What does shipping by Amazon mean?
If merchants choose the “Shipping by Amazon” option, the logistics and storage of the items will be handled by Amazon. This means that the goods are stored in an Amazon logistics center, packaged with a customer order and sent to the customer. In order to use this option for shipping, the seller does not have to be a vendor. The sale can still be done through the vendor and does not have to be done through Amazon. This can be seen in the following example.
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Another advantage for sellers is that products offered by more than one retailer are more likely to end up in the shopping cart field than items shipped without this option.
How exactly does shipping by Amazon work?
The selected products must be listed with the option “Shipping by Amazon”.
All these items must be sent to the Amazon Logistics Center.
At Amazon, products with this option will be marked with the Prime logo.
The items ordered by customers are packaged and shipped by Amazon.
What costs are incurred by FBA for the merchant?
For “Shipping by Amazon”, there are two variable fees for the seller, the shipping fee and storage fees. The shipping fees are made up of different components, such as the type of product, storage location, dimensions and weight. The storage fees depend on the space you take in the warehouse (per cubic meter per month).
A noteworthy feature is that products sold on Amazon.com for at least 350 euros can be delivered in standard size. In order to be able to use this advantage, the dealer must participate in the program Central Europe. This means that the goods are stored in Amazon logistics centres in Germany, Poland and the Czech Republic. If you do not participate in this program, you pay a shipping fee of 0.50 Euro at Amazon.com.
What else do merchants need to be aware of when using the Amazon service?
With the “Shipping by Amazon” option, the stock must always be sufficiently replenished, just like with your own shipping. Products that are not available cannot be sold.
How do customers benefit from the “Shipping by Amazon” option?
For buyers, there are some advantages to shipping their ordered goods through Amazon, such as:
For non-prime members, these items will be added to the order value. From an order value of 29 Euro, the delivery charges do not apply.
The expected delivery date can be easily tracked under “My Account”.
The Amazon customer service is thus available to the buyer with questions regarding the order.
Items can be sent directly back to Amazon without contacting the seller.
Customers who have a prime membership can take advantage of the fast delivery of these Amazon products.