What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon is outsourcing order fulfillment to Amazon. It's responsible for processing orders and shipping products to your customers.

The Amazon fulfillment centers offer the following services:

• **Storage:**They pick your products and secure them in their warehouse.

• **Packaging:**They process customer orders and prepare products for shipping.

• Shipping: They send the products to the customers’ doorsteps or pick-up points.

However, they also offer customer service and process product returns. If you’d like to get started with FBA, here’s how:

• **Become an Amazon Seller.**Of course, you must be a third-party seller on Amazon. Start by creating an Amazon seller account.

• Create Your FBA Account. Once done creating an Amazon account, log in to Seller Central. From there, you can set up your FBA.

• **Come up with Your Product Listings.**Start adding products to the Amazon catalog. Then, tag it as FBA inventory.

• Prepare and Ship Your Products. You should check Amazon's packing guidelines and shipping requirements. Follow them before shipping products to their fulfillment centers. Finally, ship your products.

How Does FBA Work?

The ecommerce business model has become increasingly popular in recent years. Expect the industry to define how consumers buy and do business in the future.

However, click-and-order stores should optimize their processes to have a competitive advantage. FBA is a viable solution for streamlining the order fulfillment process.

Now, let’s keep it straightforward. Here’s how FBA works:

• **You Ship Products to Amazon Fulfillment Centers.**Make sure to follow the packing and shipping guidelines mentioned above.

• Amazon Stores Your Products. Amazon is responsible for picking, sorting and securing your products.

• Your Customers Place Orders Online. Once products reach the Amazon fulfillment center, they are available for orders. Customers can now purchase them online.

• Amazon Performs Order Processing. Amazon processes customer orders placed online. Their employees handle the entire production, from processing payments to updating inventory.

• **Amazon Ships Products to Customers.**Amazon prepares products through proper packaging. Once done, they ship them to your customers.

• Amazon handles most of the customer support tasks. After processing orders, they also update your customers. They go as far as processing product returns and customer refunds.

The Benefits of Using FBA

At this point, you know what FBA is and how it works. However, this begs the question: Why should you opt for it?

FBA comes with a handful of benefits. Here are some of these:

It can be cost-efficient.

Andrew Gonzales, President of Business Loans, offers funding to online entrepreneurs. However, he always suggests that ecommerce businesses capitalize on FBA.

Gonzales said: “FBA fulfillment center handles almost everything for you. It's more cost-efficient than to build a warehouse, get employees and hire a courier.”

It can streamline processes.

Online businesses should stay on top of product storage, packaging and shipping. Each process involves some crucial steps. That is not to mention inventory, customer service and product returns. As such, FBA handles these processes seamlessly and effectively.

David Aylor, Founder & CEO at David Aylor, said FBA helps entrepreneurs avoid complaints: “They have representatives who process orders and update customers. They also carry out product returns and refunds to avoid legal ramifications.”

It can help build consumer trust.

Customers today have higher expectations than ever before. They now demand experience-driven commerce. It means an immersive and personalized experience through omnichannel solutions.

What’s good about FBA is its multichannel capability. Customers place orders on any channel: your website, social media or online marketplace. Such an omnichannel solution helps build customer trust.

Lastly, Amazon is a big brand name that resonates with customers.

It can help boost profits.

The end goal of running an online business is earning profits. The order fulfillment process can either make or break your ecommerce. That’s where FBA comes in for process optimization.

Jim Pendergast, Senior Vice President of altLINE Sobanco, provides working capital for businesses: “[U]sing FBA for your ecommerce business… will help you reduce operating costs. It will also help increase your bottom line.”

You can easily scale your business

Ecommerce has become a buzzword in business. It provides ease and convenience to both online sellers and consumers. But as a novice entrepreneur, consider plenty of things for growing your business.

Tapping Amazon can help scale your business. They’ll streamline your order fulfillment process, from storage to packaging to shipping. They’ll provide excellent customer service and handle product returns. Ultimately, they’ll help your online business grow and succeed.

The Final Word

The ecommerce sector shows no signs of stopping. Online entrepreneurs should do what it takes to scale their operations. On top of this is optimizing their order fulfillment process.

That said, leverage fulfillment by Amazon. Understand what FBA is and how it works. Most importantly, consider the valuable information above.

With informed decisions, you’ll reap the benefits FBA has to offer. Ultimately, it will scale your operation, satisfy your customers and boost your profits!