Amazon’s inventory management system explained

By Oleg Mikhailenko
Published in Solutions
June 08, 2022
2 min read
Amazon’s inventory management system explained

Let’s say you’re just getting started on your selling journey and you have your sights set on ecommerce juggernaut Amazon. Specifically their fulfillment by Amazon or FBA service. It’s no question why. The FBA service is an excellent value for the money, assuming you don’t want to wrestle with booking your own warehouses and distribution centers. For a small fee, Amazon fulfillment services handles picking, packing, and shipping your products out to customers without you having to lift a single finger. Amazon fulfillment center locations are convenient and central, meaning customers can receive your merchandise as soon as the next day. These are only a few of the benefits FBA affords you. In this article, we’re going to be taking a look at this service, and how your inventory is handled if you put your trust in this ecommerce giant.

Let’s hear about the Amazon stock distribution policy.

Sure thing. Sellers are asked to provide four weeks of cover so merchandise can be evenly distributed across warehouses. This makes sure customers all over the country are seated comfortably within the Prime 2-day delivery range. From Amazon warehousing the products travel to a dedicated Amazon sort center where they’re distributed into trucks and sent on their way. Buyers and sellers alike are free and encouraged to track an Amazon package with the dedicated Amazon tracking ID assigned to each individual order.

Is there something Amazon distribution centers do that others don’t?

Unlike other corporations who contract out fulfillment centers Amazon does everything in-house. This means there’s no way interruptions, hiccups, or miscommunication crop up as packages are transferred from one company to another. Amazon warehouses store the products and their dedicated fleet of couriers distribute the products out to buyers. Many sellers find this is absolutely worth the extra fee charged, as it negates having to coordinate a lot of logistics and shuffling around. After all, the vast majority of merchants didn’t get into the business because they have some hidden fondness for the intricacies of fulfillment. They got into the business to sell awesome products. FBA allows them to divert their attention away from complex processes and towards the parts of their business that make them excited to get up in the morning.

What are my other options?

Aside from FBA, FBM (fulfillment by merchant) options are also available. This means you’re responsible for arranging storage, picking, packing, and shipping. If you run a storefront on multiple outlet channels and want to keep your operations condensed, FBM is an excellent choice that lets you expand out to the largest marketplace in the world without paying heaps of extra fees. But if you don’t have those other selling channels, and this will be your first or only outlet for your products, FBA might be the smarter choice as it means you don’t have to fork over a bunch of time and money to fulfillment companies right away.

In conclusion

The choice between FBA and FBM really comes down to how many online marketplaces you’re utilizing to sell your merchandise. Single-outlet sellers will often do better with FBA, while multi-channel merchants might want to give FBM a try assuming they’re already handling distribution for their other storefronts. But no matter which option you choose, P2Pseller has your back when it comes to booking warehousing, logistics, and transportation services that won’t break the bank. We allow small companies to find equal footing with regional and national giants, meaning you’re able to find the best solutions possible for your unique business needs and see all costs and fees totally in advance. We’d love to have you on board for the ecommerce revolution so you can grow your business bigger and better than ever before.


Tags

#amazon#inventorymanagement#fulfillment#fba#fbm
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Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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