Selling on Amazon Marketplace: What are my Fulfillment Options?

Selecting the most suitable fulfillment solution is crucial for merchants aiming to deliver exceptional customer experiences while managing their costs and operation efficiency. Amazon offers a variety of fulfillment options, catering to diverse business needs and strategies. In this article we are going to look at three of the most commonly used fulfillment methods on Amazon Marketplace and how Stock2Shop integration can add value to each: Fulfillment by Amazon (FBA), Easy Ship and Merchant Fulfilled Network (MFN).

Fulfillment by Amazon (FBA)

FBA provides end-to-end fulfillment services where Amazon manages storage, picking, packing, shipping, customer service, and returns. It’s ideal for sellers seeking hassle-free logistics, Prime eligibility, and scalable operations. With FBA, you can leverage Amazon’s robust delivery network and focus on business growth.

Amazon Easy Ship

Easy Ship blends convenience and control by allowing you to outsource package delivery to Amazon while retaining control of your warehouse operations and, importantly, your stock. You benefit from competitive rates and reliable delivery, making it suitable for sellers seeking a balance between autonomy and Amazon’s logistical support.

For a more detailed overview of Easy Ship, including how it works and what the benefits are, click here.

Merchant Fulfilled Network (MFN)

MFN (also called Self Ship) lets you handle the entire order lifecycle, from storage to shipping and customer support, using your facilities or third-party logistics. It suits merchants with established warehouses, personalised customer experiences and specific shipping preferences.

What to consider when choosing your fulfillment method

Key considerations FBA Easy Ship MFN
Business scale and growth plans Suited for rapid scaling and high-volume operations. Ideal for moderate-volume businesses with growth aspirations. Best for small-scale or niche businesses with tailored fulfillment needs.
Logistics infrastructure Minimal logistics infrastructure required; Amazon handles most operations. Sellers need their warehouse facilities but leverage Amazon’s delivery capabilities. Sellers manage their warehouses and logistics independently.
Customer experience and Prime eligibility Prime eligibility, fast shipping, and Amazon-managed customer service enhance buyer satisfaction. Offers competitive delivery options but lacks Prime benefits. Flexibility to customise customer experiences but may not meet Prime standards.
Cost and pricing structure Upfront and fulfillment fees; offers cost savings on shipping and storage. Competitive rates with transparent pricing; sellers bear storage and shipping costs. Sellers manage costs directly, potentially leading to higher shipping expenses.
Inventory management and control Amazon-owned inventory management system; sellers relinquish direct control Sellers maintain inventory control but rely on Amazon for shipping logistics Full control over inventory management and fulfillment processes

Integrating with Amazon

For sellers looking for a streamlined workflow, they can use Stock2Shop to leverage the Selling Partner API (SP-API) to sync data between their ERP and the Amazon Marketplace. Integration offers different benefits, depending on the fulfillment option you choose:

  • MFN: Utilise Orders API and Merchant Fulfillment API for automated order processing and efficient shipping label generation.
  • FBA: Access FBA-specific APIs for shipment creation and inventory management.
  • Easy Ship: Leverage the Easy Ship API for real-time order management and scheduling.

Depending on your data source (e.g your ERP system), you can automate Amazon orders directly into your accounting software as invoices or sales orders. And if you are using the Easy Ship fulfillment method, you can sync inventory and offer (price) updates to Amazon as well.

Comparison table

The table below lists some of the more popular fulfillment options available to sellers, specifies how inventory is stored in each of them, and who is responsible for the shipping experience.

Fulfillment Option Inventory storage Shipping
Merchant Fulfilled Network (MFN) Seller's warehouse Seller
Fulfillment By Amazon Amazon fulfillment centre Amazon
Easy Ship Seller's warehouse Amazon

Selecting the right Amazon fulfillment solution is pivotal for optimising operational efficiency and enhancing customer satisfaction. Whether opting for the hands-off approach of FBA, the hybrid model of Easy Ship or the self-managed MFN, you can harness Amazon’s Selling Partner API (SP-API) for automating many of your processes. Stock2Shop has pre-built integration with Amazon, so give us a call if you are looking to streamline your business.

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