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The Amazing Success of Amazon Fulfilment Centres
The staggering success of Amazon Fulfillment Centers has many reasons. One of the key influencing factors have always been Amazon’s focus on running their FBA inventory management like a Swiss watch and excelling in Amazon’s trusted customer service.
- a detailed inventory performance dashboard in Seller Central allowed for maintaining sound inventory health and mitigation of unplanned services fees and risks associated with excess inventory during rapid order fulfilment increase;
- ultimately, all Amazon sellers are able to monitor detailed information on stranded inventory, safe and secure transportation, storage fees (including long-term storage fees via their advanced Inventory Age Tools), returns processing fees as well as each individual Amazon Fulfillment Center performance.
- The Inventory Performance Index (IPI) opened new ways to manage excess inventory, optimize for online store’s growth (i.e. how much inventory each FBA business should plan for or estimate fulfillment fees);
- the overall selling fees were optimised thanks to tight fulfilment centres operation that focused on lowering Amazon pick and pack fees, faster delivery and rapidly shipping orders, as well as FBA storage fees reduction via unparalleled FBA inventory management service;
- whereas returns processing fees (charged by most eCommerce and retailers at the time) were overridden by Amazon’s push to provide customer service that put customer satisfaction above all else (even if that meant taking a loss in the short term) – resulting in free return processing and free return shipping for all customers.
It is also worth mentioning that Amazon and FBA Customer Support prioritised the Prime Customers, offering benefits that, at the time, were never heard of before in the e-commerce space.
Achieve optimum efficiency with Amazon pick and pack services alternative!
The Growing Need For An Independent Amazon Fulfillment Center Alternatives
So what went wrong?
With such incredible growth and demand to keep the service competitive while rapidly expanding business internationally, Amazon found itself struggling with fulfilling orders consistently at such a massive scale.
Because free storage is never an option and the inventory levels have to keep up with growing customer inquiries, a substantial strain was put on Amazon (and especially the Amazon Fulfillment Centers).
To keep the key influencing factors that made Amazon the giant it is today, the focus was again put on the rapid expansion of fulfilment centres around the world. More bulk, as well as lightweight FBA inventory, meant more space needed for storage and warehousing. But not just that. Amazon pick and pack services had to be in place with proper preparation and shipping capabilities.
While Amazon went on assembling their fulfillment centers network across the world at a rapid scale, the FBA order demand was still too high for the company to keep up. The FBA Fees increased for all Amazon FBA Sellers and many individual and specialised online retailers started experiencing difficulty in running their operations through dedicated Amazon Fulfillment Centers.
The Inception of Amazon Fulfillment by Merchant (FBM)
Fulfillment By Merchant (FBM) is an alternative to Fulfillment By Amazon (FBA) in which the Amazon seller runs an in-house fulfilment or outsources the operation to an independent Order fulfilment centre. This means that the Amazon FBM sellers handle their own inventory storage, order processing, create shipping plans, and provide dispatch and delivery services to Amazon Prime customers. The FBM sellers are required to adhere to Amazon pick and pack processes and rigorous dispatch timelines.
Therefore, the FBM sellers can move away from the FBA fees and optimise for better bottom lines, faster delivery and improve Amazon pick and pack operation that ultimately results in happier Amazon customers.
FBM by The Storage Place: Amazon Pick, Pack and Ship
The Amazon FBM Process
- Preparing and Labelling
Comply with Amazon Seller regulations
Whether you’re selling in bulk to Amazon via Amazon Vendor, using Fulfilment by Amazon, or selling the same product range through a 3rd party (using dashboards similar to Seller Central Help), we will pick and pack all of your Amazon orders, print Amazon shipment labels and prepare your associated active listing to meet specific Amazon picking and packaging requirements.
- Booking and Admin
Organise and optimise pick and pack fees
Many of our existing FBM customers can lower inventory storage fees and regular Amazon pick and pack fees (i.e. the “Order Pack Fee”) due to TSP’s ability for expert organisation and spcial-case admin handling processes.
All orders placed through Amazon FBA create labels that include all critical information necessary to send goods to your customers. We also keep all sensitive data secured and GDPR-compliant.
- Inspecting and Dispatching
Avoid penalties & delays
Give yourself peace of mind that Amazon will not reject your shipment – we monitor detailed information about your inventory and ensure that they are fit for a quick pick, pack and dispatch in accordance with the Amazon Prime specification. taking into consideration Amazon’s restrictions.
We will dispatch the consignment ensuring a smooth integration into your Amazon depot, avoiding any delays or penalties*.
* Terms & conditions apply, see Service Level Agreement.
Amazon Pick and Pack Pricing
When it comes to Amazon picking prices for FBA orders they may seem confusing. When you visit the Seller Central Dashboard, you may locate information about the pick and pack fee or overage fees, but it’s difficult to wrap your head around all the necessary pricing to establish how much you will be charged when your inventory arrives.
If you have eligible FBA products or you need help with meeting the FBA badge criteria we can help. The Storage Place can also estimate fees for the FBA services in no time and thanks to cost-effective and simple FBA pricing you can quickly
Outsource Amazon Preparation Services
Avoid delays and unnecessary fees
Are you looking for Amazon Preparation Services? Our team of experts will take care of everything for you – whether you need to distribute your stock from your online store or to prepare stock for sending to your Amazon depot.