Introduction of FBA, FBM and FBP
What is FBA (Fulfillment by Amazon):
FBA is a shortening for Fulfillment with the aid of Amazon (FBA). This is a carrier wherein Amazon takes care of warehousing your stock at their Fulfillment centers and will pick, pack, and send orders to your clients as they arrive in. They’ll even take care of returns and some of your customer service.
How FBA works?
Seller sends the inventory to the Amazon warehouse, where Amazon manages all the assistance regarding the storing, packaging, and shipping of the inventory. The seller can monitor his inventory through the tracking system provided by amazon. Whenever clients place an order for seller products, then amazon employees physically prepare, package, and ship the product to the specific address provided by the client. Amazon also handles the return-management of the inventory.
What Amazon charges to the seller for providing services?
For a professional account on amazon, it charges almost $40 per month. Amazon also charges on the basis of weight and dimension of the products, which ranges from $45 cents to $1.35 per unit.
FBM (Fulfillment by Merchant):
What are it and the process of Fulfillment?
FBM is an option provided by amazon through which, the seller ships the products by themselves after listing his products on amazon. Seller does not rely on Amazon and ships the inventory on his own responsibility.
Seller uses his/her own resources for the preparing, packaging, and shipping to send the inventory to a specific address of the client.
Same as the FBA, if you are a professional seller, then you have to bear $40 per month but the seller enjoys an exemption of $1.00 per item regarding weight and dimensions, as the seller is shipping by himself.
ASFP (Amazon Seller Fulfilled Prime)
It is the program in which prime sellers target only domestic prime customers and ship the order to the client’s address from his/her own warehouse.
An additional feature of ASFP is that the prime sellers are bound to ship the order in 1 day without charging any additional cost from prime customers.
Shipping costs from a seller’s point of view are a little higher as for the 3 lb package, the charges are between $13 to $30 for 1-day delivery.
Process of becoming Prime Seller:
To get the prime badge, the seller must have to provide a tracking ID having 94% or more orders, 96% or higher on-time delivery rate, and the cancellation rate should not be more than 1%.
Sellers also have to work with approved Shipping Service carriers and the carriers have to pick the order by 4 PM in the seller’s time zone
Trial Period:
50 prime orders should be fulfilled in a period of 90 days. Then seller is measured that how well he/she meet the requirements of the Seller Fulfilled Program.
