Amazon has set the standard regarding customers’ delivery expectations: free two-day shipping. According to a 2019 study from Retail Wire, only 7.5% of consumers said that shipping dates do not affect their purchasing decision. For everyone else, time is money. Fortunately, sellers of all sizes can take advantage of Amazon’s extensive network of facilities to ensure your products get to your customers as soon as possible: the Amazon Fulfillment Center (AFC).
What is the Amazon Fulfillment Center?
The Amazon Fulfillment Center is a network of warehouses and distribution centers owned and operated by Amazon. These centers are strategically located in different parts of the world, enabling sellers to deliver products to customers quickly and efficiently. When a seller enrolls in the Fulfillment by Amazon (FBA) program, they send their products to these warehouses, where Amazon manages the rest of the fulfillment processes, including storing, packing, and shipping.
The FBA provides sellers with increased access to Amazon’s vast customer base, including millions of Prime members. By reducing barriers around shipping times and costs, many sellers see their conversions increase after adopting the FBA program and AFC.
Why does the AFC matter?
The Amazon Fulfillment Center is critical for sellers for several reasons, including:
- Faster and more efficient shipping: By storing products in multiple locations worldwide, you can deliver products to customers sooner and with less hassle. This is especially important in today’s fast-paced online shopping environment, where customers expect their purchases to arrive quickly.
- Enhanced customer experience: As mentioned, customers expect rapid delivery and will often choose a competitor if they offer two-day shipping when you do not. Using the Amazon Fulfillment Center can help sellers meet customer expectations and provide a positive shopping experience. Happy customers are more likely to make repeat purchases and recommend the seller to others.
- Increased sales and revenue: When combined the previously-mentioned factors can empower sellers to increase their sales and revenue potential. This is especially true for small and medium-sized businesses that may not have the resources to build their distribution and logistics network without support from Amazon’s services and reputation.
- Lower fulfillment costs: By using the Amazon Fulfillment Center, sellers can save money on their fulfillment costs, as Amazon takes care of storage, packing, and shipping for a fee. This can be especially beneficial for businesses that have limited resources or do not want to invest in their own logistics network.
- Simplified inventory management: Amazon’s inventory management system allows sellers to track their products’ status in real time and make data-driven decisions to optimize their inventory levels. This can help sellers avoid stockouts and overstocking, which can lead to lost sales and wasted resources.
How can sellers use the Amazon Fulfillment Center to benefit their business?
Sellers can use the Amazon Fulfillment Center to benefit their business in several ways, including:
- Improved customer service: Amazon’s reputation for fast and reliable shipping can help sellers enhance their customer service and build brand loyalty. Using the FBA program, sellers can focus on their core business activities, such as product development and marketing, while Amazon handles the logistics.
- Access to Prime customers: Products fulfilled by Amazon are eligible for Prime shipping, which can help sellers reach a broader audience and boost sales. Prime members are also more likely to make repeat purchases and spend more money on the platform, making them an attractive customer segment for sellers.
- Simplified logistics: By using the Amazon Fulfillment Center, sellers can simplify their logistics and focus on growing their business. With Amazon’s support, sellers avoid the hassles of managing their own warehouses and distribution centers. This can help sellers save time and money, which they can reinvest in their business.
- Increased sales potential: By leveraging Amazon’s vast customer base and distribution network, sellers can increase their sales potential. This is especially true for businesses that may not have the resources to build their distribution network and reach customers worldwide.
- International expansion: Amazon has fulfillment centers in multiple countries, which can help sellers expand their business to new markets. By using the Amazon Fulfillment Center, sellers can store their products in different parts of the world, making reaching customers in those regions easier.
Maximize Your Amazon Performance
Using the AFC is a powerful way to entice new sales and delight customers. However, if it is the only service you’re utilizing, you’re leaving sales on the table. You need ads, strategy, and proper execution of your listings and campaigns to compete with today’s highly competitive landscape. Fortunately, a free Flywheel 2.0 account provides you with all this and more. Achieve more with industry-leading AI that optimizes your ads, a community of like-minded sellers and experts to support your strategies, and consistently-updated educational resources to keep you at the top of your game. Don’t wait, learn more today.