Shipping strategy 101
If you are an Amazon seller, you can choose from three major shipping models. In this blog, we explain each one and compare the pros and cons of each.
Shipping through Amazon
FBA means Fulfilled by Amazon, you sell an item and Amazon ships it. The seller sends bulk products to Amazon’s fulfilment centers for them to pick, pack, and ship when sold. Despite the benefits of 'Prime', the costs of FBA are often too high or complex for eCommerce retailers. Understanding Amazon’s fees can be difficult and they are constantly changing their pricing structure, so sellers must stay up to date with these announcements.
Ship it yourself
FBM means 'Fulfilled by Merchant' where the seller lists products on Amazon but handles storage and fulfilment. You sell it, you ship it. This can reduce costs but does not offer flexibility or access to the latest technology.
Ship with a fulfilment provider
3PL means 'logistics by a third party' such as fulfilmentcrowd. The seller lists products on channels including Amazon and eBay but a specialist partner stores and ships to customers. This allows entrepreneurs to focus on increasing sales with predictable costs and margins. The 3PL business model is built on efficiency, so you can expect the highest service levels and automation as standard.
Keep business simple and use 3PL to increase your eCommerce sales. For an quick instant estimate, click here or send us an email at email@example.com
by Liz Churm on 22/07/2019