Amazon distribution (fulfillment) is the process of picking, packing, and shipping products ordered on Amazon.com. Amazon is known for cheap same-day shipping and free two-day shipping for Prime customers. Merchants that sell through Amazon’s platform must conform to Amazon’s standards for packing and shipping products.
Amazon fulfillment options
Amazon fulfillment falls into three categories: self-fulfillment, fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), and third-party fulfillment.
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1. Amazon Fulfilled by Merchant
Amazon Fulfilled by Merchant (FBM) is when the merchant directly completes the e-commerce fulfillment process. This is typically only used by small businesses, such as those working out of a house with little customer service. Self-fulfillment is very time-consuming, especially as volume increases, but requires little to no upfront investment. This method is the most ideal for merchants who sell a few high-profit products a month.
2. Fulfilled by Amazon
Fulfillment by Amazon (FBA) is when a merchant ships its products directly to Amazon warehouses across the country for fulfillment. FBA products can sell more quicker, but it’s the most expensive order fulfillment option. Different fees such as long-term storage fees, warehousing fees, and fulfillment fees add up quickly for FBA sellers. Merchants lose control over the process and are not allowed to use their own packaging or documentation, as FBA packages are shipped in Amazon boxes, appearing that they are sold by Amazon.
3. Seller Fulfield Prime
Seller Fulfilled Prime (SFP) is an order fulfillment program offered through Amazon that enables a third-party seller to ship Prime orders directly to customers in 2 days — in accordance with the Amazon Seller Fulfilled Prime requirements — from their own warehouse. Enrolling in the SFP program can help a seller’s listings through increased discoverability and by displaying the Prime badge.
4. Third-party fulfillment
Third-party fulfillment is when a logistics provider, like Co-Packaging Solutions picks, packs, and ships orders on behalf of the merchant who is selling items on Amazon. Many merchants chose a third-party fulfillment service because of the great value.
Co-Packaging Solutions, for example, has hundreds of thousands of square feet in warehouse space in various warehouses across the country. Because fulfillment logistics providers work with large volumes, carrying out hundreds of thousands of orders a month, they negotiate large discounts with carriers for the best shipping rates, as well as packaging and overall logistics costs.
A third-party logistics provider can reduce fulfillment and shipping costs without the merchant losing control over the process.
Why choose Co-Packaging Solutions for Amazon fulfillment?
Co-Packaging Solutions offers Fulfillment by Merchant (FBM) and if you utilize Amazon distribution today, we highly recommend diversifying your fulfillment options (e.g., use both FBA and FBM) to maximize sales.
While Co-Packaging Solutions cannot fulfill Amazon Prime orders, Co-Packaging Solutions does offer fulfillment services for Amazon FBM orders, including:
Free packing supplies
Co-Packaging Solutions customers who don’t want to use custom branded packages can take advantage of their free plain brown boxes, as well as free packing supplies, including tape, inserts, stickers, and more.
Custom Branded packaging
With Co-Packaging Solutions, you can use your own packaging. Unboxing an order is central to the customer and brand experience, so Co-Packaging Solutions makes it easy. Their name will never appear on your packages, and your customers don’t even have to know they exist.
Discounted shipping rates
Co-Packaging Solutions has negotiated reduced shipping rates with the four major U.S. carriers and automatically passes those savings onto you. Co-Packaging Solutions will save you the most money possible for each order that gets fulfilled.
Co-Packaging Solutions is trusted by thousands of merchants across the country. Whether you’re selling through Amazon or another online e-commerce site, Co-Packaging Solutions is the partner of choice.