When running a physical goods business, the fastest way to save time and money is to have proper management of logistics processes. Having a solid logistics process is difficult, so if you’re an Amazon seller, it’s worth a look on how to leverage Amazon’s expertise and efficiency.
Fulfillment by Amazon (FBA) is a service that sellers can subcontract. In this model, Amazon takes care of everything related to the sales process, distribution, shipping, packaging, and collection.Therefore, companies send their products to Amazon’s logistics centers so that they handle everything that follows after a user clicks to buy.
The benefits of utilizing Amazon’s logistics model
Each part of the sales process is necessary to enhance results and achieve customer loyalty by providing high-quality service. Many entrepreneurs who sell on this website do not have the operational resources to operate the entire process, which limits their area of influence and consequently reduces their sales opportunities.
Now enter Amazon, which has one of the most advanced logistics management networks in the world.
The best part of Amazon logistics is thatyou can store your products in Amazon’s logistics centers. From there, Amazon will collect, pack, and send products to shoppers. Moreover, Amazon will provides any necessary customer service.
The most important thing is that the logistics models on Amazon can help you expand your business and acquire more customers at a lower cost. Additionally, you can provide the Prime badge on all eligible offers.
How to use FBA
These 4 steps will help you get started with FBA.
1. Create an Amazon seller account and log in to Seller Central to proceed with the official registration.
2. Create a list of your products you’d like for FBA. It is best to not include all of the products in your catalog as part of Amazon logistics, you can choose this option according to your needs.
3. Follow the preparation and packaging guidelines so that your products arrive safely at the nearest logistics center.
4. Send your products to Amazon.
The benefits of being backed by Amazon’s Customer Service
In addition to the benefits on sales and distribution, this service also allowscustomers to contact Amazon’s Customer Service help center, either by phone or email, to resolve any issues for you.
This service is an add-on with no additional changes (with the exception of processing fees for returns for a few product categories).
Easier Returns Processing
Return policies are processed directly by the contact center and do not require seller intervention either. Through this system, Amazon decides whether an Amazon Logistics product is eligible for return.
In this case, and to ensure customer satisfaction, Amazon may accept returns outside the timeframe indicated in these policies.
For processed returns, Amazon will verify the condition of the product and if it still meets its quality standards, it will be re-added to the inventory for sale. This way, you avoid greater losses.
Non-return Refund
Another advantage of Amazon Logistics are the non-return refunds. This is a mechanism that serves to maintain customer satisfaction in the event of a problem with a product.
“Customers do not have to send the product back to the logistics center. Some of the products that are not eligible for return may be eligible for a refund,” says Amazon.
Inventory Adaptability
It might be a common thought that the Amazon logistics services are exclusive for large companies that handle huge inventories, but this is not true.The reality is that there is no minimum number of products, each model is created based on your inventory. Some of these models are:
- Small and lightweight products. Reduces the management cost for small inventories.
- Subscribe and save. A program that offers discounts on eligible products.
- Pan-European Program. Offers fast shipping to all eligible European countries.
- Exportation. Expands your area of influence to over 100 countries without additional charge.
- Multichannel. You take care of selling your products from your own ecommerce or from third parties. Amazon receives, packs, and sends the products to your buyers as another logistics center but with the advantages that the ‘giant’ offers.
How much does leveraging Amazon Logistics cost?
Amazon Logistics are extremely viable, no matter the type of company or inventory you have. In its most common model, you pay for use of the service. You will only be charged for storage space and the orders that Amazon manages.
As for shipping, the cost is included in all of your rates. You also can enjoy the service at no additional charge for cases of FREE 2-day shipping with Amazon Prime and free shipping on eligible orders.
Logistics and Storage Fee
There are a series of costs that you must take into account, according to the needs and volume of your inventories:
- Inventory storage fees. This monthly charge is applied to all stored products, based on the daily average volume of inventory, measured in cubic feet in the UK and in cubic meters in the rest of Europe.
- Logistics management fees. It is a fixed fee per unit, depending on the type of product, size, and weight.
- Inventory withdrawal request. In this case, they can return or dispose of your inventory from a logistics center in exchange for a per-item sale fee.
- Prolonged storage. It is an additional charge for the total of products stored for more than 365 days in a logistics center.
- Unforeseen service. It is an additional charge for inventory that arrives without adequate preparation or labeling.
- Returns processing. Only an additional charge is applied when Amazon provides a customer with free return shipping.
How to control your Inventory
Finally, Amazon gives you several options so that you can also maintain control and management of the products in your inventory and how they flow.
You can manage the inventory performance from the Control Panel, here it ‘shows the inventory performance index rating along with the key factors that influence it’. In addition, you can see the excess, age, make corrections, and replenish the inventory.
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