Posted by Alex Jackson on 2nd Aug 2019
Back in 2006, when Amazon first launched their Fulfillment by Amazon program, most industry analysts were not throwing around words like innovative or revolutionary to describe it. Quite the contrary, this was 2006, Amazon was big but not the dominant force that it is today. At the time, Fulfillment by Amazon was looked upon as quite a big gamble and likely to fail, after all what business would willingly entrust their goods to a scrappy internet company like Amazon to manage and fulfill their shipping needs? Up to this point, Amazon was a traditional retailer but in a virtual environment. They bought and sold products just like any other conventional retailer. Fulfillment by Amazon and its phenomenal success fundamentally changed the company and to describe Amazon today as a retailer, would be, to put it mildly, an oversimplification. Fulfillment by Amazon has been hugely profitable for the company, not only are they making a profit on each sale, they make money storing, processing, and shipping each sale while minimizing their own risk. Amazon no longer needs to risk buying a product these days, when they have the manufacturer to sell it via their platform and still take a healthy chunk of the profits.
There have been a few attempts to emulate the Fulfillment by Amazon model, most notably by FedEx but now it may be getting a real challenger in the form of the number two online marketplace in the U.S. eBay. EBay's fulfillment service is a bit different; it's not planning on building massive distribution centers like Amazon or hiring an army of eBay branded trucks. Instead it's farming this portion of the business out to third parties. These third parties will be doing the legwork of storing, processing, and shipping goods, and the ultimate goal is twofold. One it's to increase the speed of delivery of high-volume items and two it's to increase brand recognition as each shipment will be packed in an eBay branded boxes. EBay's managed delivery program is scheduled to roll out in 2020 and if successful could be a boon to eBay and more importantly to independent retailers like you. Amazon has a firm hold on the fulfillment business, and it needs a shakeup. Increased competition in the form of eBays managed delivery could loosen this grip and lead to lower costs for sellers using either Amazon's or eBays fulfillment programs. It's also guaranteed to lead to increased sales on eBay's platform, faster delivery, and greater brand awareness will bring in new shoppers that have previously relied exclusively on Amazon for their shopping needs. Independent retailers thrive in a competitive market, and this could be a move that reshapes the current state of online retail.
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Amazon is changing their returns policy and these changes are pretty significant for the third party sellers handling their own fulfillment. Fulfillment by merchant or FBM has been the preferred method for smaller sellers or those not willing or able to absorb the costs of fulfillment by Amazon which can add up if you are storing large quantities of [...]
Fulfillment by Amazon the greatest thing since sliced bread for small and medium sized internet retailers, but recently some of the magic has faded with the increasing costs for storage and handling fees. Apparently others have been taking note of the growing frustration experienced by these sellers and that someone is FedEx. Wait why would FedEx want to get [...]
It’s happening again Amazon is tweaking FBA and it’s time to take a look and learn how this will affect your bottom line. The new pricing will go into effect February 22nd and the changes will cover fulfillment fees, monthly storage fees and seller shipment requirements plus a few new bells and whistles.1.Fulfillment changes – Fees are going up [...]
This year we have seen quite a few changes from Amazon on their FBA program. Back in June we talked about the changes in storage fees nearly doubling fees right before the busy holiday season. Now amazon Is putting in new restrictions on sellers prohibiting those that have not shipped their first load to Amazon before October 10th from submitting [...]
FBA or FBM you might say wth? When you see acronyms like this but don’t worry we are setting out to demystify these Amazon related acronyms and to determine which is right for your business. Fulfillment by merchant(FBM)- The vast majority of new sellers and small volume sellers will most likely select this route and there are a lot [...]
If you missed out last year, here is your chance to cash in on a monster promotion Amazon’s Prime Day. Prime day is scheduled for this July the exact day has not yet been announced. In 2015 to celebrate Amazon’s 20th anniversary they launched their first Prime day on July 15th. While there were some thumbs [...]
Yea we know it’s not even summer yet and we are talking about the holiday season (don’t worry we will remind you when we get closer) but that’s also why Amazon is announcing now that they will be more than doubling their storage fees in November and December for FBA sellers. The small silver lining here is that they [...]