When it comes to shipping products, sellers often use dropshipping or Amazon FBA.
Dropshipping allows the seller to send the order details directly to the supplier. The vendor then takes care of the packaging and shipping.
If you want to sell your products through Amazon, then Amazon FBA is the best option. Amazon FBA stands for Fulfilment by Amazon. All you have to do is take down the order. Amazon does the rest.
The FBA service is a convenient way for sellers to ship their products. When you set up your product page, you can choose from two options.
Either you can take care of shipping yourself or select FBA. Once you choose FBA, Amazon takes the responsibility to deliver your product. It is always better to let Amazon take care of the shipping.
The brand is all about on-time delivery. If there is a delay, Amazon takes responsibility. Your order history will be much better than the rest.
Another great thing about using Amazon FBA is that all your Prime Products reach on time. So how exactly does FBA work?
Two methods of sending items to Amazon FBA
There are two ways to get your shipment to the warehouse – The old way and the new way.
Both methods of shipping have their perks. The old way has a proven record of success. Amazon launched the new process recently. It is still in the beta phase.
However, sellers have already begun using the new FBA method. They find it easier than using the old method. Some sellers have faced some technical difficulties. Amazon has resolved these issues.
The brand is still working on perfecting the new FBA method. By using the methods, you will be able to understand which one is better.
According to the new method, you can get your shipment set up in a few simple steps. Let’s take a look at both ways. If you are a wholesaler or a vendor, then you will benefit from both ways.
The new way only allows sellers to send packaged items. Unpacked products are not being accepted at the moment.
The Old Method – A Step-By-Step Guide
Let’s look at the step-by-step guide of the old FBA method.
Step 1: The first step is to log into your seller account. Every seller has to open an account that allows them to sell. It is also known as Seller Central.
Step 2: Once you’ve logged in, click on ‘Inventory.’ When you click on that, you will see a drop-down menu. Select the ‘Manage Inventory’ option.
Step 3: When you click Manage Inventory, you will see a list of all your products. The next thing you want to do is go to the extreme right corner of the product. There will be a button called ‘Edit.’ You need to click that button. Once you click on Edit, you will see another drop-down menu. Now select the ‘Send/Replenish Inventory’ option.
Step 4: On clicking the Send/replenish Inventory button, you will be asked to add the ‘Ship from Address.’ If you have already added this address, then go to the next step. If you haven’t done that, you will have to fill in the address. The address should be of the place where your product is currently stored. For example, you can add your home address or your office address. Some sellers keep their inventory at a storage facility. In that case, you have to add the address of the storage facility.
Step 5: The next step is to choose between ‘Individual Products’ or ‘Case-Packed Products.’ If you are selling 7 different products, then you need to choose Individual Products. The SKU of each product will be different. When the SKU of all the products is different, you need to select the Individual Products option. Even if there are multiple products, you have to choose the Individual Products option. When there is a product with a single SKU, you should select ‘Case Packed Products.’ For example, suppose a shipment of 10 essential oils is being delivered to a client. You will have to choose the Case Packed Product.
Step 6: In the same section, you will have the option of selecting the ‘Units per case. You will also have to add the number of cases. Once you fill in the details, click continue.
Step 7: The next step is to prep the products. You can select the product from the drop-down menu. Amazon will tell you whether your product needs to be prepped or not. The seller will have to add it to a polybag or bubble wrap the product. If you don’t wish to prepare it yourself, you can choose Amazon Prep. Once your product is prepped, click on continue.
Step 8: Now, you need to label your products. You can either label it yourself or ask Amazon to label it for you. You can label the product by using a label printer. Amazon also gives you the option to label the product. They will charge you a small fee to do that. If you want Amazon to label your products, then select ‘Who Labels?’. Then select ‘Amazon’ and click on ‘Apply to All.’
Step 9: The next step is to click ‘Print Labels for this page. Please select all the labels you need and print them. You will need to add your manufacturer’s barcode or Amazon’s barcode. Make sure you are using one that is relevant to your product. You have to print out the labels and stick them to your packages. Amazon charges a $0.30 fee to label the products. If you are a private label, then you will have to select the ‘Merchant’ option.
Step 10: Now that your packages are ready, you can start adding the shipment address. You can ship the packages to different warehouses or one warehouse. That will depend on the locations you want to send your packages to. Amazon keeps the setting on ‘Distributed Inventory Placement’ by default. You can change this setting and get all your parcels delivered to one warehouse.
Step 11: In this step, you will select the shipping service. You will have to add the dimension, weight, and other details of the items. Then select the ‘Shipping Charges’ and ‘Shipping Labels.’
Step 12: The next step is to add the barcodes to all the boxes. Make sure all the barcodes are visible. One code will be for UPS, and the other code will be for Amazon. Now your shipment is ready.
Step 13: The last step is to set up a UPS pickup. You can also drop the shipment yourself.
Now, let’s look at the Pros and Cons of the old method.
Pros
- When you use Amazon’s FBA, your products are eligible for the Prime service. Millions of customers use the Prime service, and your products will be visible to them.
- The old method helps you save time. You do not have to spend time haggling with the shipping service.
- By using this method, you can be assured that Amazon will deliver the products on time.
- Amazon flawlessly handles customer queries. Sellers don’t have to worry about returns and customer queries.
- Amazon’s FBA assures quick delivery. Your customers will receive the products in no time. Amazon is quite particular about delivering packages on time.
- The old method allows you to customize your shipping order as per your needs. It gives you much more flexibility.
Cons
- The cost of using FBA can be high. In the long term, you might end up spending more money. You might see a decline in your profit margins.
- Sellers have experienced an increase in return rates. Due to Amazon’s Open Return Policy, there is a tremendous rise in returns.
- You will have to pay money for storage. To store your items in an Amazon warehouse, you will have to shell out some extra cash. Thus, increasing the overall cost of shipping through FBA.
- Amazon requires you to prep all the products in a particular way. The process might take more time than you think.
The New Method – A Step-By-Step Guide
Now let’s look at the new Fulfillment by Amazon method. It is also known as ‘Send to Amazon.’
Most of the steps will be the same as the old method. However, there will be other options that you will have to select; the Send/Replenish Inventory option.
Step 1: The first step is to log into the seller account.
Step 2: Next, you will have to go to the Send/Replenish Inventory option. You will need to select the ‘Ship to Amazon’ option. Sellers can also click the ‘Continue to Send to Amazon.’ The button is located in the right-hand corner.
Step 3: You will have to create a new packaging template for this option. The seller needs to add information about the SKU. All the packaging, labeling, and prepping details need to be added.
Step 4: The next step is to confirm the charges and press continue.
Step 5: Now, create new labels for your products. Make sure both the UPS and Amazon barcodes are visible.
Step 6: You can drop off the shipment at the nearest UPS center. Sellers can also schedule a pickup.
Your shipment is now ready! Amazon will take it from here and make sure all your products are delivered on time.
Pros
- The new FBA method has fewer steps than the original method. Sellers can save a lot of time.
- Sellers can get their products shipped quickly. Amazon assures fast and on-time delivery.
- Your products will be eligible for the Prime Badge.
- By using Amazon’s FBA, you will be able to win the Amazon Buy Box.
Cons
- The new method is still in its Beta stage. That means there are still tweaks that will need to be made.
- Sellers can only use the new way for Case Packaged products. You cannot use it for Individual products.
Which Method Should I choose?
Amazon has invested billions in making sure customers get their products on time.
However, keeping up with Amazon’s demands can be difficult. If your item is not delivered on time, your order history score can go down.
If that happens too many times, Amazon can ban your account. The ban can be temporary or permanent. That is why it is better to go for Amazon FBA.
With Fulfillment by Amazon, you will be assured on-time delivery. If Amazon is unable to process the delivery on time, they will let the customer know. The brand always keeps a buffer day in the order tracking record.
So, the consumers can see precisely where their product is. Following the item is exceptionally thrilling for the customer. It also ensures that the delays are limited.
The original method is much longer, but it has many perks. For one, you can customize all the details. Second, it is a tried and tested way. Third, sellers have been using it for years.
Amazon has recently launched a new way of shipping. They are still running tests and seeing how well it fares. You might face several unforeseen technical difficulties. It is better to wait it out till Amazon tests out all the features of this method.
If you want to try out this method, then start with a few packages. Don’t send out 10 units at a time. Instead, you could ship a single product and see how it goes. As you become comfortable, you can start shipping more and more units.
The best thing to do is try both methods. You could then analyze which one works better for you. Based on the results, you can stick to a particular way.
Conclusion
Amazon FBA helps sellers save time. Amazon also handles all customer queries and returns.
As a result, a seller can focus on scaling the business. Packaging and delivering can be a hassle. Sellers spend most of their time resolving these issues. Instead of doing that, you can just let Amazon handle everything.
They are good at what they do. Amazon is the world’s largest e-commerce brand. They are professionals who focus majorly on making their customers happy.
Sellers can also receive a Prime Badge, meaning that Amazon will instantly show your products to VIP customers. These customers shop regularly using Amazon.
So, your items will receive massive visibility. There are endless benefits to using Amazon FBA’s shipping methods. Once you get used to the process, it is a piece of cake. So, if you are a seller contemplating whether to use it or not, we say go for it. You can use either of the methods. The old way is long but effective.
At the same time, you can work on expanding your business. By following the step-by-step process, you can learn how to use Amazon FBA in no time! So, follow this FBA shipment guide, and place your shipment order.
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