AMAZON SELLERS
FULFILLMENT GUIDE

The go-to resource guide for Amazon Sellers to navigate complex fulfillment strategies, minimize costs and maximize sales

Selling on the New Amazon

Selling on Amazon gets more complicated every day. Warehousing and fulfillment have become especially challenging for sellers these days due to ever-changing program regulations, eligibility requirements, and FBA storage limits.

 

To avoid costly service disruptions, sellers need a multi-pronged fulfillment strategy that bridges the gap between Amazon and their other sales channels for better control and more seamless operations. 

Secrets to Success: Amazon Fulfillment

Merchants who are ready to take control of their growth take a proactive approach to supply chain optimization. Their decisions will be based on granular details and sku-level performance, and they’ll actually see that they can control demand from the bottom-up.

 

Study your shipping trends, and ask yourself, “What are my customers buying?” and “Where am I shipping most often?” This is a leading indicator to identify which products consumers are most attracted to. Using this simple approach will allow you to start focusing on the SKU’s and customers that are driving the volume.

 

An Amazon Seller that’s ready to control their costs and create demand will have the right SKUs in the right quantity in the most optimal location before a consumer makes a purchase. This enables the fast shipping customers expect without eroding profitability with costly solutions like next-day air.

Amazon FBA, or Fulfillment by Amazon, is what many sellers use when getting started and growing their business on the marketplace. The program allows third party sellers to stock inventory alongside Amazon’s products. Amazon handles all fulfillment, shipping and customer interactions on the seller’s behalf, for a % fee on each sale.

 

Up until recently, this program has been widely regarded as the best option for many sellers due to convenience, cost and scale. However, COVID-19 disruptions made it difficult for many sellers when their hands were tied as unfulfilled orders piled up and complaints rolled in. Then, new restrictions on storage limits caused sellers’ storage capacity to drop up to 20%-50%, putting even more stress on those relying on FBA for all order distribution heading into the holidays.

 

Many Amazon Sellers who rely on FBA for all fulfillment are rethinking that strategy, incorporating FBM or SFP through a third party to gain more direct control over inventory, distribution and customer relationships. Amazon’s warehouse capacity limits, paired with extended dock-to-stock times have become a competitive weakness with sellers having little control over the ultimate outcome.

To avoid service disruptions and simplify multi-channel order management, savvy Amazon Sellers have adopted a multi-threaded fulfillment strategy, building their own network for distribution.

 

Rather than relying solely on FBA, sellers are partnering with third party fulfillment partners for supplemental support on warehousing and distribution. By having a backup fulfillment method in place, sellers are able to control distribution and avoid operational disruptions.

 

Choose a fulfillment partner with a fully integrated WMS that streamlines the inbounding process. A well-documented and timely ASN submitted digitally through a WMS will ensure a faster dock-to-stock time so you can start selling faster.

Complete Guide to Amazon Fulfillment

Learn about Amazon’s three fulfillment options for third-party sellers: FBA (Fulfillment by Amazon), FBM (Fulfillment by Merchant), and SFP (Seller-Fulfilled Prime) and how to work around FBA storage limits.

ESSENTIAL RESOURCES FOR
AMAZON SELLER FULFILLMENT

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FBA Fee Increases for 2022

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How to Sell on Amazon without FBA

The convenience of Fulfillment by Amazon (FBA) has made it possible for virtually anyone to sell on Amazon. However, sellers looking to scale their business may be feeling the limitations of FBA on their brand. Here’s how anyone can sell on Amazon without FBA.

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Frequently Asked Questions

Peak shipping season is a result of the holiday shopping season. Peak season has always been a major seasonal sales driver for most merchants, but since the recent ecommerce boom, peak fulfillment and shipping have been a top concern for merchants looking to acquire new customers during the holiday season.
Peak shipping season begins at different times for all merchants, but according to Ware2Go’s merchant survey data, 30% of merchants began to see peak season sales as early as September this year. Peak shipping season ends after holiday returns have been made — typically by late January or early February. For ecommerce holiday sales, merchants should expect return rates of up to 40%.
To prepare for peak season, merchants should order inventory according to their demand forecasting models and supplier lead times, determine their marketing budget and build an advertising plan accordingly, and strategically position their inventory to achieve the best possible shipping speeds without sacrificing margins. (For more detailed tips, download our peak planning resource guide.)
Outsourcing peak shipping season to a 4PL or on-demand fulfillment partner is a great way to quickly scale up fulfillment operations to meet seasonal spikes in demand. In a 2020 survey, 44% of merchants indicated that outsourcing fulfillment simplified their operations. Additionally, outsourcing peak shipping can help SMB’s overcome the challenge of peak season carrier pickup caps.