{"id":111790,"date":"2022-09-11T15:33:25","date_gmt":"2022-09-11T15:33:25","guid":{"rendered":"https:\/\/www-dev.channeladvisor.com\/blog\/uncategorized-uk\/how-does-fulfillment-by-amazon-work-everything-you-need-to-know\/"},"modified":"2023-11-29T11:01:11","modified_gmt":"2023-11-29T11:01:11","slug":"how-does-fulfilment-by-amazon-work-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/old.rithum.com\/uk\/blog\/how-does-fulfilment-by-amazon-work-everything-you-need-to-know\/","title":{"rendered":"How Does Fulfilment by Amazon Work? Everything You Need to Know."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019re going to outsource your fulfilment, Amazon is a pretty safe bet. The e-commerce giant has not only been around the block when it comes to navigating the challenges of fulfilment and last-mile delivery \u2014 it pioneered the fast, convenient shipping consumers now expect from every online retailer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2018, <a href=\"https:\/\/www.statista.com\/statistics\/1020046\/global-fba-usage-top-amazon-sellers\/\">45%<\/a> of Amazon UK sellers are using the <\/span><span style=\"font-weight: 400;\">Fulfilment by Amazon (FBA), through which Amazon stores, picks, packs and ships orders for sellers from fulfilment centres around the world, lowering shipping costs by 30%. What\u2019s more, Amazon even claims sellers can achieve a 20-25% increase in sales after adopting FBA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So how does it work? And how can you join the many other Amazon sellers who take advantage of FBA?\u00a0<\/span><\/p>\n<h2><b>How Fulfilment by Amazon Works<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In classic Amazon fashion, the marketplace giant has made onboarding with FBA super simple with four easy steps:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Create an account. <\/b><a href=\"https:\/\/sellercentral.amazon.com\/gp\/ssof-invite\/join-fba-redirect.html\/?ref_=asus_fba_main_setup_i&amp;pf_rd_m=A2CA1KKALKCX2O&amp;pf_rd_s=top-6&amp;pf_rd_r=0CZYT68T4J27GPDDYVEB&amp;pf_rd_p=1294425882&amp;scInvite=Y&amp;pf_rd_t=101&amp;pf_rd_i=fba&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\">Set up your FBA<\/a> by <a href=\"https:\/\/sell.amazon.com\/sell.html?ref_=sdus_fba_start_sell\" target=\"_blank\" rel=\"noopener\">creating a seller account<\/a> (if you don\u2019t already have one) and logging in.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Choose your products. <\/b><a href=\"https:\/\/sell.amazon.com\/sell.html?ref_=sdus_fba_main_sell_ffl#adding-your-products\" target=\"_blank\" rel=\"noopener\">Create your product listings<\/a> and specify which ones will be part of <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/200141220?ref_=sdus_fba_main_xscus_200141220&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\">FBA inventory<\/a>.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Prepare for shipping. <\/b>Prepare your products for safe transport to an Amazon fulfilment centre, making sure to follow the company\u2019s <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/G201021850?ref_=sdus_fba_main_xscus_201021850&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\">packaging guidelines<\/a> and <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/200141510?ref_=sdus_fba_main_xscus_200141510&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\">shipping and routing requirements<\/a>.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Ship to Amazon. <\/b>Print your Amazon shipment ID labels and <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/201021820?ref_=sdus_fba_main_xscus_201021820&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\">ship your products<\/a> to Amazon fulfilment centres.<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That\u2019s it! Once Amazon receives your shipments, the items are available to buy. Need more help? <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon#\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Watch this convenient video<\/span><\/a><span style=\"font-weight: 400;\"> from Amazon to help you easily onboard to FBA.<\/span><\/p>\n<h2><b>How Much Does Fulfillment by Amazon Cost?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As usual, it depends. Amazon charges different amounts for FBA based on the product type and size. This manifests in six different types of fees, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inventory storage fees<\/b><span style=\"font-weight: 400;\"> based on your daily average volume of inventory measured in cubic feet\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term storage fees<\/b><span style=\"font-weight: 400;\"> for all items stored in a fulfilment centre for more than 365 days<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fulfilment fees<\/b><span style=\"font-weight: 400;\"> for picking and packing your orders, shipping and handling, customer service and product returns\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unplanned services fees<\/b><span style=\"font-weight: 400;\"> when inventory arrives at a fulfilment centre without proper preparation or labelling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Removal order fees<\/b><span style=\"font-weight: 400;\"> for returning or disposing of your inventory in a fulfilment centre<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Returns processing fees<\/b><span style=\"font-weight: 400;\"> to provide customers with free return shipping<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Not sure about the cost? Amazon offers a handy <\/span><a href=\"https:\/\/sellercentral.amazon.com\/hz\/fba\/profitabilitycalculator\/index?lang=en_US&amp;ref_=sdus_fba_main_xscus_fbacalc_2&amp;initialSessionID=apay%3D131-2827587-5756630&amp;ld=NSGoogle&amp;ldStackingCodes=NSGoogle\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">revenue calculator<\/span><\/a><span style=\"font-weight: 400;\"> to help you estimate your FBA fees so you\u2019re aware upfront.\u00a0<\/span><\/p>\n<h2><b>The Benefits of Fulfilment by Amazon<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Don\u2019t be discouraged by FBA fees. Fulfilling through Amazon means a number of worthwhile benefits that other sellers don\u2019t receive, including:<\/span><\/p>\n<h3 style=\"padding-left: 40px;\"><b>Shipping Perks<\/b><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">When you fulfil with FBA, your products are automatically eligible for Amazon Prime free two-day shipping \u2014 a huge boost for winning the Buy Box. Even non-members receive the benefits of free shipping on eligible orders when you use FBA. Customers feel more confident when FBA listings are displayed with the Prime logo, meaning Amazon handles the packing, delivery, customer service and returns.<\/span><\/p>\n<h3 style=\"padding-left: 40px;\"><b>Amazon-Led Customer Service and Returns<\/b><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">No need to worry about cumbersome service inquiries or returns. FBA users have access to Amazon\u2019s global customer service network, meaning they can contact support via phone or email, day or night. Plus, Amazon\u2019s online returns centre provides help pages and details so customers know exactly where to go. The best part? No additional fees! (Except for returns processing in certain categories.)<\/span><\/p>\n<h3 style=\"padding-left: 40px;\"><b>Opportunities for Scale<\/b><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">Going global? Amazon offers specialised services so you can expand your business to <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon\/fba-international.html?ref_=sdus_fba_start_export#fba-export\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">100+ countries<\/span><\/a><span style=\"font-weight: 400;\">, with fast delivery in Prime-eligible <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon\/fba-international.html?ref_=sdus_fba_start_paneu#pan-eu\"><span style=\"font-weight: 400;\">European countries<\/span><\/a><span style=\"font-weight: 400;\"> as well. Plus, <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon\/fba-subscribe-and-save.html?ref_=sdus_fba_start_sns\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Subscribe &amp; Save<\/span><\/a><span style=\"font-weight: 400;\"> options encourage repeat customers, while <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon\/fba-multi-channel.html?ref_=sdus_fba_start_mcf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">multichannel fulfilment<\/span><\/a><span style=\"font-weight: 400;\"> attracts shoppers from all your online properties.\u00a0<\/span><\/p>\n<h3 style=\"padding-left: 40px;\"><b>Cost-Effective Fulfillment<\/b><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">FBA can be very cost effective, as you\u2019re only charged for the storage space you use and the orders Amazon fulfils. Plus, the cost of shipping is included in your fees. FBA also helps keep costs down for your <\/span><a href=\"https:\/\/sell.amazon.com\/fulfillment-by-amazon\/fba-small-and-light.html?ref_=sdus_fba_start_snl\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">lightest and lowest<\/span><\/a><span style=\"font-weight: 400;\"> cost products so you don\u2019t lose money.\u00a0\u00a0<\/span><\/p>\n<h2><b>Rithum Helps You Fulfill Amazon Customer Expectations<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Have confidence in your FBA process with <\/span><a href=\"https:\/\/www.rithum.com\/uk\/solutions\/shipping-management\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rithum Shipping Management<\/span><\/a><span style=\"font-weight: 400;\"> helping you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sync inventory, orders and tracking with your Rithum account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track the status of your products in the FBA supply chain<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chart and understand trends in the number of products and sales tied to FBA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quickly pinpoint inventory issues including excess, stranded and aged inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forecast necessary inbound quantity and begin the inbound shipment request directly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatically adjust listings to seller-fulfilled when FBA goes out of stock<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.rithum.com\/uk\/request-a-demo\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Contact our team today<\/span><\/a><span style=\"font-weight: 400;\"> for a demo of the Rithum platform and a look at how our <\/span><a href=\"https:\/\/www.rithum.com\/uk\/services\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Managed Services<\/span><\/a><span style=\"font-weight: 400;\"> can help you get started and continually optimise your FBA process.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re going to outsource your fulfilment, Amazon is a pretty safe bet. The e-commerce giant has not only been around the block when it comes to navigating the challenges of fulfilment and last-mile delivery \u2014 it pioneered the fast, convenient shipping consumers now expect from every online retailer. In 2018, 45% of Amazon UK [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":111201,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[7715,10085,1394,12829],"asset-type":[13745],"audience":[13408,13411],"bio":[14209],"topic":[6680,6685],"class_list":["post-111790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-amazon-uk-2","tag-fba-2-uk","tag-fulfillment","tag-shipping-costs-uk","asset-type-blog-uk","audience-brands-suppliers-uk","audience-retailers-uk","bio-rithum-team-uk","topic-brands-uk","topic-marketplaces-uk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Does Fulfilment by Amazon Work? 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