What You Need to Know About Amazon Fulfillment Centers for FBA Sellers

Amazon's fulfillment center services can revolutionize your Amazon FBA business. Sellers benefit from hands-off order fulfillment, fast shipping, and increased product visibility.

Isiah Kurz

October 30, 2023

Are you an Amazon FBA seller trying to figure out the best way to handle the fulfillment of your products? Look no further than Amazon's own fulfillment center services.

Amazon fulfillment centers allow sellers to store their products in Amazon warehouses—and when a customer orders a seller's product, Amazon picks, packs, and ships it out.

This offers several advantages to sellers and consumers. For instance, sellers enjoy less hands-on responsibility when it comes to fulfilling customer orders. Not to mention the added competitive advantage of offering fast shipping when compared to sellers that don’t take advantage of FBA. Consumers, on the other, benefit from quick deliveries and, if they are Prime members, lower shipping costs.

Let’s dive into what an Amazon fulfillment center is, what benefits it offers to FBA sellers, and how its fee structure works.

The Basics and Benefits of Amazon FBA

An Amazon fulfillment center is a massive warehouse that stores products for Amazon sellers. When you send your products to an Amazon warehouse, they will be available for Amazon to pick, pack, and ship out to customers. This process is known as "Fulfillment by Amazon" and can be a real lifesaver for FBA sellers.

FBA increases your products' chances of getting the coveted Amazon Prime badge, which is known to drive more sales since Amazon Prime members receive free and fast shipping.

FBA sellers also benefit from increased visibility on Amazon. When you enroll in the FBA program, your products become eligible for Amazon's two-day shipping (and in some cases, one-day or even same-day shipping), which brings additional benefits to your products' visibility on Amazon.

Plus, FBA sellers have access to Amazon's world-class customer service. If customers have any issues with their FBA orders, Amazon will handle all customer service needs, saving the FBA seller time and improving the customer experience.

What About Amazon FBA Fees?

Amazon FBA fees are pretty straightforward. Sellers pay for storage, fulfillment, and other associated fees. The storage fees depend on the size and weight of each product in your inventory and the duration of storage. Similarly, the fulfillment fee varies based on the product type, packaging requirements, and the customer's geographical location.

Other associated fees include labeling, removal, and optional services fees, such as prep services. Amazon provides a handy online tool to calculate your fees and profit margins, so you can estimate your potential expenses and revenue before committing to the program.

A Junglytics data analytics dashboard showing a comparison of Amazon fulfillment fees to the previous quarter.

Shipping Plans

Now, let's talk about the actual process of using an Amazon fulfillment center. Once you enroll in the FBA program, you'll create shipping plans, which help Amazon know which products to expect and when. You'll then ship your products to a designated Amazon warehouse, where they'll be received and processed. Amazon will then store your products in their warehouse and make them available for sale through the Amazon marketplace.

Whenever a customer orders one of your products, Amazon will retrieve it from its warehouse, pack it, and ship it out to the customer in the most effective and efficient way possible.

Unlock Your Selling Potential with Amazon FBA

Amazon FBA is an incredibly beneficial program for sellers who want to streamline their fulfillment process and increase the visibility and exposure of their products on Amazon. With Amazon's network of fulfillment centers and its vast online marketplace, FBA sellers benefit from Amazon's world-class customer service, quick and free shipping options, and increased visibility and credibility on the site.

While there are some associated fees with the FBA program, the benefits outweigh the costs for most sellers.

Amazon data analytics tools, like Junglytics, help sellers keep an eye on your FBA inventory and Amazon fees. Among our more than 40 trackable metrics, Amazon FBA sellers can track:

FBA Inventory
Total Amazon Fees
Amazon Referral Fees
Amazon Fulfillment Fees
Amazon Fee %
Cost of Goods Sold
And so much more.

A Junglytics data analytics dashboard showing FBA inventory for a few different product lines.

Better yet, FBA sellers can break down key insights into the product level, variation level, or regional level in just a few clicks. This makes it easier to understand mid-level insights in real-time or during a specific period.

Check out what Junglytics customizable data analytics for Amazon FBA sellers can do for you by visiting our live demo.

ABOUT THE AUTHOR

Isiah Kurz

Isiah is an experienced content writer with more than a decade of experience in journalism, public relations, and marketing.

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