How to Build an Amazon Distribution Network for Third-Party Sellers
The Amazon distribution network may not always meet the needs of third-party sellers. This guide contains tips for merchants looking to build their own Amazon
Ware2Go (a UPS Company) has an SFP network that supports Saturday fulfillment and an FBM network that offers 1- to 2-day delivery nationwide. Grow your brand on Amazon (and everywhere) with guaranteed 99% on-time fulfillment, preferred UPS pickups, and dedicated Amazon support.
A network of 14 SFP warehouses supports Saturday fulfillment with preferred UPS pickups. 99% on-time fulfillment and a dedicated SFP support team enable you to grow your Amazon business on your terms.
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Amazon is imposing a 5% fuel and inflation surcharge on FBA fees and has said it’s “unclear” whether the surcharge will go up or down in the future. Amazon sellers have absorbed increased freight costs and inflated manufacturing costs. You need a fulfillment partner that won’t tack on unexpected surcharges.
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Ware2Go’s prices have stayed constant in spite of record inflation and rising fuel prices. We offer reliable 1 and 2-day ground delivery without the fuel surcharge.
FBA has changed the way it determines inventory maximums three times since the start of the pandemic, leaving Amazon sellers scrambling to keep their most popular items in stock. Stockouts on Amazon damage performance across all listings on Amazon due to:
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Missed sales opportunities: 48% of shoppers encountered an out-of-stock notification while holiday shopping. 38% of those shoppers said they simply purchased a similar product from an alternate vendor.
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Loss of seller authority: Every moment that your listing is down, your sales velocity drops. In turn, SEO rankings drop and paid advertising performance declines. It can be difficult to ramp sales back up once the listing is active again.
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The solution? Diversify your Amazon fulfillment strategy to include Fulfillment by Merchant (FBM) as an FBA backup that can be activated when an FBA SKU goes out of stock.
Having a backup fulfillment method gives sellers the confidence to scale up their sales and marketing efforts without the risk of stockouts.
FBA can sometimes take months to receive inbound shipments, leading to stockouts and ultimately, lost sales.
Again, the solution is to diversify your strategy in order to de-risk.
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All of your best-selling ASIN’s should have a secondary Fulfilled by Merchant (FBM) SKU. This way, when FBA inbound processing is delayed, you can activate your FBM SKU and avoid any down time that could hurt your seller authority.
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Ware2Go fulfills all orders dropped before 3pm on the same day so you can set a 0-day default handling time on your FBM listings. This allows you to make Prime-like delivery promises without the Prime badge. Offering fast delivery makes your product more likely to land the “featured offer” spot and improves your search rankings and ad performance.Â
Learn about Amazon’s three fulfillment options for third-party sellers: FBA (Fulfillment by Amazon), FBM (Fulfillment by Merchant), and SFP (Seller-Fulfilled Prime) and how to work around FBA storage limits.
The Amazon distribution network may not always meet the needs of third-party sellers. This guide contains tips for merchants looking to build their own Amazon
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Ware2Go has a Fulfillment by Merchant (FBM) and a Seller Fulfilled Prime (SFP) offering. Our FBM offering can support nationwide 1- to 2-day delivery to drive more sales on Amazon with or without the Prime badge. Our SFP offering is fully compliant with Amazon’s requirements and includes dedicated SFP support.
FBA stands for Fulfilled by Amazon. When using FBA, sellers send their products to Amazon fulfillment centers. Amazon manages storage and pick, pack, and ship on the merchant’s behalf for a fee determined primarily by product size.
FBM gives Amazon sellers better control over their business. When using FBA, shipments are sent in Amazon-branded packaging, which can lead to a confusing customer experience. FBA also maintains control over all customer data, prohibiting merchants from targeting their Amazon customers in remarketing or nurture campaigns.
Improving your Inventory Performance Index (IPI) score will slightly increase your inventory storage limits. However, merchants with a high IPI score often struggle to keep their inventory in-stock at Amazon fulfillment centers. Many sellers choose to use FBM as a backup to FBA so their listing never has to be inactive due to stockouts.
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