Choosing the right Amazon fulfillment option is crucial for your D2C business. Here’s a quick guide to help you understand EasyShip, Fulfillment by Amazon (FBA), and Multi-Channel Fulfillment (MCF), along with key insights and considerations.
EasyShip
Definition:
Store products at your location; Amazon handles pick-up, packing, and delivery.
Pros:
- Control over inventory and packaging: You have direct control over how your products are stored and packed.
- Cost-effective: Lower fees compared to other options, making it budget-friendly.
- Flexible for multiple platforms: Suitable for orders from Amazon and other platforms.
Cons:
- Storage requirements: Requires adequate storage space at your own facility.
- Increased workload: More manual work for packing and managing inventory.
- Scaling challenges: Handling a larger volume of orders can be difficult.
Key Considerations:
- Ensure you have sufficient storage space.
- Develop efficient packing and shipping processes.
- Regularly evaluate cost savings versus the workload.
Learn More: Amazon EasyShip
Fulfillment by Amazon (FBA)
Definition:
Send products to Amazon’s warehouses; Amazon handles storage, packing, shipping, and customer service.
Pros:
- Access to Prime customers: Products are eligible for Prime, increasing sales potential.
- Reduced workload: Amazon handles most logistics, reducing your workload.
- Scalable operations: Easily scale your business with Amazon’s infrastructure.
Cons:
- Higher fees: Significant costs can impact profit margins.
- Limited control: Less direct control over inventory once it’s in Amazon’s warehouses.
- Storage fees: Potential for long-term storage fees if products don’t sell quickly.
Key Considerations:
- Monitor and manage fees closely.
- Ensure fast product turnover to avoid additional storage costs.
- Maintain strict quality checks before sending products to Amazon.
Learn More: Amazon FBA
Multi-Channel Fulfillment (MCF)
Definition:
Use Amazon’s logistics network for orders from various platforms, not just Amazon.
Pros:
- Centralized fulfillment: Manage logistics for multiple sales channels from one place.
- Reliable and fast shipping: Leverage Amazon’s efficient shipping network.
- Improved customer satisfaction: Faster delivery times can enhance customer experience.
Cons:
- Branding issues: Amazon-branded packaging may not align with your brand.
- High fees: Especially for orders from non-Amazon platforms.
- Less control over stock: Similar to FBA, less direct control over inventory.
Key Considerations:
- Maintain brand identity despite Amazon’s packaging.
- Assess the cost-effectiveness of using Amazon’s logistics for non-Amazon orders.
- Track inventory levels closely to avoid stockouts.
Learn More: Amazon MCF
Decision-Making Flowchart
Making the Right Choice
- What matters most to you?
- Control over your products: Choose EasyShip if you want to maintain control over inventory and packaging.
- Reducing your workload: Choose FBA if you want Amazon to handle most logistics.
- Selling on multiple platforms: Choose MCF for centralized management of orders from various sales channels.
- Consider Your Business Growth:
- If you expect to grow quickly, FBA might be the best option for scalability.
- If maintaining control is crucial, EasyShip could be more suitable initially.
- Evaluate Costs:
- Compare fees and savings regularly for each option.
- Factor in long-term costs like storage fees for FBA.
- Think About Customer Experience:
- Faster shipping options can enhance customer satisfaction.
- Branding consistency matters, especially with MCF.
