3PL for Amazon

Sell on Amazon with inventory stored at Shelfless

How does third-party logistics work when selling on Amazon?

Amazon is currently the world’s largest e-commerce company, with a massive global presence and an impressive capacity to manage and deliver billions of packages each year. The company has also developed a wide range of logistics and warehousing solutions that enable online retailers to reach customers worldwide.

When you sell through Amazon with inventory stored at our 3PL facility, you get a complete order fulfillment solution based on Amazon’s Fulfillment by Merchant (FBM) model. This means that orders are fulfilled by us instead of Amazon’s own warehouses (FBA).

Using Fulfillment by Merchant (FBM) typically involves more administration and longer lead times. To avoid this, we’ve developed an automated solution that provides full tracking from order placement to delivery, fully integrated with Amazon’s channels.

Benefits for you

• Access the world’s largest marketplace directly from your existing warehouse
• Avoid the administration and costs associated with multi-site inventory management
• Combine your Amazon.se sales with other Shelfless services

For you, the experience is just like any other platform: products are picked from the same shelves, handled through the same packing flow, and shipped with the same delivery precision.

What are Amazon FBA and Amazon FBM?

Two of Amazon’s most important logistics solutions are Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Both options help online sellers scale their business by managing inventory and product delivery. But what’s the actual difference between FBA and FBM, and what are the benefits of choosing one over the other?

Fulfillment by Amazon (FBA)

FBA is a service where Amazon stores and ships products directly to customers. Sellers send their inventory to Amazon’s warehouses, where it’s handled, packed, and shipped by Amazon. This allows sellers to focus on sales without worrying about storage or logistics.

One of the biggest advantages of FBA is that Amazon also manages customer service, returns, and refunds, making operations easier for sellers.

However, FBA requires splitting inventory between your own warehouse and Amazon’s fulfillment centers, which can be costly if you want to mirror your entire product range. FBA is generally more expensive than FBM due to Amazon’s storage and fulfillment fees. Sellers using FBM typically only pay for shipping and handling.

Fulfillment by Merchant (FBM)

FBM is another service offered by Amazon, where sellers manage and ship their own products directly to customers. This means the seller is responsible for inventory, packing, and shipping.

A key benefit of FBM is greater control over products and deliveries. From a Shelfless warehouse, you can manage your regular operations and sell the same products on Amazon.

The difference between FBA and FBM

The main difference lies in who handles inventory and fulfillment. With FBA, Amazon takes care of storage and shipping. With FBM, the seller is responsible for their own logistics.

Summary

In summary, Amazon FBM and FBA are two distinct options for online sellers looking to sell on Amazon.

- FBM is ideal for businesses that want full control over their inventory and deliveries. The advantage of FBM is that it allows sellers to manage their products and processes independently. They can also choose their own shipping methods and negotiate their own freight rates.

- FBA, on the other hand, is suited for businesses that prefer to outsource inventory management and delivery to Amazon.

It’s important for sellers to weigh the pros and cons of both FBM and FBA when deciding how to sell on Amazon. By understanding the differences between the two, sellers can make an informed decision about which option best suits their business.

As a third-party logistics provider, our company can help sellers take advantage of both FBM and FBA. We offer support with everything from inventory management to delivery, regardless of the chosen model. By outsourcing logistics to us, sellers can focus on their core business and maximize their sales on Amazon.