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02fulfillment by Amazon Presentation
02fulfillment by Amazon Presentation
Fulfillment By Amazon
Fulfillment By Amazon
Time
• You can only list, sell, pack, and ship so many
orders in a day. What would you do if you all
of a sudden had 100, 200, even 500 orders in
a day?
• Do you have the time to pick, pack, label and
ship all these orders?
Two Limitations of All Online Sellers
Space
• You can only store so much stuff!
• Can you store enough product to handle this
many orders?
• Do you have enough storage space to store
enough product to ship 100, 200, even 500
orders in a day?
Solution: Fulfillment By Amazon
FBA removes both of these barriers!
• Jan-Sept: $0.45/ft³
• Oct-Dec: $0.60/ft³
• First 60 days free
• Amazon calculates the volume of your items
to the 1/100 of a cubic foot.
FBA Storage Fees Example
Box 1 – 6”x4”x3”
• Calculated at 0.10 cubic feet (by Amazon)
• Jan - Sept storage fee: $0.45 x 0.10 = $0.05/month
• Oct – Dec storage fee: $0.60 x 0.10 = $0.06/month
• Yearly storage fees: $0.63
Box 2 – 8”x8”x4”
• Calculated at 0.18 cubic feet (by Amazon)
• Jan - Sept storage fee: $0.45 x 0.18 = $0.08/month
• Oct – Dec storage fee: $0.60 x 0.18 = $0.11/month
• Yearly storage fees: $1.05
Box 3 - 11”x8”x4”
• Calculated at 0.27 cubic feet (by Amazon)
• Jan - Sept storage fee: $0.45 x 0.27 = $0.12/month
• Oct – Dec storage fee: $0.60 x 0.27 = $0.16/month
• Yearly storage fees: $1.56
Manage Your FBA Storage Fees
• You don’t have to send all of your inventory to
FBA at one time.
• Manage your FBA storage fees by replenishing
your FBA inventory as your products sell.
• Maintain a 60-day supply and you won’t pay
any FBA storage fees.
How to Leverage FBA
OTHER SALES CHANNELS
• With FBA, we can ship 2-Day Air for less than
the cost of UPS Ground.
• We can ship to Hawaii & Alaska for the same
low rates
• We can spend our time sourcing products,
playing with our kids, or going on vacation!
Multi-Channel Fulfillment
FBA is not just for Amazon sales. You can use
FBA to outsource the storage of your items as
well the entire order process (picking, packing,
labeling, & shipping) all for less than what you
are paying now.
It’s called Amazon
Multi-Channel Fulfillment
Amazon Multi-Channel Fulfillment
• One way to describe Amazon Multi-Channel
Fulfillment is to compare it to dropshipping;
but make no mistake, it is not dropshipping.
• Multi-Channel Fulfillment is using Amazon’s
FBA service to fulfill your own orders with
your own inventory for sales from other
online channels (example: eBay)
Amazon Multi-Channel Fulfillment
• With dropshipping, the products are not yours
until you make a sale and submit the order.
• With FBA, the products that you are shipping
are YOUR PRODUCTS. You control them and
you set the price.
FBA Fees (Multi-Channel Fulfillment)
D. Pick & Pack Fee
E. Shipping Method Fee
F. Shipping Weight Fee
Additional Fees:
No Commission!
Inbound Shipping Fee
$0.12 - $0.25 per pound
I ship 50 lb. boxes to Whitestown, Indiana for $13
I ship 50 lb. boxes to Irving, TX for $6
Here are the steps to create a Multi-Channel
Fulfillment order
Prices shown for Standard (Ground), 2-Day Air,
and Overnight shipping options
Select the Item For Fulfillment
Enter Address Information
Standard Shipping for $6.85
2-Day Air Shipping for $10.15
Overnight Shipping for $20.00
Multi-Channel Fulfillment Fees;
eBay Order
Not an Equal Comparison
• We making $17.30 - $22.60 more on each
transaction.
• 35.1% - 45.2% higher margins.
• Business is a game of margins, not volume.
• Remember to count the cost of your time and
efforts.
Multi-Channel Fulfillment is Powerful!
• Not only do we make more money and earn
higher margins on each transaction, but we do
less work and our customers get their
products 2-3 times faster.
• We can ship this way to Hawaii & Alaska!
FBA Orders Ship Same Day
• We can place FBA orders as late as 4:30 PM
(maybe even later) and they will ship the
same day.
• Can your customers order at 4:30 PM and get
their item delivered THE NEXT DAY (even
Saturday) anywhere in the US for $20?
• Can you do this from Starbucks?
This Isn't Just for eBay Sales!
You can sell on any channel that you want to!
With Multi-Channel Fulfillment, you can ship
orders from your own website, Amazon, eBay,
half.com, even Craigslist!
You get the same competitive shipping rates
and world class fulfillment experience.
Outsource Your Warehouse!
Do you really need a warehouse?
Do you really need employees to pick, pack,
and ship orders for you everyday?
Outsource the whole thing. Run an empire
from home (or on vacation.)
FBA in Practice
• Imagine the possibilities of never having to
put your online business on hold.
• You can go out of town or on vacation
anytime and you never have to stop selling.
• You can place FBA orders on the beach or
from Europe!
• Less work, higher margins, happier customers.
Advanced FBA
The possibilities are fairly endless with FBA.
Here are some other things that you can do with
Fulfillment By Amazon.
Direct FBA Shipping
Get your vendors and manufacturers to send
your items directly to your FBA account.
Just find items that can be sold on Amazon.
(Some items don't even need FBA labels)
FBA labels can be emailed, even shipped to
vendors for labeling prior to shipping.
Change your ship-from address and still use
Amazon's UPS rates. Email UPS labels to your
suppliers.
International FBA
FBA is available in the US, UK, Germany,
France, and Japan and you can send inventory
to each of them.
You can open seller accounts in each country
and send your inventory to it's best market.
Ship yourself, or have your suppliers ship.
What Else Can You Do?
The possibilities are endless.
FBA is still in its infancy.
How will you be using FBA this year?
Next year?
Phew! Questions?