As an online seller, you need and want access to Amazon’s huge base of Prime members. That’s a given.
Now 95 million people strong, it’s characterized by frequent shoppers who each spend about $1,400 per year – and who routinely look for the Prime badge when deciding which Amazon merchant to buy from.
But does meeting Prime’s two-day shipping promise mean that your only viable choice for getting orders out the door is Fulfillment By Amazon (FBA)?
In a new eBook just released by Amware, we take an up-close-and-personal look at all three Amazon fulfillment options available to merchants – Fulfilled By Merchant (FBM), Fulfillment By Amazon (FBA) and Seller Fulfilled Prime (SFP) – and give you the low-down about the PROs and CONs of each.
Which Amazon Fulfillment Method Is Best for You?
Amazon Fulfillment Options: The Darker Side of FBA
In the eBook, we also walk you through key reasons why some shippers have decided to migrate away from the FBA model, including:
- Inferior Warehousing Economies Of Scale: “For us, FBA was not a sustainable fulfillment model. We had increased orders, but the storage costs and fees were too high, particularly for our bulkier products.” (CEO of growing eTailer)
- Sticker Shock: “We were surprised at the overall cost of FBA’s service, which was higher than what we could get from other national fulfillment companies that were much smaller in scale.” (CEO, Nutritional Supplement Company)
- Lengthy Inventory Reconciliation Problems: “In general, FBA’s attitude is that they are right unless proven otherwise. The internal resources required to manage this administrative back and forth are not sustainable for a lean retailer.” (CEO of auto parts eTailer)
Plus, we let you in on one not-so-confidential “secret” that Amazon really won’t mind you hearing: it’s actually possible for a top-notch seller with its own fulfillment program to win the coveted “Buy Box” slot, as long as that seller meets the Prime program’s requirement for 2-day shipping.
Among Amazon fulfillment options, Seller Fulfillment Prime (SFP) is growing in popularity among companies that need the revenue from Amazon Prime buyers but also want to manage their own fulfillment operations – either themselves or through a third party fulfillment company.
Please contact Amware if you’d like to arrange a discussion about the strategies you should consider to ensure your Amazon fulfillment strategy is as effective as it should be.