The business processes the payment, packages the products, and prepares order for shipment.A customer purchases the product and schedules delivery.A business lists its inventory on Amazon or another eCommerce store.A business purchases inventory and stores it in a warehouse (or on-site).The typical eCommerce transaction and fulfillment process without a third-party shipping partner such as FBA looks like this: What does Fulfillment by Amazon (FBA) do?
If you are considering Amazon’s fulfillment service, here is what you need to know. To put the scope of FBA into perspective: Amazon delivered more than 2 billion items for other sellers in 2016, and active sellers using the service increased by about 70 percent that year. As a result, many online businesses are starting to turn to Fulfillment by Amazon. When most entrepreneurs start their eCommerce business, they often overlook the amount of work that goes into delivering and managing the goods after their customer places an order. Rather than exhausting internal resources building your own storage, delivery and customer service process, you can partner with FBA and focus your energy on scaling your online business. In other words, eCommerce businesses can utilize Amazon’s storage centers, delivery logistics and customer service team to increase operational efficiencies and mitigate supply chain bottlenecks. Fulfillment by Amazon (FBA) is a paid service Amazon offers businesses looking to streamline the fulfillment process of goods purchased online.
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