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- What Is Fulfillment By Amazon (FBA)?
Fulfillment By Amazon (FBA) If you enroll in the FBA program, you can automate your order fulfillment. Your inventory is se nt to Amazon so every time you make a sale Amazon handles the fulfillment. Your products are stored in Amazon warehouses and Amazon takes care of customer regulations and shipping practices. If anything happens to go wrong with your orders or deliveries, Amazon takes care of everything including returns. An FBA business model can be particularly helpful for sellers hoping to rapidly grow a scaling Amazon business and reach more customers. Fees Amazon charges storage fees and fulfillment fees. These fees include Amazon’s 24/7 customer support and tracking information. FBA gives you more time to focus on growing your business and a higher chance of winning the Buy Box. Enrolling into FBA makes you eligible for Amazon Prime free shipping, therefore, making your items more appealing to a large audience. Amazon has millions of active customers and Prime subscribers. Brands specifically available to Prime buyers are those that utilize FBA. These brands have an increased opportunity to gain more sales through Amazon FBA because they are more visible to Prime buyers. Advantages of FBA Fast Delivery Effortless logistics and shipping Discounted Shipping Rates Management and Ease of Returns Customer Service Management Storage Space
- What Is Fulfillment By Merchant (FBM)?
Fulfillment By Merchant (FBM) FBM allows merchants to be in control of their inventory storage, packaging, and shipping. Merchants can expect fewer fees paid to Amazon and higher margins as well as the elimination of delayed payments, fees to Amazon for handling your assortment or shipment costs to get products to fulfillment centers. With FBM you are in control of the selling process which allows you to establish your brand from the ground up. Shipping via FBM allows you to ensure the quality of each item at the time it is shipped to customers resulting in less negative feedback. You can also provide personalized packaging for your customers compared to regular Amazon packaging. When selling through FBM, your inventory does not need to be paid for all at once and shipped to Amazon warehouses, so it is easier to get started selling faster. Amazon has strict requirements for accepting products into their warehouses and it can take time to ship your entire assortment to them. Using FBM You will have to battle for the Buy Box. Sellers that control the Buy Box will have their product added to the customer’s cart and get the sale. Without control of the Buy Box customers will have to scroll down the page to find the small section and link under “Other Sellers on Amazon”. Not having the Buy Box can make it difficult to gain sales. If you are certain that there are no other sellers for your product, and you can win the Buy Box then FBM is a good option to sell through. Advantages of FBM Control over Business No Unexpected Costs (No storage or fulfillment costs) Opportunity to build an independent brand Seller Fulfilled Prime There are more Amazon Prime customers then non-prime customers. Most of the consumers on Amazon searching for products get the benefits of fast free shipping of any eligible Prime product in less than 2 days. Ordinarily, these consumers only buy from sellers that offer Amazon Prime. Customers that buy from non-prime FBM sellers will have to pay additional shipping charges and will receive slower shipping which can result in your product getting overlooked. If you are an FBM seller it is possible to be accepted by Amazon into the Seller Fulfilled Prime Program which allows you to deliver to domestic Prime customers from your own warehouse. This badge is typically reserved for established businesses on Amazon with a track record of fast shipping and positive customer reviews. Once accepted into the program and your trial is complete you are able to store inventory in your own warehouse, process orders and buy shipping labels from approved carriers, pick, pack and ship your orders the same day and Seller Fulfilled Prime carriers collect and deliver orders in two days to customers.
- Turning Your Retail Store Into An Amazoner Opportunity
Getting Started with Amazon Marketplace Almost every major retailer today has a strong Amazoner presence and strategy. Smaller brick-and-mortar stores have been quite a bit slower to join the party but there’s no time like the present to get started. Add the help of an experienced Amazoner consultant and the party could get started even quicker. With Amazoner revenues still growing rapidly, that makes for many opportunities to leap ahead of the competition. Turning a physical store into an Amazoner success is also easier than many realize. In fact, it is possible to leverage the support of some true titans as you learn how to start an eCommerce store. You can use your existing brick-and-mortar store as the foundation for an Amazon-based Amazoner venture that will complement it perfectly.
- Winning the Amazon Buy Box
What is the Amazon Buy Box? The Amazon Buy Box is the white box located on the right side of the Amazon products detail page. This is where shoppers can add additional items for purchase to their cart. As a seller you can be represented in the Buy Box, your product is the one that gets added to a shoppers cart or a product that they are purchasing right away. The Buy Box can be thought of as your final e-commerce sales funnel. Sellers are constantly competing to win the Buy Box because they want their product to be selected when customers click “Buy Now” or “Add to Cart”. Buy Box Eligibility To be eligible for the Buy Box, you must have a professional Amazon seller account. This plan comes with a subscription fee priced at $39.99 per month and comes with a multitude of beneficial seller privileges. These privileges include having full access to the Buy Box. Sellers that do not have this plan are not eligible for the Buy Box. In addition to this, products that are being sold must be new and completely stocked. Amazon does have an algorithm set in place to determine which sellers of a certain product will be represented in the Buy Box. To be considered as an eligible selection for the Buy Box, sellers must have an extraordinary reputation, great customer reviews, and metrics. The focus of Amazon is to provide the best customer experience possible. By administrating Buy Box privileges, Amazon continues to maintain the best e-commerce shopping experience for its consumer base. Winning the Buy Box The best way to win the Buy Box is to optimize your Amazon strategy. Amazon is a competitive marketplace to master and although there is no set formula in place on how to win the Buy Box, there are a variety of factors that are known to sway your ability to win it. These performance factors include: History of Increased Performance: A consistent fulfillment of successfully placed large orders shows Amazon that you’re a notable and dependable seller that can deliver a positive high-quality customer experience. Exceptional Customer Service: Amazon heavily focuses on providing a positive shopping experience for each customer. Maintaining Great Customer Service: Put your customers at the core of everything that you do– By Internalizing the Amazon vision and taking the time to listen to your customers you will gain valuable insight to understand and connect with them. The needs of consumers are constantly evolving– Understanding them opens a clear path to follow necessary steps toward meeting the needs of consumers. Utilize Fulfilment by Amazon (FBA): This is one method that can be used for sellers to fulfill orders. FBA passes the responsibility of fulfillment to Amazon! Buy Box preferences are given to FBA sellers because Amazon knows that orders will be fulfilled on time. FBA Sellers are Eligible for Amazon Prime- Amazon prefers sellers that are Prime eligible to be in the Buy Box. This is because most consumers pay for Prime and prefer products that they can have delivered in two days. Conclusion: All in all, several different things can be done to help you win the Buy Box. If you need help with your strategy to win the Amazon Buy Box or have any additional questions, please don’t hesitate to contact one of our Amazoner consultants. As a full-service Amazon agency, we are dedicated to helping you increase your sales. We hope that this post was insightful. If you have any additional questions leave a comment below, we’ll be there, we’ll respond, and we will help you through the process. If you found this post to be helpful, please like, share, comment, and tell other people about it. If you need immediate advice or assistance with Amazon strategies? Talk to our Amazoner Consultant team. Thank you for reading.