Understanding the ins and outs of Amazon FBA, or Fulfillment by Amazon, is critical to growing your business in the marketplace. Successful use of this program unlocks two-day shipping, speeds up the fulfillment process, frees up your time, and can even save you money.
One of the biggest challenges is understanding the nuances and language of the service. There are many distinct parts and acronyms that can leave even the savviest of marketers in the dark. Fortunately, we’ve broken down the most common terms that you’ll come across and created this handy Amazon FBA dictionary from Amazon FBA: Is It Worth It? Check it out below!
The Amazon FBA Dictionary
The following are the most common acronyms, key terms, and other details that cause confusion for marketers regarding Amazon FBA.
3PL stands for Third-Party Logistics. It refers to companies that handle storage and order fulfillment for ecommerce businesses. They are third-party because they are neither the seller nor the marketplace.
FBA is an acronym for Fulfillment by Amazon. This is Amazon’s program that handles storage and shipping for sellers.
FBM is an acronym for Fulfillment by Marchant. This refers to the option for an Amazon seller to handle fulfillment outside of Amazon either on their own or through a 3PL.
Amazon calls its product storage and shipping facilities fulfillment centers.
A channel is a platform on which goods are sold, such as Amazon or Walmart.com. A multi-channel approach means a seller is utilizing more than one of these channels.
Order fulfillment refers to everything that happens with a product from the moment of sale onward, including picking, packing, shipping, and returns.
Packing refers to placing purchased items in appropriate packaging with shipping labels so the items can be shipped to their customer destination.
Picking refers to locating and obtaining purchased products from their storage spot within a warehouse so that they can be packed.
Amazon’s customer loyalty program is called Amazon Prime. Customers who participate in this program preferentially choose items that are eligible for Prime, which is easiest to access for products that are fulfilled via FBA.
A big part of ecommerce order fulfillment is the returns process which needs to be as easy for shoppers as receiving their orders is.
Shipping refers to the stage in a product journey when it travels from a warehouse to the customer who has purchased it.
Everything You Should Know about Amazon FBA
If you want to maximize your results with Fulfillment by Amazon, check out our free ebook! This guide expands upon our Amazon FBA dictionary to reveal the most important statistics, best practices, and more, to ensure you get the most out of this vital service. Check it out today and bring your business to the next level!