As a registered seller on Amazon.in, you could choose 3 different fulfillment method to fulfill your orders. Depending upon the category of products and number of listing, any of these fulfillment methods can be opted.
- Merchant fulfilled orders – All the orders received are managed by the merchant. From Confirming the order to packaging, dispatching & updating the order status is handled by Merchant itself.
- Easy Ship orders – Once the order is received, merchant confirms the order and packs it. The package is then received by one of the amazon pickup executive and rest is taken care by amazon.
- Amazon fulfilled orders – The stock is sent to one of the Amazon warehouse well in advance. When the order arrives, the entire process of fulfillment right from order confirmation to deliver is taken care by Amazon.
To simplify, this table explains which of the services are offered by Amazon for different fulfilment methods.
To grow yourself as seller, it is advisable to opt for FBA (Fulfillment by Amazon).
To justify this, let’s look at this from two different angles.
1.Customer / Buyer point of view:
- Trust: When the item is fulfilled by amazon, the buyer is least worried about the product quality, delivery time and packaging standards.
- Time: FBA orders are usually delivered faster as compared to Merchant and Easy ship orders.
- Return Policy: Based on the product category, FBA orders has easy return policy where the return is approved & picked up by Amazon itself.
- Packaging: Packaging of the product is as essential as quality of product. Buyer is rest assured that the product he /she will be receiving will not be damaged in transit.
- Price: If the final order value is more than Rs.500, be it from multiple FBA sellers, amazon provides free shipping.
Keeping above things in mind, the buyer chooses to order from an FBA seller even if he / she has to pay a little higher price.
2.Vendor / Seller point of view:
- Reduced infrastructure cost: By sending your stock to Amazon warehouse, one of the biggest benefit you get is that you don’t need to own a large warehouse to store your inventory. This saves a lot of your money. (Amazon charges monthly storage fees, but this is very nominal compared to the rent you pay for large warehouse)
- Managing more orders with less manpower: With increasing number of orders, it becomes difficult to fulfil them. You may need a large team to pack them all or you may miss out with the delivery deadlines. In FBA, everything is taken care by Amazon. All you have to do is have an overview on your sales and plan for your future business.
- Less cancellations: With your stock ready and available, there are no chances of order cancellation caused by unavailability of stock. (Which may be the case in merchant fulfilled order, if you do not update your inventory accordingly.)
- Lower delivery charges: As rule of thumb goes ‘with large volume the cost reduces’, Amazon charges very less for delivering your orders to customer.
- Increased chances of winning BuyBox: One of the factor that decides whether you will get BuyBox or not depends on the fulfillment channel. If your offering is fulfilled by Amazon, the chances of winning the BuyBox increases compared to Merchant fulfilled offering. Know more about BuyBox and tricks to win BuyBox here.