Amazon was founded in July 1994 by Jeff Bezos, who chose the Seattle area for its abundance of technical talent, as Microsoft was in the area. Amazon went public in May 1997. It began selling music and videos in 1998 and began international operations by acquiring online sellers of books in the UK and Germany. The following year, it began selling music, video games, consumer electronics, home improvement items, software, games, and toys. In 2002, it launched Amazon Web Services, which initially focus on providing APIs for web developers to build web applications on top of amazon’s e-commerce platform. AWS later shifted towards enterprise services with Simple Storage Service and Elastic Compute Cloud. In 2006, Amazon also launched the Fulfillment by Amazon program, which allowed individuals and small companies (called third-party sellers) to sell through amazon’s warehouses. In 2012 amazon, bought Kiva Systems to automate its inventory management business. It purchases Whole Foods Market in 2017 on February 2, 2021, amazon announced that Jeff Bezos would step down as CEO to become executive chair of amazon’s board in Q3 of 2021. Andy Jassy, perniciously CEO of AWS, began amazon CEO. The first for this company was Cabadra, then it was given a new name Amazon. It was named after the Amazon River, the world’s largest river.
What do you know about Amazon FBA?
Amazon FBA stands for Fulfillment by Amazon, launched in 2006. It handles the storage, packing, and selling of products.
How do FBA works?
Amazon sellers register with amazon’s FBA program then they their product listings and amazon. After that, they prepare their product and ship them to an amazon warehouse. From that point, amazon handles all the routine tasks associated with fulfilling the orders including customer service and return. Amazon charges FBA sellers for both storage and fulfillment. Storage fees are charged to sellers monthly and are calculated based on the amount of space your inventory occupies in fulfillment centers. There are no charges for shipping out right. Shipping is considered part of amazon fulfillment cost and rolled into FBA fees.
How we will describe Amazon FBM / MFN?
Merchant fulfilled network (MFN) is amazon’s terminology for Fulfilled by Merchant (FBM). It refers to a method of selling where sellers list products in amazon stores, but tackle all storage, shipping, and customer support independently.
How Amazon FBM is used?
After setting up a seller account on amazon and creating lists for your products you are ready to sell on amazon. With Fulfilled by Merchant, it’s your responsibility to handle the fulfillment process from start to finish. In addition to packing and shipping, you are responsible for handling returns and providing customer service it’s also your responsibility to find our own shipping and fulfillment providers such as FedEx or USPS.
What are the advantages of FBA and FBM?
Amazon FBA provides greater sales potential with improved visibility. Customer service, returns, and shipping are processed by amazon FBA. It provides prime eligibility and also the opportunity of buy box advantages. It also gives the facility of convenient inventory storage. FBM provides more control over inventory and greater control over the business. There is the ability to fulfill offline and online orders from the same house. It gives more control over the packing.
Benefits of Amazon:
Amazon is worldwide selling and purchasing platform, it has marketplaces in countries like France, the United States, the United Kingdom, Canada, Spain, and others. This has a greater efficiency such as every action a seller takes on the platform is monitored and any violence from the rules is strictly prohibited. It provides A+ brand content. It is easy to use and has no capacity limit. It uses logistics and fulfillment centers to get closer to the customers. It has a way to scale quickly (almost 300 million customers in 180 countries). Amazon gives businesses the chance to expand their offering into different markets. There is instant migration, great reliability, and easy site conversation. The promotion and scalability are flexible. Amazon AWS is a very improving service of amazon and it provides end to end approach.
