Fulfilment by Amazon (FBA) is known for Amazon FBA.
It is a service that allows sellers like you, me, or any other company besides Amazon to store their products in Amazon’s fulfillment centers (Mostly an automated warehouse by Amazon).
Where Amazon handles storage, packaging, shipping, customer service, and returns on behalf of the seller.
How It Works:
Send Inventory: Seller ships their products to an Amazon fulfillment center.
Storage: Amazon stores your inventory until it is sold.
Order Fulfillment: When a customer orders your product, Amazon picks, packs, and ships it.
Customer Service & Returns: Amazon handles customer inquiries, refunds, and returns.
Benefits:
Prime Eligibility: Your products qualify for Amazon Prime’s fast shipping.
Hands-Off Fulfillment: Amazon handles logistics, so you focus on sales.
Scalability: It’s easier to scale your business without managing storage and shipping.
Downsides:
Fees: Amazon charges storage and fulfillment fees, which can eat into profits.
Inventory Control: You rely on Amazon’s warehousing, which can lead to storage limits or delays.
Competition: Many sellers use FBA, so competition is high.
