What is Amazon FBA?
If you don’t know what Amazon FBA is, then allow me to explain. Amazon FBA stands for “Firewall-Backed Resell Rights Auction” and is one of the newest ways that merchants can sell digital products using the Amazon marketplace.
Amazon’s storefront is called the Amazon Web Platform, or Amazon Web Retail. The Amazon Web Platform stores, markets, and displays digital products, such as ebooks, physical items, music, video, and software. Any person with an Internet connection can list any digital item on the marketplace through this online store listing. Once an item is listed on Amazon, other customers can search through the marketplace to find similar items or browse specific products. On the flip side, when a customer searches through the marketplace, other merchants may be able to request a store listing.
For instance, let’s say that Tom wants to purchase a book on weight loss. He finds an Amazon store listing for a weight-loss book and purchases it. When he gets home, he does not have a way to return the product to Amazon. Instead, he contacts the customer service department at Amazon and they give him a link to a freight forwarding company that will ship the book back to Amazon.
This is all well and good, except what if Tom cannot locate any sort of stock availability once he requests the store listing optimization? What then? Well, since he is an online retailer, he really should not need to worry about this. All he has to do is contact fulfillment services and they can find a suitable warehouse for the product and then ship the order.
This is where the real magic happens. Instead of hiring and supervising a team of full-time fulfillment centers, online retailers can simply outsource the work to a third-party fulfillment center. These third-party fulfillment centers not only have the capacity to fill orders, but are also capable of offering customer service twenty-four hours a day, seven days a week. In addition, because they have no inventory to maintain, they do not incur extra labor expenses on things such as rent and utilities. In essence, they turn what would have been an Amazon FBA into their own profitable venture.
However, not everyone can turn Amazon into their fulfillment center of choice. There are several factors to consider before hiring a fulfillment company. Many entrepreneurs do not take the time to perform due diligence on the companies that they select. Unfortunately, many new business owners do not even take the time to verify that the company has a reputable track record and therefore get caught up in a scam.
One key point to consider when outsourcing fulfillment is Amazon’s 2-day shipping initiative. As you may know, Amazon will ship by 2-day if a customer makes a purchase within the United States on or after the second day of being picked. By choosing a fulfillment company that offers this type of delivery, you will reduce the amount of time your customers spend trying to place an order. When an online retailer only has to concern themselves with fulfilling orders during business hours, they can more time to focus on developing their product and increasing customer satisfaction. It is important to note that not all fulfillment companies offer this option, so it is critical to verify that your selected provider offers this benefit.
When an online merchant does not have much inventory to maintain, or when they need to scale up their production quickly, shipping by 2-day shipping can be an absolute lifesaver. By hiring a fulfillment company that offers this option, you can eliminate the need to outsource warehouse space for items that are not in demand. You can also avoid the cost of storing excess inventory at your facility, allowing you to free up your warehouse for other items. Fulfillment services that offer this option are very reliable and ensure that your customers receive their orders on time, which will increase sales. If you are considering hiring a fulfillment company to help you with your inventory management, make sure that they offer this expedited delivery service and the best prices. Check out John Crestani Super Affiliate System Review (scam or legit?)
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