If you’re a new seller looking to start selling on Amazon, you’ve probably come across the term ‘Amazon FBA.’ FBA stands for Fulfilment by Amazon, which means that Amazon takes care of storing, picking, packing, and dispatching your orders. They even handle customer service for orders fulfilled by Amazon.
When you use FBA to fulfil your orders, you’ll need to send your products to one of Amazon’s many fulfilment centers located across the country and around the world.
In this blog, we’ll explain what an Amazon fulfilment center is and how it can benefit your Amazon business.
What is an Amazon fulfilment center?
An Amazon fulfilment center is like a giant storage place where Amazon gets, keeps, chooses, wraps, and sends things that customers buy. Amazon has more than 175 of these big storage places all around the world, and they use really fancy technology to do the work fast and well.
These storage places are super important for how Amazon gets things to people. Because there are many of them in the United States and different countries, Amazon can bring customers’ things in just two days, and sometimes even on the same day.
How does an Amazon fulfilment center work?
Amazon’s fulfilment services may seem complex, but let’s break down how it works for Amazon sellers using FBA (Fulfilment by Amazon).
Receiving and Storing Inventory: Products come in from different suppliers and sellers to Amazon’s fulfilment centers. When they arrive, the inventory gets checked, counted, and organized. Then, it’s placed in specific spots in the warehouse. These spots are chosen to make it easy to find the products when they’re needed, considering things like size and popularity.
Inventory Management: Amazon uses fancy tech and software to keep tabs on inventory levels, where items are, and other important info. This way, they always know what they have in stock and where it’s located.
Picking: When someone orders something, the picking process starts. Amazon uses a mix of people and robots to get orders ready. Workers get directions on handheld gadgets or wearable tech. They go find the stuff in the warehouse, pick it, and move it along.
Packing: After items are picked, they head to the packing area. Here, they’re wrapped up carefully, depending on how big or delicate they are. Amazon’s packing process is smart; it keeps things safe during shipping while not using too much extra packing stuff.
Shipping: Once packed, orders are labeled and grouped based on where they’re going and how they’ll be delivered. Amazon partners up with different shipping companies to make sure everything gets to customers quickly and reliably.
Returns Processing: Sometimes, items get sent back. Fulfilment centers deal with that too. They check returned items, decide if they’re good to go back on the shelf, or if they need to be disposed of or sold off.
Technology and Automation: Amazon loves using robots and high-tech stuff to make things work even better. Robots help move products around, organize the warehouse, and sometimes even help with packing.
Amazon’s fulfilment centers are super important. They help Amazon handle orders fast and make sure customers get their stuff on time. Plus, they use some pretty cool technology to make it all happen smoothly.
Benefits of using Amazon fulfilment centers
Using Amazon FBA (Fulfilment by Amazon) offers sellers several key advantages. One of the biggest perks is that sellers don’t have to worry about handling their own order fulfilment. When you send your products to an Amazon fulfilment center, Amazon takes care of the entire process. This frees you up to focus on marketing and selling your products while continually restocking Amazon.
Here are some additional benefits of using Amazon FBA:
Prime Eligibility: Your products become eligible for Amazon Prime’s fast and free shipping, which can significantly boost their visibility and sales. Prime members often prefer products with Prime shipping.
Fulfilment Expertise: Amazon is renowned for its efficient fulfilment services. By using FBA, sellers can tap into Amazon’s expertise in inventory management, packing, and shipping. This results in better customer satisfaction and fewer logistical challenges.
Customer Trust: When customers see that Amazon is handling the fulfilment of your products, it can enhance their trust in your brand. This can lead to higher conversion rates and repeat business.
Customer Service: Amazon takes care of customer service inquiries related to shipping and returns for FBA orders. This reduces the workload on sellers’ customer support teams and ensures consistent and professional customer service experiences.
Scalability: FBA allows sellers to scale their business without worrying about the logistics of storing, packing, and shipping products. As your sales volume increases, Amazon seamlessly handles the increased workload.
Storage Space Management: Amazon FBA optimizes storage space by adjusting the amount of space your inventory requires. During peak seasons, you can use more space, and during slower periods, you can reduce storage costs.
Multichannel Fulfilment: Amazon FBA can also fulfill orders from other sales channels, such as your own website or platforms like Shopify. This provides the flexibility to centralize your inventory management and fulfilment processes.
Amazon fulfilment center fees
Certainly, Amazon’s fulfilment center fees can seem complicated, but they consist of various charges based on your specific fulfilment needs. Here are some common fees you might encounter when using Amazon’s fulfilment centers:
Storage Fees: These fees depend on how much space your inventory takes up in Amazon’s warehouses. The rates can change seasonally, with higher costs during busy times.
Order Fulfilment Fees: Amazon charges a fee for each order they handle for you. This covers everything from picking and packing to shipping your products to customers.
Long-Term Storage Fees: If your products stay in Amazon’s warehouse for a while, you might incur long-term storage fees. These typically apply to items stored for six months or more.
Removal Fees: If you need to take your inventory out of Amazon’s fulfilment centers, there are fees for returning or disposing of your products.
Return Processing Fees: When a customer returns a product, Amazon might charge a return processing fee based on the item’s category and size.
Unplanned Service Fees: These fees come into play when your inventory isn’t prepared or labeled correctly, leading to extra handling by Amazon.
Storage and Removal Fees for Oversize Items: If your products are considered oversize, additional storage and removal fees may apply.
Subscription Fees: If you’re using Amazon’s subscription services like Subscribe & Save, there may be associated fees.
Multi-Channel Fulfilment Fees: If you use Amazon’s fulfilment services for orders from other sales channels, not just Amazon, you’ll encounter extra fees.
Fulfillment Fee Minimums: Amazon might set minimum fulfilment fees in some cases, ensuring a minimum payment per order.
It’s vital to regularly check Amazon’s official fee structure since it can change over time and vary depending on your region and product category. Understanding these fees is essential for effectively managing your costs and optimizing your Amazon business.
Use Amazon fulfilment centers to grow your business
Amazon’s fulfilment centers play a crucial role in making sure your packages arrive quickly and reliably, no matter where you are in the world. They use high-tech tools, smart methods, and a big team of workers to handle all the stuff they sell and get it to you on time.
In summary, Amazon Fulfilment Centres are the backbone of Amazon’s exceptional order fulfilment efficiency. By understanding their strategies and best practices, you can enhance your own e-commerce fulfilment process and provide your customers with swift and reliable service.
Ready to supercharge your e-commerce business? Explore Amazon fulfilment services or consider partnering with the Scoop Global fulfilment services to streamline your operations and delight your customers. Happy selling!