If retailers select the “Shipping by Amazon” option, Amazon takes over the logistics and storage of the items. This means that the goods are stored in an Amazon logistics center, packed with a customer order and shipped to the customer. To use this shipping option, the seller does not have to be a vendor. The sale can still be made via the vendor and does not have to be processed directly via Amazon. This is shown in the following example.
Another advantage for sellers is that products that are offered by several retailers are more likely to end up in the shopping cart field than items that are shipped without this option.
How exactly does Amazon shipping work?
- The selected products must be listed with the option “Shipping by Amazon”.
- All these items must be sent to the Amazon logistics center.
- On Amazon, products with this option are marked with the Prime logo.
- The items ordered by customers are packed and shipped by Amazon.
What are the costs for the retailer with FBA?
For “Shipping by Amazon”, the seller incurs two variable fees: the shipping fee and the storage fees. The shipping fees are made up of various components, such as the type of product, the storage location, the dimensions and the weight. The storage fees depend on the space occupied in the warehouse (per cubic meter per month).
A special feature is that products sold on Amazon.com for at least 350 euros can be delivered in standard size. To take advantage of this benefit, the retailer must participate in the Central Europe program. This means that the goods are stored in Amazon logistics centers in Germany, Poland and the Czech Republic. Those who do not participate in this program pay a shipping fee of 0.50 euros at Amazon.com.
What do retailers need to consider when using the Amazon service?
With the “Shipping by Amazon” option, the stock must always be sufficiently replenished, just as with own shipping. Products that are not available cannot be sold.
How do customers benefit from the “Shipping by Amazon” option?
For buyers, shipping their ordered goods through Amazon offers a number of advantages, including
- For non-Prime members, these items are added to the order value. Delivery charges are waived for orders over 29 euros.
- The expected delivery date can be easily tracked under “My account”.
- The Amazon customer service is available for questions about the order.
- Items can be returned directly to Amazon without contacting the seller.
- Customers with a Prime membership benefit from fast delivery of these Amazon products.