One of the common questions sellers face on Amazon is which shipping method to choose. Sellers can ship their own products, which is called fulfillment by merchant (FBM), also known as the merchant fulfillment network, or rely on Amazon to ship the products, which is called fulfillment by Amazon (FBA). Both systems have their own advantages and disadvantages, which are of great reference significance for product selection.
The significant advantages of FBA are as follows.
First, sellers have prime qualifications for sales. Sellers using the FBA model are eligible for nearly 100 million Amazon Prime member subscribers. Prime customers buy more frequently, spend more each year, and account for half of Amazon’s customer base. Sellers’ products are eligible for Amazon Prime’s free two-day shipping service. Sellers using Amazon Prime may sell more products because the seller’s listings are associated with Amazon, so they can make more profits.
Second, sellers have the Buy Box advantage. Sellers with FBA have more opportunities to win the Buy Box. Sellers with the Buy Box have greater sales potential than other sellers on Amazon, so it is crucial to win as many Buy Boxes as possible. Although there are other factors at work, FBA is definitely an important factor.
Third, the shipment is completed by Amazon fulfillment centers. Amazon uses a state-of-the-art fulfillment and logistics network to process and ship orders in a timely manner. Inventory is systematically stored in Amazon warehouses and fulfillment centers. Amazon takes care of the logistics part, and sellers can focus on other key aspects.
Fourth, customer service and convenient handling of returns. In addition to handling order fulfillment for sellers, Amazon will also provide customer service for the products and handle any return issues that may arise in the process.
Fifth, sellers using FBA will display product listings in higher positions in search results. Although there is no official statement from the authorities, it is well known that Amazon fulfillment is one of the main factors affecting Amazon’s SEO. This means improved conversion rates, that is, more exposure and higher sales. In addition, there are requirements for the box size of Amazon FBA goods entering the warehouse. Any side of the box containing multiple standard-sized items or oversized items must not exceed 25 inches (ie 63.5 cm). Boxes that are too large for large items may be restricted from shipping privileges, incur additional fees or be rejected at the operation center.
When weighing the final box weight, you should weigh the boxes and pallets and make sure to provide the correct value for each batch of goods. All cartons must also meet the following weight requirements: Boxes must not exceed the standard weight limit of 50 pounds (ie 22.7 kg) unless they contain a single item over 50 pounds. For single items over 100 pounds, please indicate “mechanical lift” on the top and side of the box. Boxes containing jewelry or watches must not exceed 40 pounds. Therefore, sellers should be familiar with the product requirements of Amazon warehouse FBA restrictions.