How does Amazon FBA work?
As a partner of Amazon, you have the option to choose for in-house fulfillment, where you take care of the logistics process yourself, or Fulfillment by Amazon (FBA). If you choose for FBA, you can take advantage of the marketplace's highly advanced logistics network, infrastructure, and delivery service.
All you have to do as a partner is make sure that the products you want to sell are delivered to Amazon's warehouse. From this point, Amazon takes care of the rest. They handle the shipping, customer service, refunds, and returns, while all FBA inventory can be tracked through Amazon Seller Central.
If you are looking for a way to save time and scale your business or need an end-to-end solution for inventory storage, shipping, and returns, along with handling customer service on those orders, then FBA may be the right option for you.
Brandsom specializes in selling on marketplaces like Amazon. If you want to know more about the best Amazon strategy for your brand, you can read more in our extensive Amazon blog!
With Fulfillment by Amazon, you only pay for the services you use. You don't pay a fixed monthly subscription unless you specifically choose this option.
Their subscription plan gives you the option of paying per item sold or a fixed monthly amount. You can change or cancel the subscription at any time.
Listed below are some of the costs for various services you can choose from with Amazon.
Different rates apply for the low season and high season, as it's always a lot busier around the holidays.
With Fulfillment by Amazon, there are three different options to choose from:
- Multi-Country Inventory (MCI)
- European Fulfillment Network (EFN)
- PAN-European FBA
Which option is relevant to your brand depends very much on your specific goals. Listed below are the differences between the three options.
Fulfillment by Amazon is a great solution if you're a brand owner that likes convenience. Amazon takes a lot of work off the hands of entrepreneurs and lets partners benefit from the familiarity, reach, and reliability of the brand. All you have to do is choose the right storage and transport methods that best suit your expansion strategy.
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