Seller Central; Fulfillment by Merchant
The first option available to you is fulfillment by Amazon or FBA or Amazon Fulfilled, and this is where you have Amazon fulfill your orders from consumers who purchase your products from the Amazon websites. In this instance, you will do your own forecasting with the assistance of some reports from Amazon on product demand.show more
Create a shipping plan and ship your products to a single or multiple Amazon fulfillment centers. Then when a customer purchases your product off of Amazon, Amazon will pick, pack, and ship that product to the customer. Amazon will then deduct a referral fee or commission fee from the sale from the total sale price and pay you the balance of the sale price after their commission has been taken.
For example, if your product sells for $20 on the Amazon marketplace, Amazon may have a referral fee of $2 for this particular product. Amazon will then pay you the $18 balance and keep the $2 referral or commission fee for themselves. The advantage to this option is that you don’t have to deal with all the little itty bitty orders and the paperwork and labeling that goes into shipping a product to a consumer.
The disadvantage is that if Amazon does not have stock of your product, they will ship a product from another seller who does have stock and you end up using the sale. Further to this, using Fulfill by Amazon means that you will also be charged a pick-and-pack fee for each order as Amazon has to pick and pack your orders for you.