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There are two ways to ship items to customers in the Amazon marketplace. These are known as Fulfillment By Amazon (FBA) and Fulfillment By Merchant (FBM).
Merchants can choose to ship the item is by one or both of these methods, and there are several reasons to choose between FBM or FBA.
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When the Seller decides to choose Fulfillment by Amazon (FBA), there are added benefits that the Seller is able to offer customers, increasing opportunities to sell products successfully through Amazon.
Customers buying products from Sellers using FBA are eligible for Super Saver Shipping and Amazon Prime, which offers the Seller competitive pricing on inventory.
This shipping method allows customers these benefits:
This method allows customers these benefits:
The seller must follow the requirements listed below for shipping specific items:
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If they qualify, sellers of Books, Music, Video, and DVD (BMVD) products are able to choose reduced shipment times for Standard and Expedited shipments. When selected, this will be available for Buyers to view during checkout and in the details of the Buyer’s order. The reduced shipping is as follows:
In able to qualify for reduced shipping times of BMVD products, sellers must meet the following requirements:
If the seller qualifies, the option to reduce shipping time will remain as an option for Buyers. However, if the seller’s tracking dips below 98 percent or the on-time delivery scores go under 97 percent, the option for reduced shipping time for the seller’s listings will automatically revert back to the Standard and Expedited shipping times.
To provide a high standard of customer service, the seller will confirm the shipment of units shipped immediately by:
With Fulfillment by Amazon, shipping rates depend on the selected shipping speed and size/weight of the items. Global shipping rates are a separate set of rates laid out by geographic region and countries approved by Amazon. There are specific guidelines for packaging Amazon products that sellers need to take into consideration as well.
With merchant-fulfilled Amazon shipping methods, typically, there are more cost benefits associated because they eliminate any FBA storage fees.
With Fulfillment by Merchant (including Seller Fulfilled Prime), there are definite benefits to hands-on fulfillment. You have more control over your inventory and can access your products whenever you want. You can own the fulfillment process from start to finish.
On the flip side, however, FBM involves more time, as it is the seller’s responsibility to store, pick, pack, and ship products. Sellers need to coordinate packing slips, shipping labels, and shipment confirmations.
All orders placed through Amazon are to be fulfilled in a timely manner, in accordance with the Order Timeline. That is, when a buyer makes a purchase, the FBM seller of that product bears the responsibility of making sure that the buyer receives the product within the time period specified.
Amazon requires sellers to confirm the shipment of orders within 30 days of the order being made, or the order is canceled automatically. Within that timeframe, however, sellers determine their requirements for handling time – how soon after the buyer’s purchase the order must be transferred to the delivery carrier.
1. Buyer places an order: A buyer adds a given seller’s product to the shopping cart and proceeds to checkout to complete the purchase. At this time, the terms of the sale are final, including the method of payment and shipping.
2. Amazon Payments begins processing order: The order is pending, and the seller can view the order’s status in the Manage Orders tab of the Seller Central page.
3. Order is held by Amazon Payments: This planned delay in processing allows buyers to cancel their orders if they were made by mistake or with incorrect information. A canceled order has the status “Canceled” on the Manage Orders tab of the Seller Central page.
4. Order is validated by Amazon Payments: Amazon evaluates the order details and payment information of the buyer.
Several outcomes of this evaluation are possible:
5. Seller processes and ships the order: The seller, unless using Fulfillment By Amazon (FBA), confirms the order in the Manage Orders tab of the Seller Central page and ships the order (unless using FBA) using the appropriate shipping carrier, who delivers the package to the buyer’s shipping address.
6. Buyer receives their order: When the buyer receives the order, they are encouraged to provide feedback about the seller’s customer service.