The Advantages of Fulfillment by Amazon (FBA)


 

Fulfillment by Amazon is a program where third-party marketplace sellers can leverage on. Instead of shipping the product, sellers can tap into hundreds of Amazon’s fulfillment center for inventory storing, pick, pack and ship order; and guess what, Amazon will provide the customer service for those order as well.

So, now we know what Fulfillment by Amazon (FBA) is all about but is there any other advantages? We would like to share some of our experience in using Amazon FBA over the years.

The Advantages:

 

1. Product to Reach Customer soon

Since inventory are stored in Amazon warehouses across United States and the world, Amazon is able to fulfill an order and ship to the customer in the shortest time. Quick shipping makes for happy customers, and happy customers make for more sales for seller.

 

2. Higher Chances to win Buy Box and increase listing Ranking

From our experience, MooCommerce notice sellers that stock their goods in Amazon fulfillment warehouse have higher chances of winning the Buy Box compared to non FBA seller. We guess that just pure common sense as Amazon would give more weight to FBA seller as Amazon already have ready stock in their warehouse.

MooCommerce also notice this service increases listing ranking for white label brands by using FBA. Amazon knowing customer would definitely get good products and service and thus better visibility in search results and listing ranking.

 

3. Improve sales

With winning Buy Box and better listing ranking, sales are almost guaranteed to improve. If winning Buy Box and better listing ranking do not boast sales, Amazon’s Prime Members will definitely do the job. Amazon has millions of Prime Members who can take full advantage of free Two-Day shipping. Only FBA listings products qualify for Prime Shipping. Many sellers have reported higher, including double their original volume.


Prime members can enjoy Free Two-Day Shipping on eligible items to addresses in the contiguous U.S

 


Impact of using FBA on Sales. For this particular seller, it has grown 6 times of upon starting with FBA.

 

 

4. Lower cost of warehousing

Amazon has hundreds of warehouse all over the US and Europe so sellers don’t need to worry about whether they have space for storage. By utilizing Amazon fulfillment center, sellers are able to save on cost of renting, hiring warehouse workers to pick and pack and most importantly cost of shipping. Amazon is able to offer very competitive cost of shipping due to the sheer volume of their transaction.

Furthermore, FBA has a multi-channel fulfillment features which allow sellers to ship order from other selling channel. So, seller can use one solution for all their e-commerce needs.