Amazon is an eCommerce powerhouse and is currently home to 2.5 million active sellers on its marketplace platform.
It can generate some serious income too. There are now over 25,000 sellers generating over £1 million in sales across Amazon’s ecosystem.
The majority of these sellers fulfil their products directly through Amazon using their Fulfilment by Amazon Method (FBA), but the recent coronavirus global pandemic and surge in demand for ‘essential goods’ like groceries, medical products and household goods caused Amazon to announce that it would no longer be accepting other items in its warehouses.
This action immediately had a direct impact on millions of third-party sellers, who rely heavily on Amazon’s warehouses and fulfilment solutions to get their products into the hands of the end-user.
Many Amazon sellers have now quickly realised that they were a little too over-dependent on Amazon and have quickly realised that there is another way to continue to use Amazon’s platform to sell products.
You can fulfil your own products on Amazon’s website by choosing Fulfilment by Merchant (FBM)
This option allows you to manage all of the storage, shipping and customer experience in house or you can still use a third-party fulfilment specialist to fulfil your orders for you.
Many sellers believe that by using Amazon own FBA solution it enhances your chances of winning the ‘BUY BOX’ and generating more sales, but this couldn’t be further from the truth, in fact…
- FBM Sellers can earn more revenue
- FBM Sellers enjoy better profit margins
The main downside is that sellers need to be a little more ‘hands-on’ with their business if they are shipping orders in-house, but with many choosing to use a fulfilment partner that specialises in Amazon fulfilment this means they can get that time back and still enjoy the perks of Amazon selling.
Feeling ready to switch to Amazon FBM? Here are some of our top tips for getting started…
Always provide valid tracking information
Amazon customers depend on tracking numbers to find out where their orders are and when they can expect to receive them. Make sure you keep them happy and the positive reviews coming by offering the same level of service and information they expect from Amazon.
Manage your delivery time
Amazon provides an estimated delivery time to buyers on the offer and checkout pages, so customers know when to expect an item they have ordered from you. This level of transparency and real-time information sets Amazon apart. You can modify your own handling time and transit time by following the instructions in the Manage your delivery time Help page.
Set your default return instructions
A slick returns process is the key to keeping your customers happy and getting your products back on sale as quickly as possible. Update your Amazon selling account with valid return instructions for all MFN orders. You can find more information on how to do this on the Set your default return instructions page.
Confirm your account is updated with a valid return address
When you approve a buyer’s request to return a product, Amazon sends the buyer a return label with your default return address. You will need to provide a valid return address (if you are using a third-party fulfilment partner then don’t forget to use their address). For more information on how to do this, see Set your default return address.
Comply with Amazon’s Drop Shipping Policy
Dropshipping or allowing a third party to fulfil orders to customers on your behalf is acceptable if they stick to the Amazon’s Drop Shipping Policy. To comply with this policy, you must:
- Be the seller of record of your products
- Identify yourself as the seller of your products on all packing slips, invoices, external packaging, and other information included or provided in connection with them
- Remove any packing slips, invoices, external packaging, or other information identifying a third-party drop shipper before shipping the order
- Be responsible for accepting and processing customer returns of your products
Fulfil your orders with Amazon’s Buy Shipping
Amazon wants you to use a trusted network of carriers to deliver products and with Amazon’s Buy Shipping, you can get shipping labels individually or in bulk, ship and confirm your orders, and track your shipments. Learn more about how to use and the benefits on the Buy Shipping services Help page.
If the recent changes in Amazon’s guidelines are giving you headaches, then don’t despair Amazon FBM gives you the ability to leverage Amazon’s incredible selling platform but gives you better control of your stock and customer experience then now could be the perfect time to switch to FBM.
Interested in learning more about how use Amazon FBM to help you to increase profits? Contact 3PL for our expert advice.
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