So, you’ve set up your Amazon shop — the next thing to think about is how you’re going to deliver your products to your customers.

 

What is Amazon Shipping?

The Amazon shipping options may seem endless, but the top three are:

• Fulfilment by Amazon (FBA).
• Seller Fulfilled Prime.
• Fulfilment by Merchant (FBM).

Which one you choose will depend on the impact your fulfilment method will have on your business. Ask yourself:

• Do you have time to pick, pack, and ship all your orders in-house?
• How would the Fulfilment by Amazon fees affect your overheads?
• Do you need an Amazon Prime badge to build your brand’s credibility?
• Is delivery speed a key performance indicator for your customers?

 

Amazon Seller Shipping Options

 

 

Let’s look at the Amazon shipping options in more detail.

 

Amazon Drop Shipping

Otherwise known as Fulfilment by Amazon (FBA), this is where you ship your product to an Amazon fulfilment warehouse from where they’ll be sent out to your customers. When you get an order in your Amazon marketplace, Amazon will pick, pack, and ship the order on your behalf.

 

What Are The Benefits of FBA?

If you’re selling high volume, high margin products, and don’t have the space to store your inventory, FBA is the Amazon shipping model for you. It will help simplify your processes and free up time spent on fulfilment. You can also get that coveted Prime badge on qualifying products.

 

What Are The Cons of FBA?

• Amazon takes a 10-15% fee on every FBA transaction depending on the product.
• Profit margins will be lower.
• Must factor in storage fees and any penalties that may be imposed into ongoing costs.
• FBA shipping fees can be costly.

 

Seller Fulfilled Prime (SFP)

 

 

Launched in 2015, SFP gives selected sellers the ability to ship from their own warehouses or third-party fulfilment centres. You’ll be able to display the Prime badge on your listings and customers will get the fast, free Amazon shipping they expect. Having your products in your own warehouse will also give you more control over your inventory than with FBA.

If you think SFP is for you, you’ll need to meet some criteria before enrolling:

• You must be an experienced, high-volume seller.
• Your performance metrics and order fulfilment history must be consistently high.
• You’ll need to pass a trial period to earn your Prime badge.
• You’ll need to continue to meet Amazon’s strict customer service, returns, and refunds standards.

 

What Are The Benefits of SFP?

• You’ll be able to display the Prime badge on your listings.
• You’ll keep greater control over your fulfilment and customer service.
• SFP can be more cost-effective than FBA.
• You’ll be able to use your own shipping options for some orders as long as you meet their delivery timelines.

 

What Are The Cons of SFP?

• Qualifying criteria is rigorous.
• You must agree with Amazon's returns policy.
• You must use Amazon Shipping Services for 99% of orders.

 

Fulfilment by Merchant (FBM)

 

 

If you choose to go with FBM, you’ll send out the products you list in your Amazon shop directly to your customers. You’ll manage the picking, packing, and booking the shipping with parcel delivery couriers.

While FBM won’t be right for everyone, it allows you to save money on costly fees associated with FBA — and will allow you to save costs on shipping by choosing your own couriers.

Get a quote and see how much Parcel2Go can save you on your Amazon shipping.

 

What Are The Benefits of FBM?

• FBM is great for sellers who have a range of exclusive products with a low turnaround.
• Costs are low so it’s good if you have low profit margins.
• Shipping costs are lower than those available through Amazon shipping.

 

What Are The Cons of FBM?

• You will have responsibility for all the picking, packing, and shipping.
• You’ll be the first point of contact for all customer service enquiries — and your service will need to exceed that of Amazon’s to boost your rating.
• You won’t be able to display the Prime logo.

 

Let Smart Send Help With Your Amazon shipping

 

 

With Parcel2Go, there’s a way you can take FBM to the next level and get those 5-star customer ratings rolling in.

Completely free to use, Smart Send will help you book your parcel deliveries in record time, giving you access to some of the most trusted couriers at the UK’s cheapest prices.

 

Top Benefits of Smart Send For Amazon Sellers

• Give your customers a range of Amazon express delivery options that will beat FBA.
• Boost your seller rating with speedy bookings.
• Save your preferred couriers to deliver outstanding service every time you send.

See more on why Smart Send is a great alternative to FBA!

See our Amazon Business Gude for more advice.