Complete Information About FBA
“CUSTOMERS SELL THINGS, WE DO THE SHIPPING”, A WIN-WIN Situation for both the seller and the service provider. Amazon is known for the best fulfillment system across the world.
Availing FBA, one store’s the product in the fulfillment center, and they COLLECT, PACK AND DELIVER YOUR ORDERS.
This method could help you raised your business scale and reach more and more customers across the world.
ON AMAZON, SELLER CAN SELL EITHER THROUGH MFN (Merchant fulfillment Network) or through FBA ( Fulfilled by Amazon).
In MFN, the orders comes to seller’s dashboard and the seller is able to process his order according to his comfort and time availability. When the order is received, each order have a handling time which is reset in the account before. It is customizable. In short, in MFN, seller gets a chance to schedule the order. However, in FBA, THE SELLER can send his products or stock to the warehouse, FULFILLMENT CENTRE (FC). The products are stored over there and when the order is received, the order is shifted from the warehouse on behalf of the seller to the customer.
LET’S USE AMAZON SERVICES TO COLLECT, PACK AND DELIVER YOUR ORDERS
The FBA PROGRAMES BRINGS TO THE SELLER, NUMEROUS ADVANTAGES:
HOW THE SELLER CAN ENROLL UNDER FBA PROGRAMME?
- The seller doesn’t need to schedule orders. Lets take an example, the seller has to schedule 100 orders individually, pack them, print shipping bills and paste on the package. Further, they have to wait for amazon delivery guys or easy ship to pickup the products. Then it is delivered to customer. However in FBA, the advantage is that all the orders are automatically shipped by the warehouse, which automatically reduces the logistic issues.
- The seller doesn’t need to employ a lot of persons and built a team for the same. The doesn’t need to handle the return themselves. Because, once the return comes, seller need to again open the packaging, check the products if damaged or fine . The seller has to file a claim for damage on amazon known as SAFETY CLAIM.
- WRONG RETURN/ SWITCHED PRODUCT: In case the seller gets a switched product, the seller again has to file as switch claim. So, in FBA shipping, return , damage claim is done by FBA.
WHAT IS FREE OF COST IN THE MARKET?
SHIPPING, RETURNS, REMOVALS AND STORAGE , UNDER FBA..
- When the sellers product is stored in the warehouse, the product automatically gets a “PRIME TAG”, It enables the product to get a better visibility on the platform and increases the trust value of the seller for that particular product .
- The delivery time for the prime product , which is stored in the warehouse is 2 days. Product get delivered to the customers in 2 days, except heavy and bulky items ( product beyond 18 kg, whose longest side is more than 110 cm ).
- These 3 things, for sure enables the sellers to grow . If you have faster delivery, better visibility and higher order processing capability because of FBA. The seller automatically could focus more on other core areas such as product selection, listing ,cataloging of his account and is able to grow or scale his business multiple fold then he was doing on MFN.
- MFN account has a threshold beyond which they do not receive orders. Its an internal mechanism whereby amazon regulates the amount for that what goes into an MFN account.
- Under the FBA programme, we also have FBA CLUSTTER programme ,whereby a seller can put his products in different warehouses and enables the seller to have better visibility in that particular region. For example: a seller has stored in Delhi warehouse, Chennai warehouse so that if he has orders from that particular region , then it will be shipped faster and also the shipping fee will be lesser as it will come under regional or local delivery. Compared to that, national delivery is expensive. For say, if a seller has 100 orders and 80 orders are from South India and 20 from North so he has lot of shipping fee that he has to pay to Amazon. But here, he has to pay lesser fee to amazon for delivery.
The seller needs to go to the AMAZON SELLER CENTERAL and try out the FBA programme whereby, he can fill up the form and sign the BSA NOC agreement. Then he has to do APOB (Another Place of Business) and his account would be whitelisted for that particular FBA. Post that, the seller can create a shipment of the product that he wants to send. Once, the shipment is created, seller can send the shipment to the particular warehouse to the schedule. The seller also has to fix an appointment if the space in available in the warehouse or not and the time is also being allotted to a particular product.
After creating shipment, the seller has to prepare the product for FBA . Preparation includes packing , putting FNSQ codes on the product and ship it.
However, the seller can ship the product by himself or could use Amazon Transport Service to let his products picked up from his place and send it to the warehouse .
Once, it is present in the warehouse, the inbounding is done by the FBA personals.
Post inbounding, the product gets live on amazon and is ready to sell.
So, remember these 4 simple steps
What is MSF (MULTI-SELLER FLEX PROGRAMME)?
- Enroll in FBA
- Do the product listing
- Pack and prepare the products.
- Ship them to Amazon
Those states which do not have FBA CENTRES, Amazon has appointed third party vendors to act as FC centre , you can connect to nearest MSF, then you can request them to whitelist your account to a particular msf , then the BSA-NOC agreements. Then, APOB (Another Place of Business) registration under GST and you can send your shipments to the warehouse.