Amazon offers sellers several ways of working, each with different features that suit different business goals and sales strategies. The main models are FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). And if you have your own brand (Private Label), Amazon also provides unique opportunities to promote it. Let’s take a look at how these models work, how you can reduce your burden when using a prep center, and how to choose the right model for the way your business works.
What is FBA?
FBA (Fulfillment by Amazon) is a model where Amazon takes care of the entire process of storing, packing, and shipping items. Under FBA, the seller sends their products to Amazon’s warehouse and the platform takes care of all fulfillment tasks, including returns processing and customer service.
The benefits of FBA are:
1. High level of service – Amazon provides fast delivery, which makes items more attractive to customers.
2. Access to Amazon Prime – items stored in Amazon warehouses are given Prime status, which increases their visibility and customer confidence.
3. Customer Service and Returns – Amazon handles all customer service and returns processing on its own, which saves time for the seller.
Cons of FBA:
– High storage and fulfillment fees, especially for low-margin or bulky items.
– Less control over the product – the seller has less control over packaging, delivery and interaction with the buyer.
How a prep center helps:
- Professional product preparation – the prep center prepares items for shipment to Amazon warehouses according to strict FBA requirements, including labeling, packaging, and quality checks.
- Storage savings – the prep center allows you to temporarily store items at a lower cost than Amazon warehouses, reducing costs for the seller.
- Flexibility in inventory management – a prep center can be useful for storing products during peak periods while Amazon warehouses are limited, or if there are slow-moving items.
FBA is suitable for those who sell small, popular items with high turnover rates and want to take advantage of Amazon logistics to improve customer service. Want to start selling using this model? Send your items to US Prep centers today for processing and they’ll be leaving for Amazon by tomorrow.
