When we talk about Amazon, there is no need for introductions: landed in Italy just over ten years ago, the American e-commerce giant has long established itself as the leading e-commerce site in Italy, being able to count on an almost infinite product catalog and a widespread network of logistics centers throughout the country.
In an article previously published on the blog, we have already talked about how to sell on Amazon, but not everyone knows that Amazon also offers a logistics solution, Fulfillment by Amazon or Amazon FBA (Fulfilled by Amazon), with which sellers can send their goods to Amazon, which in turn will take care of all the logistics and after-sales service aspects on their behalf.
In this article, we will find out what FBA is and how it works, analyzing its strengths and weaknesses, as well as costs and characteristics, to help you understand whether to entrust the management of your warehouse to Amazon.
What is FBA:
Fulfillment by Amazon, also known as amazon FBA box labels, is a service offered by the e-commerce giant that allows sellers to send their goods to Amazon’s fulfillment centers: at that point, the management of shipments, customer support, and the procedures for returns and refunds of products will be taken care of by Amazon itself.
In a nutshell, Fulfillment by Amazon allows merchants to delegate all logistics and after-sales assistance operations to Amazon, which will manage these aspects with complete autonomy and without the need for further intervention by merchants.
Who should rely on Amazon to manage e-commerce logistics:
Before understanding whether to entrust e-commerce logistics to Amazon, let’s take a step back: is it worth selling on Amazon?
Selling on Amazon means being able to access a global showcase and a whole series of additional services that the e-commerce giant makes available to you. As one of the world’s best-known brands, selling on Amazon will help you leverage brand awareness to reach millions of potential customers who buy with confidence on the e-commerce site. In addition, the algorithm for searching for products on Amazon takes e-commerce reviews into serious consideration: this means that if you work well and offer quality products, positive feedback will not be long in coming, helping to increase your visibility on the marketplace.
At the same time, however, selling on Amazon also has disadvantages:
competition is very high, and if you sell generic or particularly common products, the risk of never being able to stand out is very high. Also, remember that by selling on Amazon you are putting your business project in the hands of an external marketplace: this means that your brand, customers, and sales will never be 100% yours, because they will always go through Amazon.
As always, it all depends on your needs and growth goals, which you should have already considered when drafting your e-commerce business plan. Back to us, who should rely on Amazon to manage e-commerce logistics? As we will see later, entrusting logistics to Amazon involves a series of costs that increase proportionally to the volume and time of storing the goods in Amazon’s warehouses. This means that if you already have a warehouse and sell a large amount of products, the best choice is probably to continue to manage your logistics independently. If, on the other hand, you prefer to sacrifice a part of your profits to outsource logistics and after-sales service aspects, FBA is a very competitive and reliable service to focus on.
The benefits of FBA
Visibility of your products on the global marketplace:
During the first quarter of 2021, the Amazon Prime service alone reached 200 million subscribers worldwide. There is no doubt that one of the main advantages of selling on Amazon and relying on its logistics network is the possibility of reaching an almost infinite number of customers: the products sold through Amazon FBA, in fact, are available for purchase in all European markets in which Amazon operates directly (Italy, United Kingdom, Germany, Poland, Czech Republic, France, Spain, Netherlands, Sweden).
Access to fast shipping:
By entrusting your logistics to Amazon, you will automatically benefit from Prime fast shipping in 24/48 hours for your items. According to research, 66% of online shoppers in Italy expect to receive their package within 3-5 days from the time of ordering. This means that by allowing Amazon to ship products on your behalf, customer satisfaction will be virtually guaranteed.
Better positioning of your products:
Sellers who rely on amazon FBA enjoy better positioning of their products on Amazon search pages, as well as the “Prime” stamp in search results that greatly increases the visibility of the products.
Amazon FBA Onsite
FBA Onsite is a variant of the service that offers greater flexibility and control to the seller. This modality allows the use of the seller’s own facilities to store the products, leaving the following stages such as packaging, labeling, shipping, and after-sales service to Amazon.
This option offers the possibility of integrating the company’s own logistics operations with FBA services, which can be especially interesting for sellers who already have a storage structure and at the same time want to outsource operations. That is, with FBA Onsite it is possible to have a customized solution that combines the seller’s storage infrastructure with Amazon’s logistics experience.
Benefits of the modality
Amazon FBA Onsite excels at providing sellers with greater customization and control over their logistics operations. This can result in advantages in terms of cost, efficiency, and adaptability to specific business needs.
In the end, the choice between FBA Classic and FBA Onsite depends on the characteristics of each e-commerce and the objectives of the seller. It is important to carry out a detailed analysis of each service in the context of your online business.
Technology in Amazon distribution centers
To ensure efficiency, amazon FBA label service are equipped with cutting-edge technology. From automated systems and robots for transporting items within centers to machine learning and artificial intelligence in optimizing inventory management, for example, the platform invests considerably in technology.
In addition, quality control and monitoring mechanisms are used to ensure the correct handling of all items and avoid delays. In other words, everything is designed to maximize the operational efficiency of Amazon’s distribution channel.
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