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Amazon

Fulfilment Options on Amazon

5 Mar 2020

How you fulfil orders to shoppers on Amazon is an important business decision and one that will impact margin, customer service, demand, Buy Box ownership, international availability, Prime eligibility, storage and inventory management. Getting this right is a critical part of retail readiness to ensure product lines are best setup for success and to cope with potentially large demand while reducing erosion on costs.

Prime – brands selling via Vendor will automatically gain Prime status. Sellers leveraging FBA (Fulfilled by Amazon) also gain the Prime badge on listings because Amazon is confident of meeting fast delivery promises. For those wishing to leverage direct fulfilment from merchant own network, SFP (Seller Fulfilled Prime) can be acquired so long as you meet Amazon’s fast delivery parameters. There are additional requirements such as having to use DPD or Royal Mail, at time of writing, as the approved couriers. Although we have seen sellers deliver great results without the Prime badge we advise that, if possible, it’s worth striving to secure because it is a sales enhancer, especially as Prime membership grows and Amazon allows shoppers to filter for Prime-only items.

Buy Box – many new sellers on Amazon are unaware that the Detail Page is owned by Amazon, even if you have spent time curating content and imagery, and any 3rd party seller can attach to the page if they have the same product. As such, the Buy Box is critical to sales. Any item that carries the promise of fast delivery or Prime is more likely to win the Buy Box.

International Expansion – Amazon offers an extremely attractive opportunity to reach international customers and extend potential demand to 100’s millions of consumers. Sellers and Brands can leverage EFN (European Fulfilment Network) or Pan-EU FBA to instantly access all EU locales . EFN will allow Sellers to fulfil orders from any EU locale so just having to ship into one fulfilment centre. Pan-EU FBA can be used to ship into local centres and fulfil locally.

Customer Support – Sellers own the communications with the buyer including delivery issues and returns should they wish to fulfil directly. It’s imperative that you factor in having someone to liaise with customer queries and respond to customers within 24hrs.

Below is a table of top-line key features of fulfilment options on Amazon and what they mean for Brands and Sellers. Drafting the most effective strategy is important to ensure you reach the maximum number of potential shoppers in the most efficient manner. Our team is on hand to advise how best to do this.


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