What is Fulfillment?
Expand your online sales channels
What is Fulfillment?
Fulfillment refers to processing product delivery, returns, and exchanges for customers who have purchased products through an online stores. This includes taking orders, picking and packing products, arranging delivery, managing inventory, returns and exchanges, and other related tasks, as well as communication up to and including customer support. Some sellers use Fulfillment by Amazon (FBA), which is offered by
Amazon, while others combine in-house and third-party fulfillment options.
Amazon, while others combine in-house and third-party fulfillment options.
Characteristics of sellers that use fulfillment
- Handle large volume orders for fast shipping: When you need someone to act on your behalf to streamline high-volume order processing, customer service, delivery, etc.
- Diverse product lines: When you have diverse product lines and face challenges in inventory management and logistics optimization
- Expanding sales channels/expanding globally: Fulfillment can be deployed not only in Japan but also internationally, and sellers that expand globally can use fulfillment to facilitate overseas product delivery
- Lack of warehouse space and logistics expertise: Partners who provide fulfillment services have expertise in logistics and can provide stable services
If you're facing these challenges, using FBA will allow you to focus on other areas such as strategy and growth.
FAQ:
What is Fulfillment by Amazon (FBA)?
Fulfillment by Amazon (FBA) is a service that helps businesses grow by providing access to Amazon's logistics network. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, we handle receiving, packing, shipping, customer service, and returns for those orders. Effective, reliable ecommerce fulfillment delights customers.
Five different fulfillment models
EC customers expect reliable delivery and fast customer shipment times. Many online retailers offer Amazon Prime shipping through FBA to meet
customer expectations.
FBA is the best fulfillment option for your business if:
customer expectations.
FBA is the best fulfillment option for your business if:
- You are looking for ways to save time and grow your business
- You need an end-to-end solution for inventory storage, customer shipment, and returns
- You want to attract customers with fast, free delivery
- You want to utilize fulfillment even for only a single product
All you have to do is ship your inventory to Amazon’s warehouse. Once an order has been placed, Amazon will deliver the product to the customer.
Take advantage of Amazon's distribution network, infrastructure, world-class delivery service, returns system, and customer service.
Take advantage of Amazon's distribution network, infrastructure, world-class delivery service, returns system, and customer service.
2) Third-party fulfillment
Third-party fulfillment refers to the outsourcing of logistics operations such as product storage, picking, packing, and customer shipment to a third party for delivery of products to customers.
Advantages of third-party fulfillment include reduced logistics costs and savings in time and resources,
since the seller does not need to perform logistics operations in-house.
Many ecommerce service providers also offer fulfillment solutions for warehousing, packaging, shipping, and returns processing.
Advantages of third-party fulfillment include reduced logistics costs and savings in time and resources,
since the seller does not need to perform logistics operations in-house.
Many ecommerce service providers also offer fulfillment solutions for warehousing, packaging, shipping, and returns processing.
3) Multi-channel fulfillment
Multi-channel fulfillment refers to the centralized management and proper delivery of orders from multiple sales channels (online stores, marketplaces, etc.) through an integrated system. Centralized management of orders from multiple channels allows for efficient management of inventory, delivery, etc. It can also increase customer satisfaction and repeat business by ensuring fast and accurate delivery of the products ordered by customers.
Amazon's multi-channel fulfillment program can provide fulfillment for all sales channels.
Amazon's multi-channel fulfillment program can provide fulfillment for all sales channels.
4) In-house fulfillment
In-house fulfillment means that the seller performs a series of logistics operations in-house, from the receipt of orders to the shipment of products. Instead of outsourcing to outside logistics companies,
sellers can perform their own logistics operations, thereby reducing logistics costs, improving quality control, and improving customer service.
sellers can perform their own logistics operations, thereby reducing logistics costs, improving quality control, and improving customer service.
5) Dropshipping
How dropshipping works
Third-party dropshippers manufacture, store, ship products, and deliver to customers on behalf of sellers.
(1) Seller signs agreement with dropshipper
(2) The customer places an order
(3) Seller receives order
(4) Customer receives an order confirmation email
(5) Seller forwards the order details to the dropshipper
(6) Dropshipper will ship the product
(7) Customer receives their product
Dropshipping refers to a sales method of retail sales on the Internet in which the retailer does not store and manage its own products, but instead outsources product inventory management and shipping to a wholesaler. Specifically, a retailer sell products on their website or online marketplaces, and upon receiving an order from a customer, the wholesaler ships the product directly to the customer, allowing the retailer to sell the product without having to carry inventory.
This sales method has the advantage of allowing entrepreneurs and sole proprietors to start a business easily and with low risk, since it allows retailers to reduce the costs of purchasing products, managing inventory, and shipping.
This sales method has the advantage of allowing entrepreneurs and sole proprietors to start a business easily and with low risk, since it allows retailers to reduce the costs of purchasing products, managing inventory, and shipping.
Do Amazon Stores allow dropshipping?
Yes, you can use dropshipping for your business in Amazon Stores as long as your business meets Amazon's standards.
Please see below for the conditions.
Please see below for the conditions.
- The seller must be able to prove that he/she is the seller of the product
- The packing slip, invoice, outer packaging, and other information related to the product clearly identify the seller as the seller of the product itself
- All information indicating that you are a third party dropshipper has been removed from packing slip, invoice, and outer packaging prior to shipping the order
- You are responsible for accepting and processing customer product returns, and you must comply with other terms of the Seller Agreement and applicable Amazon policies
Click here for details on our dropshipping policy
What's the best fulfillment solution?
FBA is the way to go if you want to reduce the hassle of fulfillment, expand your business, and outsource product storage, customer shipment, customer service, and returns. Also, since the Prime badge is displayed on the product page for the FBA fulfillment service, it is possible to provide fast, free shipping to Prime members.
More about the fulfillment process
1) Shipment to distribution site
The first step is to get the products to the distribution center. Shipping sources include our own offices, warehouses, and fulfillment centers. If you're using a third-party service, make sure you pack your products using proper shipping materials and clear labels. Doing so will expedite the product receipt process and lead to smoother shipping.
2) Product storage
The next step is storing the products. For example, if you do in-house fulfillment, you can place them in an easily accessible location, such as your garage or a vacant room. Also, businesses with a lot of inventory may need a warehouse. Having enough inventory to meet customer demand is essential, especially at the turn of the season or during peak ecommerce sales times such as Cyber Monday and Prime Day.
3) Order handling and product delivery
Order handling begins from the customer, and products are shipped to the customer via FBA or a major freight forwarder based on the order details. This process includes the selection, packaging, and preparation of goods for shipment. Proper packaging is especially important during order handling. To minimize costs and avoid damage in transit, be sure to check Amazon's Prep Guidance before using an FBA warehouse.
4) Return processing and customer service
The fulfillment service provider provides customer support even after the product has been delivered to the customer. This includes handling returns and exchanges of defective products and responding to inquiries. Returns are a normal part of business and are to be expected. Whether you do your own fulfillment or use a third-party fulfillment service, you will need a process for handling returns, replenishing and disposing of defective products, and reimbursing customers.
