If you're an inventor or entrepreneur who has a lot of product but not enough time, space or money to deal with warehousing and distribution challenges, help could be a mouse-click away.
Fulfillment By Amazon, from Amazon.com, offers you a way to outsource your warehouse and distribution needs. Leveraging its years and position as a leader in shipping goods ordered online, Amazon gives larger retailers and entrepreneurs alike a way to remove the highly complicated, high-overhead task of shipping products to customers. Your inventory and orders are processed using Amazon.com's system. When a customer places an order, Amazon picks, packs and ships it. No more inventory management software. No more worrying about how you're going to get all those items packed before the pickup time. No more hassles with shipping companies.
Joe Walowski, a senior project manager who oversees Fulfillment By Amazon, talked about the service.
HOW HAS THIS PART OF AMAZON'S BUSINESS CHANGED SINCE ITS INCEPTION?
Amazon began offering its fulfillment expertise to partner merchants in 2000 with Target and Toys R Us. About 18 months ago, we were able to take this expertise and expose it to smaller merchants in a standardized, selfservice manner, which is the essence of FBA. Since our launch last year, FBA has continued adding features and functionality. Some examples include fulfillment for non-Amazon orders, export for media items and direct integration - all based on feedback from our customers.
IS THERE ANY LIMIT TO THE AMOUNT OF GOODS AMAZON WILL STOCK FOR SOMEONE USING FBA?
Currently, there is no limit. Merchants are free to send inventory, and our systems automatically route it to the appropriate fulfillment centers.
THE COMPANY SEEMED TO HIT A BUMP WITH REGARD TO HOW IT HANDLED ITS FULFILLMENT WITH TOYS R US. THE REPORTS WERE THAT THE GIANT TOY RETAILER DIDN'T LIKE THE FACT AMAZON SHIPPED TOYS FROM COMPETITORS. WHAT DID AMAZON LEARN FROM THAT EXPERIENCE?
We are very centered on our customers, and customers like the wide selection that Amazon offers. We know we can't go wrong giving great selection and great prices to customers.
FBA SHIPS GOODS IN AMAZON-LABELED BOXES. FOR SOME, THAT COULD CREATE BRAND CONFUSION. WHAT, IF ANYTHING, S THE COMPANY DOING TO ADDRESS THIS ISSUE?
Many merchants appreciate the brand association with Amazon, but we do recognize that some would like more options, and we're looking into how we might provide those options.
WAREHOUSING SEEMS LIKE A HIGH OVERHEAD BUSINESS. VERY BRICKS-AND-MORTAR. INVENTORY STACKING AND TRACKING. LARGE PHYSICAL FOOTPRINT. GUYS DRIVING FORKLIFTS - THE WORKS. IS FBA MAXED OUT IN TERMS OF INFRASTRUCTURE OR IS AMAZON GOING TO SCALE IT UP?
We certainly aren't maxed out, but we are always expanding and refining our network. Despite our rapid growth over many years, we have always been able to stay ahead of our growth and offer great fulfi llment to our customers.
SERVING AS A DISTRIBUTION HUB FOR DISPARATE BUSINESSES SEEMS LIKE COMPLICATED WORK. WHAT'S THE ERROR RATE - WRONG STUFF SHIPPED TO A CUSTOMER, BROKEN MERCHANDISE, ETC. - AND HOW DOES AMAZON CORRECT THOSE MISTAKES, OR BETTER YET, MAKE SURE THEY DON'T HAPPEN IN THE FIRST PLACE?
Amazon handles many millions of items each year. It's a skill we've honed over many years now. Mistakes do occasionally happen, but they are by far the exceptions. When errors do happen, we are committed to satisfying the customer - and we extend this to our Fulfillment By Amazon items.
IT TAKES A FEW CLICKS, BUT WE FINALLY FOUND THE CATEGORIES OF WHAT YOU WILL AND WHAT WON'T SHIP. WE UNDERSTAND NO GUNS, TOBACCO OR ALCOHOL. YET WE NOTICED YOU EXCLUDE TOYS, GAMES, ADULT TOYS (WE ASSUME MARITAL AIDS), AND GIFT CARDS AND GIFT CERTIFICATES. WHY DO YOU EXCLUDE THOSE, YET PERMIT ELECTRONICS, TOOLS, SOFTWARE AND HARDWARE?
We have chosen as a company not to handle pornography and adult toys. Gift cards and gift certificates have certain legal restrictions (under the law they are forms of currencies) that are beyond the scope of Fulfillment By Amazon.
