce and Next '17 with Google. Prior to that, she was on the advertising teams at both Facebook and AdRoll, helping support advertisers in North America and helped grow those brands globally. Outside of work, Priya enjoys Flywheel, tacos, the 49ers, and adventuring around the globe.

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