Amazon Fulfilments Models
| FBA | FBM | Seller Fulfillment | Easy Ship | EDI/Smart Connect | |
|---|---|---|---|---|---|
| Definition | Stocks or Inventory is managed by the Amazon warehouses Amazon is responsible for picking, packing, delivering, providing customer service and managing returns. All these are fulfilled from the same locations. | Seller handles inventory storage, packing & shipping products are being caged in the seller’s warehouses. The seller is responsible for any late, missing, or damaged product deliveries and are fulfilled from the sellers locations. | Stocks/units are being caged in the seller’s own warehouses and are fulfilled from the sellers locations. Once the orders are received, the products are to be packed in Amazon-branded packaging material. The seller flex program can be chosen for heavy products that incur additional storage costs in the FBA warehouse. | A delivery service for the Amazon Indian sellers. The order are collected by the Amazon Logistic Delivery and delivered to the customers. Customers are also allowed to track the shipping and the estimated delivery dates. Also made simple payment method called Pay on Delivery ( Cash On Delivery). | Stocks/units are stored in sellers warehouse where stock can be used for fulfilled other Master Production Schedule (MPS) orders as well. |
| Set Up | You can visit the My Services page by navigating to Settings > Account Info > My Service and then register for Fulfilment by Amazon (FBA). Need to select the country. 1 – Select the states and the fulfilment centre. 2 – Enter the following tax details: PAN (Permanent Account Number) Legal Name and Business Address GST Certificate (required if selling in taxable categories only) 3 – Register fulfilment centre as an Additional Place of Business (APoB). Apply online to register Amazon fulfilment centre as an additional place of business (APoB). You can also take help from a Chartered Accountant (CA) or a tax consultant. 4 – Fill up self-declaration form (for tax exempt categories). Fill up self-declaration form (for tax exempt categories). APoB acknowledgement (taxable categories) / Self declaration (tax-exempt categories). Upload image signature by scanning a copy of your signature on a white paper. Specify applicable Product Tax Code (PTC) and Harmonised System of Nomenclature (HSN) code if applicable for your listings. | ||||
| Benefits | You Sell Your Product, Amazon does the Shipping You can store your items in Amazon fulfillment centers, and we will deal with picking, packing, transporting, and overseeing returns. Get & Grow Your Business with Amazon Prime Tag With FBA, you will get the Prime identification for your items which expands the visibility, discoverability, and guarantees your clients of quicker conveyance. Win the Buy Box to Make Your Sales Easier! As FBA items convey Amazon’s guarantee of quicker and effective conveyance, you have higher possibilities winning the Buy Box on Amazon Frontpage | Scheduling your order pickup as per your convenient time of the day Delivery associates collects your orders Check the status of your order thorugh mobile tracking online Pincodes accepted for remote areas Cash accepted on delivery | |||
| How it works? | Step 1: Choose the Amazon fulfilment centres in which you want to store your products Step 2: Share your Business Details Step 3: Add Amazon fulfilment centres which were selected earlier, in your GST certificate Step 4: Send your products to your chosen Amazon fulfilment centre | Step 1: List your Products or Items on Amazon Seller Platform Step 2: Warehouse products in your own Amazon fulfillment center Step 3: Ship the orders out in time | Step 1: Register as a vendor or eCommerce seller and list your products Step 2: Store your products in your warehouse and provide your address to the delivery associates Step 3: Get orders for your items Step 4: Amazon does the delivery to the customers | ||
| Warehousing Partner | Stores all the inventory in Amazon Fulfilment locations | Stores all the inventory in Amazon Fulfilment locations | Stores all the inventory in Sellers locations, where seller has to keep dedicated inventory for seller flex. | Stores all the inventory in Sellers locations | |
| Order fulfillment | Generating picklists or packlists Order are fulfilled by trained professional at Amazon Warehouse | Amazon allows seller to process the orders, where courier details are fetched from Amazon along with shipping label and invoice. Packages are packed and handed over to Amazon courier for shipping | |||
| Advantages | Seller is pined with the Prime badge & products become eligible for unlimited free 1-day & 2-day delivery options. Seller need not worry about warehouse space, since inventory is stored at Amazon’s fulfillment centers. Less manpower, since Amazon handles most operations. Better delivery timelines | Seller has better control over inventory and the overall order fulfillment process. Lesser fee since most functions are performed by the seller. Lower storage cost. More control over packaging | Increased Sales – All products earn the prime badge. Customers will be able to see accurate delivery times and will pay for prime one-day or two-day shipping. Better control over inventory – No need to store inventory at Amazon warehouse to earn the prime badge. No monthly Storage Fees: Since the inventory is stored at his own warehouse, the seller saves a lot on the storage fee. No warehouse storage limits: Amazon warehouses have storage limits assigned for every seller. This inhibits sales during holiday seasons. No removal, pick & warehouse shipping fee. | “- No Shipping Charges & No Courier Negotiation – Shipping Picked up from your Warehouse Location – Customise Packaging as per customer requirements – Shipping across India & Worldwide” | |
| Disadvantages | Amazon handles most of the fulfillment process, the seller has to pay a fee. Moreover, this program is not ideal for low-cost items. Amazon has a set of requirements & guidelines for products coming into the warehouse for FBA. The seller has lesser control over the inventory. | Increased responsibility – Responsibility of managing inventory, packaging & shipping may be overwhelming for some sellers. Overhead costs – Even though FBM sellers won’t pay fulfillment and storage fees, they have to bear overhead expenses, including their own storage, fulfillment, and shipment costs. Missing out on Amazon Prime members – Over 50% of Amazon shoppers are Prime, and 1-day/2-day free shipping with Prime is often a purchase criterion. Without being a Prime seller, many of the potential customers are missed out who may have purchased the product if it were Prime. Besides, enrolling for Seller-Fulfilled Prime is a sizable task. | Increased manpower – Functions such as filing claims, checking returns, in-bounding inventory & removing inventory from flex require additional manpower. Additional IT cost – The seller needs to have label printers, UPS inverter, etc. This leads to additional expenses. Technology fees – Seller Flex program requires the seller to pay ‘Technology fees’ at Rs. 10/order. | Handling cost rising due to different rates of shipping charges – There is no fixed courier service for your daily product shipping in all the location wise – Tireness of managing inventory on your own – Once, product delivered, Amazon will send your amount after 1 week by deducting taxes which will affect your flow of managing – Payment options are very limited – Insuarance does not cover your loss of lost shipping | |
| Browntape Facilitates | Orders – Order is synchronized and fetches all the orders i.e. Upcoming, New, RT, Shipped, Delivered, Returned etc. Inventory – Restricted warehouse, so Inventory push not available since the inventory is managed physically Inventory levels can only be watched over, as browntape fetches the stock status for these warehouse Entire product listings can be fetched in Browntape. Price – Browntape allows to synchronize selling price on Amazon within a limit set of 50% Warehouse – Supports multiple warehouses |
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