6 Amazon Shipping Options for Sellers
Streamlining the shipping process is an essential aspect of every eCommerce business. Suppose you are considering being a merchant on the giant eCommerce platform Amazon. In that case, you should know what Amazon seller shipping options are accessible to fulfill your customer orders quickly.
The correct shipping method would lead to efficient inventory management and satisfied customers. Choosing the proper shipping method would impact the speed of your sales cycle, reduce your overall shipping costs, simplify inventory management, and boost customers' reliability on your product deliveries.
Amazon offers some attractive shipping options depending on the seller program you use to conduct business on the platform. Each business program entitles sellers to utilize different shipping methods. Hence, sellers should acquaint themselves with various business dimensions of Amazon to increase their sales points. If you want to familiarize yourself with various seller shipping options on Amazon, you have come to the right place. Please read this guide to learn about Amazon's all shipping options for sellers to streamline customer order fulfillment.
Overview of Amazon Shipping Options for Sellers
Amazon offers several shipping methods for sellers to choose from. The two most well-known options are Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). However, Amazon provides additional shipping options to empower sellers and meet customer demands. Here are the main Amazon shipping options sellers should understand:
1. Fulfillment by Amazon (FBA)
With FBA, Amazon handles storage, packing, shipping, and customer service. Sellers send inventory to Amazon warehouses and Amazon takes care of the rest. FBA makes products eligible for Prime and Free Shipping, increasing exposure and sales.
Pros:
- Increased sales and exposure from Prime eligibility
- Easy handling of fulfillment and returns
- Access to Prime customers
Cons:
- Additional fees for Amazon's services
- Less control over shipping process
- Possibility of inventory damage
2. Fulfillment by Merchant (FBM)
With FBM, the seller handles inventory storage, order packing and shipping. Sellers have full control but do not get Prime eligibility. FBM allows selling on Amazon at lower cost for those with existing fulfillment operations.
Pros:
- Full control over fulfillment operations
- No Amazon storage fees
- Use own shipping rates
Cons:
- No Prime eligibility
- Lower sales compared to FBA
- Increased competition for Buy Box
Other Shipping Options
Amazon offers other niche shipping programs like Seller Fulfilled Prime (SFP), Amazon Seller Central, FBA Onsite and Shipping with Amazon (SWA). Each program has specific requirements and fits certain seller needs around saving costs, maintaining control, or boosting sales. Sellers should review all options to choose the best fit.
Shipping Options for Amazon Customers
There are also some key end-customer shipping options that impact purchasing behavior and seller requirements:
- Amazon Prime Shipping - Free, fast shipping for Prime members. Highly popular so FBA enrollment critical.
- Amazon Premium Shipping - Same-day, one-day and two-day paid shipping options. Must maintain on-time delivery.
- Subscribe & Save - Subscription orders for consumables. Provides seller sales predictability.
Understanding all the Amazon shipping choices for customers and sellers is important when deciding which fulfillment approach to take.
Recommended: How To Choose The Right Shipping Solution For Your eCommerce Business?
FAQs
What is FBA?
Fulfillment by Amazon (FBA) is a shipping option where Amazon handles storage, packing, shipping, and customer service on the seller's behalf after items are sent to their warehouse.
What is FBM?
Fulfillment by Merchant (FBM) is where the seller handles all aspects of fulfillment themselves including storage, packing, shipping and returns.
What other shipping options does Amazon offer?
Other niche programs include Seller Fulfilled Prime (SFP), Amazon Seller Central, FBA Onsite and Shipping with Amazon (SWA). Each meets specific business needs around cost, control, and sales.
Why choose FBA vs FBM?
FBA provides Prime eligibility and easier fulfillment but costs more. FBM allows greater control and lower cost but doesn't provide Prime shipping benefits which can reduce sales.
What are the customer shipping options?
Key options that impact sellers are Amazon Prime Shipping, Amazon Premium Shipping, and Subscribe & Save. Understanding how customers use shipping drives seller decisions.
How do I choose the right shipping method?
Compare all the pros, cons and requirements for each program. Evaluate your fulfillment capabilities, costs, and sales objectives. Select the approach that best fits your needs.
Can I use multiple shipping methods?
Yes, sellers can utilize different approaches depending on the product. Using both FBA and FBM allows optimizing shipping method by item.