- Sellers who want to manage and replenish inventories themselves can utilize Fulfilled By Amazon (FBA). There are a number of advantages of using this approach. For instance, here a seller simply ships their products to Amazon and the online giant acts as a warehouse. Amazon handles the logistics, customer service (involving order support, but not product inquiries), and promotional opportunities through programs like Amazon Prime.
By the way, there are 63 million Prime members and many of them will not buy items not included in this category. Not surprisingly, products eligible for this promotion receive the kind of exposure that really drives volume. Of course, there are additional costs associated with FBA features.
- Sellers who want to avoid Amazon’s FBA fees (or to control shipping themselves) often choose the Vendor Fulfilled method. Amazon is renowned for quality control when it comes to delivery, but merchants who have particularly fragile or fungible products may opt to ship packages on their own. As you’d expect, that means you’ll handle customer service and returns by yourself.