There are several selling programs that Amazon offers its sellers. A seller has the option to: list products on Amazon’s website and ship it from its own location; have Amazon handle their logistics and sell product through other avenues; or have Amazon handle the logistics and sell product on the Amazon website; this is known as Fulfilled By Amazon (FBA). Under the FBA agreement, the company can send new or used products to Amazon’s fulfillment centers. Under this program, Amazon handles all of their logistical needs and fulfills orders from its various warehouses. Through the FBA selling program, a company can list and sell unlimited products on Amazon’s website for $39.99 a month plus additional selling and fulfillment fees. These selling and fulfillment fees average 26% of gross sales.
As part of this program, the company is able to upload listings singularly or in bulk to Amazon’s seller central prior to shipment, so that the e-commerce facility can register the stock being transported to their facility. The company has the choice of using their carrier or using the low cost shipping provided by Amazon. Amazon receives the goods, scans them into their system and assigns them a position in one or more of their other warehouses. A comprehensive tracking platform is used to monitor the goods from receipt to sale and provide a report that is available to the company at any time through an online interface. Typically the company’s FBA product listings are presented with Fulfillment by Amazon logos so that customers are aware that packing, delivery, customer service and possible returns are all managed by Amazon. Each company is able to easily manage their product selling price on the Amazon website throughout the selling process.
Amazon provides a settle-up every week. This settle up provides the company with a report that details product sales, revenues, returns, and Amazon fees and commissions. Inventory details are provided through the online interface. The net amount due to each company is deposited directly in their bank account.