Order Fulfillment Types
What fulfillment method is right for you?
Whether you’re solely relying on Amazon or have a multi-channel selling strategy, all eCommerce businesses must choose how they would like to store their products and fulfill their orders. Choosing the right option for your brand will ultimately depend on your overall sales strategy. For example, Amazon offers options such as Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM), both providing their own advantages to sellers.
Here are some factors that will come into consideration when deciding the best fulfillment option:
- Size and weight of the product
- Control of customer experience
- Seller feedback
- Inventory turnover rate
- Expenses and fees
Kyzo 3PL partners with eCommerce retailers big and small to assist in streamlining their entire supply chain from warehouse storage, pick and pack, and shipping to all distribution and order fulfillment services required to make their brands a success.
What is Fulfillment by Amazon (FBA)?
Fulfillment by Amazon allows eCommerce sellers to ship their products to an Amazon fulfillment warehouse allowing Amazon to manage their storage and fulfill all orders that come through their platform. Like every option, FBA has its advantages and disadvantages and ultimately your individual selling requirements will determine if this is the right option for you.
Typically, FBA works for sellers whose products are small and lightweight, who don’t mind allowing Amazon to handle customer service for their brand, if their inventory has a quick turnover rate, and who don’t have logistics in place.
Meeting Fulfillment by Amazon Prep Requirements
In addition to Amazon’s fulfillment procedures and policies, Amazon requires all sellers to follow specific requirements in order to use their FBA services which can get quite cumbersome for a lot of eCommerce brands who are just looking for an easy and affordable process to sell their products in the Amazon marketplace. Some requirements include:
- FBA product restriction
- FBA inventory requirements
- FBA customer return policy
- FBA fees reimbursement policy: Weight and dimensions
- Understanding item package weight and dimensions
Kyzo can help take the guess work our of product prepping by managing all FBA prep services according to Amazon’s FBA requirements including receiving, inspecting, correctly labeling, packing, and shipping your products directly to Amazon’s warehouse.
What is Fulfillment by Merchant (FBM)?
Fulfillment by Merchant (FBM) allows sellers to sell their products through the Amazon eCommerce platform without using Amazon fulfillment services. This means online shops are responsible for all order processing including storage, shipping, and customer service. This is where 3PL companies such as Kyzo Third Party Logistics come in to play as they combine the best of both worlds, FBM and 3PL services. Additionally, sellers can integrate most other online sales channels into one easy-to-use fulfillment platform allowing online merchants greater control over their entire supply chain and fulfillment logistics making it the most optimal solution for a multi-channel selling strategy.
FBM is particularly for online retailers who want greater control over their own inventory and fulfillment operations, who want to handle their own customer experience, who tend to have oversized or heavy products, and who have a more efficient logistics operations in place to support their overall needs.
Do online sellers use both FBA and FBM?
Short answer is, yes! If a seller sells both large heavy products and small lightweight products, they may want to take advantage of both FBA and FBM in order to maximize profits and minimize expenses. An experienced 3PL logistics provider can help manage both options for you and streamline your operations for speed, efficiency and to help lower overall costs.