Do you want to send shipments directly to Amazon? This is a great choice if you want to benefit from different prices in your supply chain. It also allows you to inspect your product and add your private label before sending it to the warehouse.
However, handling the shipping process can bring a lot of challenges! With Amazon’s warehousing services, there’s much to gain from their FBA (Fulfillment by Amazon) program.
In this blog, you will learn what FBA is, how to ship to Amazon FBA, tips for a profitable shipment, and the dangers and benefits of FBA.
What Is Fulfillment By Amazon?
Fulfillment by Amazon, also known as FBA, is the outsourcing of parts of your supply chain. It means hiring Amazon to handle inventory warehousing and management. They receive the customers’ orders, look through the goods you have sent them, pick what the customer wants, package it, and send it off.
Furthermore, this FBA process offers a wide range of benefits that other sellers don’t, like two-day Prime shipping. It offers customer service, deals with their complaints, and can even handle returns.
Shipping to Amazon FBA Warehouse: Step-by-Step Guide
Before you can learn how to ship to Amazon FBA, you need to be registered for FBA in your Amazon Seller Central. Your shipment also needs to be ready to go. That means that you have gone through Amazon’s policies and ensured that your shipment follows their guidelines — especially regarding size and other measurements.
Here is the step-by-step process:
- Create an Amazon listing and get barcodes from the system for your product.
- In your Amazon portal, go to the menu. Click on inventory.
- Click on manage all inventory and then send/replenish inventory.
- Find the product you want to ship. Next to the product, click on the drop-down menu.
- Select send/replenish inventory.
- Enter packing details.
- Select the number of units you want to send.
- Choose the shipping to Amazon FBA date and shipping mode.
- Confirm the shipping details and accept.
- Print your labels and place them on the shipment.
- Choose a shipment carrier and pay for the shipment.
- Send the shipment through an Amazon-partnered carrier OR put tracking details on the package and send it through non-Amazon carriers.
How to Ship Inventory from Overseas
If you are wondering how to send products to Amazon FBA globally, Global Logistics is the answer. It lets you arrange ocean shipments in Seller Central.
To access this feature, you need to enter your ship address and for it to be different from your marketplace country. This will prompt the Global Logistics option to pop up.
Then, enter the packing details as the supplier, not your own address. At the end, you’ll also need to provide customs information.
Factors Affecting the Cost of Using Fulfillment by Amazon
FBA offers two plans:
Individual: $0.99 per unit.
Professional: $39.99 per month.
Both of these plans have additional fees based on the following factors. However, if you sell more than 40 units per month, excluding the other fees, the professional plan costs less.
Multiple factors affect the cost of each shipment. Let’s find out!
Fulfillment
You are expected to pay for the storage and fulfillment fees. Alternatively, you can select the Prime option. This gives you access to storage, order handling, pick and pack, and light handling. All of these features have fees attached to them.
Amazon has different brackets for shipment sizes, and they each have their own costs. While you should use the best size-to-price ratio, be exact with your measurements to avoid fines.
Returns and Refunds
As part of their customer service, Amazon handles returns and refunds. These come as an extra fee each time it happens.
Incorrect Shipping
If you make a mistake in labeling shipments, or if they are the wrong size or weight, Amazon will fine you. Follow Amazon’s policies and guidelines strictly for shipment size, weight, and content. Incorrect labeling can lead to unplanned service fees, as Amazon will need to provide extra service to handle your shipment.
Additional Fee
Amazon can return your shipment to you, but it will cost you. Also, if your product doesn’t sell within 181 days, you might face long-term storage fees. There could be other additional fees for specific goods and when dealing with customs.
Tips to Avoid Common Shipping Mistakes
Here are some tricks on how to ship to Amazon fulfilment center with zero issues:
- Check that the label on your shipment says exactly what it’s supposed to and matches the information on your Seller Central.
- Read the Amazon guidelines and policies and follow them to the letter.
- Include all necessary documentation — especially when working with non-Amazon carriers.
- Make sure the barcode is readable and visible on the outside of the shipment.
- Use the correct packaging to avoid spills and breakage.
- If you use a freight forwarder or a non-Amazon partnered carrier, make sure they have experience with Amazon’s process
- Keep in mind: While Amazon doesn’t let you choose which warehouse to ship to, the address you ship from affects warehouse assignment.
- Carefully package the following shipments according to Amazon policies: Liquids, breakables, flammables, toxic substances, textiles, products for children ages 3 and below, and powders and grain-sized substances.
- Only ship what you can sell within 180 days to avoid overage fees.
The Advantages of Using FBA
- You can save templates. This reduces the labor going to relabeling, especially if your units are standard.
- You can make shipments of mixed stock-keeping units.
- You can choose between a small parcel and a pallet, compare prices, and make the best decision.
- It makes your products available for Prime shipping.
- It frees you of the need to store inventory and handle orders and returns. You can focus your labor and capital elsewhere.
The Disadvantages of Using FBA
- FBA can become costly when fees pile up.
- You need to be familiar with FBA policies to avoid delays, extra charges, and warnings.
- Some goods are not allowed or have special restrictions.
- You might not agree with Amazon’s worker policies and treatment.
- You will need tools: A laser printer, scale, measuring tape, labels for printing, boxes, and packing tape.
Conclusion
FBA offers great services like inventory management, order fulfillment, and customer service. Shipping to Amazon FBA can seem tricky. But as long as you follow the guidelines and respect Amazon’s policies, the FBA process will go smoothly. Plus, avoiding common mistakes during the process can save money on inventory handling. So, pick plans and manage your inventory wisely.
