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FBA – Fulfillment by Amazon

Definition updated on November 2023

What is FBA (Fulfillment by Amazon) and how does it streamline e-commerce logistics?

A service provided by Amazon where sellers, including sneaker resellers, send their products to Amazon's fulfillment centers. Once the products are listed and sold on the Amazon platform, Amazon takes responsibility for storing, packing, and shipping the items to the buyers. In addition, Amazon handles customer service inquiries and returns for these orders. This allows sellers to scale their business without worrying about the logistics of order fulfillment, giving them more time to focus on product sourcing and listing. For sneaker resellers, FBA can be a game-changer. Sneaker drops can lead to a rapid influx of orders, and managing the logistics of shipping multiple pairs of shoes in a timely manner can be daunting. With FBA, resellers can ensure quick delivery, as many products are eligible for Amazon Prime's two-day shipping. Additionally, using FBA can boost the visibility of listings, as many customers filter their searches to show only Prime-eligible items. However, it's essential for resellers to factor in FBA fees, which include storage and fulfillment costs. They must also ensure that their sneakers meet Amazon's packaging and prep requirements before sending them to the fulfillment center. In essence, FBA offers sneaker resellers the advantage of leveraging Amazon's vast logistical network, but it's crucial to understand the associated costs and requirements.

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