Amazon FBA and PAN EU

Amazon as a 3PL

Amazon FBA is…

Just so we’re all on the same page, FBA stands for, Fulfilment By Amazon. It’s essentially a 3rd Party Logistics (3PL) solution comprised of a large network of warehouses and courier solutions, all connected to Amazon’s marketplace.

More than that, Amazon can fulfil orders from your own website, other Marketplaces and can offer these services on a global scale (more about that later).

Amazon can manage pretty much all aspects including things like Customer Service, returns, packaging, gift-wrapping etc.

If you’ve not looked into their pricing, it’s actually very competitive and may even work out cheaper than your current solution.

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Prime Enabled

Aside from the obvious logistics headache for sellers, FBA comes with the added benefit for Marketplace sellers that products delivered by Amazon get the Prime badge.

For those who’ve been living on the moon for the last few years, Prime is Amazon’s subscription service that, at the end of 2019, boasted over 150 million users. Simply having the Prime badge on your products will generally boost sales by 30-50%!

For this reason, even if you have a super-slick logistics operation of your own, you may want to also put products into FBA. Having both FBA and FBM versions of the same product can be a good strategy. Your FBA version will get the Buy Box and sell first but, should you sell out, you always have a back up version to still pick up sales.

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No CS or Refund hassles

The problem with selling stuff to the general public is that they tend to ask you things. Does this come in red? How do I return something? Does my bum look big in this? (OK, maybe not the last one, but you get the point.)

With Amazon shipped products, these questions are handled by Amazon directly so, in theory, you can just sit back and watch the sales roll in. All you need to worry about is keeping them from running out of stock and Amazon will handle the rest.

Perhaps we’re overselling a little here. Detailed questions about the product may still come to you but you get the gist.

You do need to tell Amazon what to do with returned items (destroy, return etc.) and nothing Amazon does comes for free but returns are mostly taken care of with payments and refunds are all handled by Amazon directly.

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