FBA/FBM/SFP - FULFILMENT MODELS

Depending on which platform you are selling on (Vendor vs Seller Central), there are a number of different ways in which you can fulfil your products to the end user/Amazon. 

For brands on Vendor Central (B2B), we can advise on ways to limit chargebacks/fees that Amazon may issue you, as well as advising on the best way to handle purchase orders raised by Amazon. 

Brands selling on the Seller Central platform (D2C), there are 3 main ways of fulfilling your stock to the end user - listed below:

FBA - Fulfilled by Amazon

  • Amazon takes care of your stock management - You send stock to one of their Fulfilment Centres

  • When a customer purchases a product, Amazon will pick, pack and dispatch your product

  • Potentially cheaper to run FBA model

  • Your products are ‘Prime’ eligible and you will need to create FBA shipment inventory plans

  • Save space by storing your stock at Amazon fulfilment centres 

  • Amazon monitors and handles stock inventory management – All can be reviewed on a daily basis through ‘Manage FBA Inventory’ in SC

  • FBA Coronavirus – restrictions to sending in certain shipments, lead times are longer/ delivery times can vary during peak season periods, i.e. Q4.

FBM - Fulfilled by Merchant

  • When a customer places an order you have to fulfil yourself and within a 24 hour window to hit certain metrics (late dispatch rates)

  • Save on FBA storage fees 

  • Reducing the chance of sending the wrong product to the end user as you’re fulfilling products yourself

  • Sell products that Amazon does not allow for FBA

  • No FBA shipment inventory plans needed

  • You can ensure you are always in stock of products

SFP - Seller Fulfilled Prime

  • You retain the ‘Prime’ eligible badge

  • SFP is a good model as it allows you to minimise out of stock situations by holding your inventory at your own warehouse.

  • Amazon will handle post-order customer service on your behalf, all at no additional cost to you.

  • SFP orders display free One-Day Delivery messaging to Prime customers

  • With the SFP model you have certain metrics to hit in terms of late dispatch rates and Amazon are very strict on this

CAOSS is a dedicated full-service Amazon & Ocado Agency, representing global brands. We are 100% dedicated to growing your business on the Amazon platform. Our team will advise and tailor a bespoke Amazon strategy that will enable your Amazon business to grow through Content Optimisation, Amazon Advertising, Sales Data Insights & Reporting, FBA/FBM/SFP Fulfilment Models, Global Marketplace Expansion, Consultancy and Account Management

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