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Understanding Amazon fulfillment models

Understanding Amazon fulfillment models

Amazon works on various fulfillment models. You must understand these models to subscribe to the Amazon. In this article you’ll learn:

  • Amazon fulfillment models

  • Information required to subscribe to Amazon

Amazon fulfillment models

  • Fulfilled by Merchant: Fulfilled By Merchant (FBM) is when you list your products on Amazon and choose to ship products to each buyer by yourself. In other words, you’re responsible for fulfilling the orders and do not rely on Amazon for the same. While it is a rather advantageous method for products with lower margins. You need to find shipping partners who are reliable and cost-effective.

  • Fulfillment by Amazon: Fulfillment By Amazon (FBA) is a service provided by Amazon that provides storage, packaging, and shipping assistance to you. This takes the burden off and grants you more flexibility in your selling practices. The program allows you to ship your products to an Amazon fulfillment center, where products are stored in warehouses until they are sold. When an order is placed, Amazon prepares, pack, and ships the product.

  • Cloudtail model

OPEN: Model where own warehouse is used but amazon shipping is used????

Information required to subscribe to Amazon

You require the below details to subscribe to an Amazon sale channel.

  • Account name: Provide a name to your seller account.

  • Panel username and password: Login id and password of your amazon seller account.

  • Seller Id, Marketplace id, and MWS auth-token: You get these details by following below steps:

    • Login to the amazon seller account. Navigate to user permissions > visit manage your apps > Authorise new developer.

    • Enter developer name and id

    • You’ll be able to view the required details

  • AWS access key id

  • Secret key

  • Site code: Warehouse specific code to be provided by the Amazon team. This is required only in Fulfillment by Amazon model.

  • Party id: Seller account specific code to be provided by the Amazon team. This is required only in Fulfillment by Amazon model.

 

(Video of amazon portal)

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