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How does Amazon shipping work for sellers?

Diana RodriguezDiana Rodriguez asked 8 months ago
1 Answers
Dani Avitz Staff answered 8 months ago

Shipping on Amazon can be handled in two different ways: Fulfillment by Amazon (FBA, Amazon handles all logistics) or fulfillment by the merchant (FBM, you the seller handle all logistics).

FBA is the ideal choice for most eCommerce businesses. Customers receive the benefit of trustworthy Amazon shipping, while the seller can offload the cost of warehousing to some extent. Keep in mind, Amazon does charge long-term storage fees on any products that sit in their warehouse for more than 181 days. FBA is an attractive option because it simplifies the entire fulfillment process. However, it does have higher fees.

Finally, Amazon fees come from three main sources:

  • Fulfillment fees that depend on the size and weight of the shipment.
  • Warehousing fees that change depending on how long your items will stay before being sold
  • Referral fees, which are naturally part of selling on Amazon. Different seller account types use different fees.

FBM sellers are expected to handle packing, shipping, and returns on their own. When they receive an order, they are responsible for packing it, ensuring the product is fit for shipping, creating their own shipping labels, and shipping the products. Sellers are held accountable if they fail to ship the product within the timeline they provide. FBM sellers need to be cautious and provide accurate shipping estimates and timelines for any products they are selling.

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