As recently reported, sources say the giant online retailer Amazon.com is expected to close the Fulfillment By Amazon (FBA) program to new sellers during the Q4, 2016 period. New sellers who have not yet sent in their first shipment to Amazon will not be able to do so until January 2017. Amazon’s latest move will leave many hopeful retailers – without their own self-fulfillment programs – on the sidelines as other previously-established FBA sellers fight for those coveted Q4 sales.
Why is Amazon doing this? With the rise of demand and sales that Q4 brings, Amazon usually experiences a huge flood of sellers looking to cash in on the holiday shopping craze, but these ‘growth spurts’ don’t come without consequences. Amazon boasts a huge network of fulfillment centers in 23 states; in fact, they reportedly have over 50 fulfillment centers, over 20 sortation centers, and more than 90,000 full-time employees, but these facilities are not intended to be long-term storage warehouses, but rather temporary short-term storage facilities. The growing number of Amazon FBA sellers, coupled with slow-moving inventory, has put a strain on these fulfillment centers to the point that Amazon was forced to take measures to keep inventory flowing through its veins.
So what can new Amazon sellers do? If you have inventory coming and you see yourself blocked from selling your items on FBA, you still have the option to sell your products through a self-fulfilled (or Merchant-fulfilled) type of scenario with the assistance of a third-party warehousing and fulfillment provider – like Logistics Plus. We are an established and approved member of the Amazon Solutions Provider Network (SPN), so we know how to help sellers import, warehouse, label, and deliver their merchandise according to Amazon specifications.
When you work with Logistics Plus, instead of sending your orders to an FBA distribution center, have your goods delivered to one of our many warehouses around the U.S. (you don’t need to store your merchandise in your own home or garage any longer as some sellers have resorted to doing). When your merchandise is stored at a Logistics Plus warehouse, our warehouse management system (WMS) software provides you with online, complete real-time visibility to your inventory on-hand. Beyond that, the process is very similar to FBA; only you won’t need to worry about inventory management, security, picking & packing, labeling, etc. – Logistics Plus does all of this for you.
- Orders come directly to you through the Amazon system.
- You then forward the order to Logistics Plus along with the prepaid shipping label and packing slip.
- Logistics Plus picks and packs the order, labels it, and then sends the order to your customer.
- You monitor the status of your order through our online WMS.
That’s it. Now you can focus on marketing and selling your products rather than worrying about the warehousing and logistics side of things. If you’re ready to begin your own Merchant/Self-Fulfilled program with Logistics Plus, click the button below to learn more and get started. Alternatively, you can send an email to amazonretailer@logisticsplus.com. We’re here to help!
