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If you have been around the internet in the past 10 years, then you must have heard about the company Amazon. Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming and artificial intelligence. It was founded by Jeff Bezos in Bellevue, Washington, in July 1994. The company started as an online marketplace for books but later expanded on to sell electronics, software, video games, etc.
Being the biggest e-commerce website in the world right now, it provides different useful features for both the sellers and the consumers. One such service is FBA or Fulfillment By Amazon. When you’re shopping on Amazon, you might have seen the words “Fulfilled by Amazon” beside some products that you look for or buy.
What is the meaning of Fulfilled by Amazon?
FBA is a service by Amazon that allows the seller to reap the benefit of flexibility in their selling workflow. The services that are provided by Amazon include storage of products, products storing and product packaging, and delivering assistance, which takes off the burden of the following from the seller.
This program makes the availability of Amazon fulfillment center for stocking for the products/merchandise. At the fulfillment center, the products are stored and kept until they are processed, or all the units are sold. As the product is available already at the fulfillment center, placed ordered are then physically prepared, packaged, and shipped by Amazon.
The sellers send their listed products to the warehouse. After which Amazon handles the whole process in the name of the seller. From preparing to delivering and customer reviews all are provided by Amazon to the seller of the merchandise/ products.
Fulfillment by Amazon helps a seller increase their online sales by giving them access to Amazon’s free and fast processing and delivering mechanism. The sellers have to send their products to Amazon’s warehouse where they will then manage and process the order on the seller’s behalf and with that provide customer service. With the association of a products name with Amazon, an average seller has seen an increase of 86% of sale after being associated with FBA or Fulfillment by Amazon.
Standardization of Shipping
All orders that are placed within FBA are processed in the same way that Amazon handles its own products. This means that on order placement, all the picking, packing, and tracking of shipment is done by Amazon. The benefit of FBA for a seller is that they can easily list their products to the FBA and let Amazon take care of the processes after order placement.
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Amazon can ship and handle products/ inventory that are being sold on multiple channels, and not through just the Amazon marketplace.
Subsidized Shipping Fees for Seller
Amazon keeps a stable business with the companies that are shipping and delivering their products. The sellers under the FBA are able to save the shipping fee and thus pay less for shipping. The sellers can also sell their products with free shipping under FBA.
Having Amazon’s Name Associated with their products
This is a quality guarantee that most buyers will appreciate, making them more prone to patronize a seller because of it. It is the biggest plus for a seller as having its name associated with their products increases the basis of trust between their product and customers.
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Amazon being the biggest online marketplace in the world right now provides the sellers and customers with a variety of features and services, one of them being Fulfillment by Amazon. This service provides flexibility to the selling practice of sellers along with the association of Amazon’s name. This service allows the sellers to send their products to Amazon’s warehouse and then let Amazon handle their orders and pre-processing. This article thus provides information about FBA that is Fulfillment by Amazon and the benefits that are provided with the association of Amazon.