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What Does Fulfillment By Amazon (FBA) Mean?

What Does Fulfillment By Amazon (FBA) Mean?

Whether you sell products on Amazon or have your own ecommerce website, Fulfillment by Amazon (FBA) lets you use one of their many warehouses to store the products you’re selling. Then when a customer orders one of your items, Amazon will pack and ship it for you as well as providing the customer with customer service and shipping updates.

Using FBA is a great way to save yourself time, and depending on your rate of sales, could be the most cost effective option for you.

Amazon handles most of the process, but shipping your items into one of their warehouses is one part of the process they don’t provide - and they are very picky about how it’s done. That’s where we come in.

If your shipment to Amazon is going to be larger than 1 metre square and at least a metre tall, your best and cheapest delivery option is by pallet.

With National Pallets, we can deliver your stock via pallet right into your chosen Amazon warehouse, quickly and efficiently. As Amazon experts, we’re proud to offer this unique service so you can rest assured that your stock will be delivered and fulfilled to the highest standard.

Is Amazon FBA Worth It?

It’s important to know that FBA isn’t for everyone, but for some it could be the difference between stagnant sales and scaling your business.

One of the easiest ways to find out if FBA could work for you is by using the FBA calculator to get a good estimate of the costs involved. Costs can vary depending on a number of factors, so this is a great way to understand if FBA is more cost effective than self-fulfillment.

Let’s look at some of the advantages and disadvantages of Fulfillment by Amazon.

Advantages of FBA

  • Reduces Workload - Fulfillment can be one of the most taxing aspects of owning an ecommerce business, not to mention time-consuming. Not only will Amazon store your entire inventory for you but they also manage your inventory, returns and track the parcels they ship. It’s undeniable that FBA takes a few tedious tasks off your hands.
  • Saves Space - If you have a decent amount of stock, you’ll need somewhere to store it. If you choose to do this yourself, it could mean investing in a warehouse and warehouse staff. FBA means you can save this cost and put the money into another part of your business, such as marketing, without worrying about order fulfillment.
  • Offer Next Day Delivery with Amazon Prime - In September 2021, a survey of 1,029 UK consumers found that 39% of people want next-day delivery. The ability to offer next-day delivery at a time when rapid retail is on the rise is a huge benefit for many business owners and customers alike and could quickly increase your sales.

Disadvantages of FBA

  • Costs - For many sellers, FBA works out cheaper. For example if you’re a large seller, you have a high turnover or you don’t have the funds for a warehouse. It can also help new sellers get exposure fast. But some people, especially those who sell across other channels, might find it’s not worth the fees for the products they’re selling. Use the FBA UK calculator to work out what your Amazon FBA fees would be./li>
  • Lack of Control - Having no control over your customer experience can be a big negative, especially if something does go wrong with a delivery - although this is less likely with a huge reputable company like Amazon. Having your shipping fulfilled by Amazon also means you can’t build up email marketing to your existing customers.
  • Strict Prep and Packaging - If you don’t meet Amazon’s packaging requirements, you could be hit with an inventory fee or your shipment may even be refused. And if each pallet isn’t labelled correctly, you could be charged for FBA Label Service. This can feel like a lot of effort especially if you’re paying a lot for the FBA service, but fees are avoidable if you stick to the Amazon Vendor Manual. Here’s everything you need to do before we collect your pallet to avoid additional Amazon fees.

So, is it better to ship through Amazon?

You know your business and your selling habits better than anyone else. FBA could be the making of your business or it could leave you feeling out of the loop when it comes to shipping your products.

Why not try Amazon FBA? You could list one of your most popular products to begin with and work out cost per value after a set period of time.

With FBA you can pay monthly, which means if you want to pull out you can recall your inventory by simply creating a removal order from Amazon and closing the listing. Here’s more information on removing inventory from an Amazon fulfillment centre.

How National Pallets Can Help

From the booking procedure to delivering your goods, we understand how Amazon FBA works.

Amazon is very specific about how goods need to be delivered, for example you must:

  1. Buy your pallet from a reputable source and make sure your pallet isn’t damaged
  2. Use clear shrink wrap because Amazon won’t accept shipments wrapped in opaque packaging
  3. Make sure forms are filled out correctly to get a good delivery slot - if your forms aren’t right this could delay you because delivery slots are given on a first-come-first-serve basis
  4. Schedule a delivery slot, otherwise the delivery vehicle won’t be allowed on site
  5. Schedule a delivery slot, otherwise the delivery vehicle won’t be allowed on site

We know it sounds like a lot to get to grips with but that’s why National Pallets have worked hard to become FBA experts, so you don’t have to worry about your delivery being turned away.

Requirements are strict, which is why you need a courier you can trust to get the job done and do it well. If you have any questions about our delivery services to Amazon, please get in touch and we’d be happy to talk you through the process and how we can help.

If FBA sounds like the next step for your business, book your pallet delivery with National Pallets today.