Amazon Changes and the Rate + Shipping Time Impact for FBA & FBM Sellers

Many are asking “what is going on with Amazon?” Changes to Amazon’s buy box algorithm, FBA fulfillment rates, and overall shipping timelines have left many scrambling – especially FBA sellers. However, there are some opportunities to increase your visibility, brand awareness, and sales despite the COVID-19 pandemic:

What is Going on with Amazon?

In the past 2-3 months, Amazon has gone from the fasted eCommerce marketplaces to now one of the slowest. The coronavirus pandemic has put a strain on Amazon due to reduced warehousing, closure of brick and mortar stores in various states, and the high demand of essential items from panic buying. This has hurt FBA sellers the hardest as both shipping cost and shipping timelines have increased.

 

The Impact on FBA Sellers and Fulfillment

In response to the COVID-19 pandemic, Amazon has placed restriction on inbound orders for non-essential items. This will carry on to an item-by-item basis ongoing until further notice. Amazon also has increased product delivery times up to almost 1 month later. These strict measures offer an opportunity for formally FBA sellers to now become FBM sellers (fulfilled by merchant) and deliver quicker and with less of a shipping cost by using an order fulfillment partner.

 

FBA vs. FBM Fulfillment

FBA (fulfilled by Amazon) utilizes Amazon’s order fulfillment center to send final product to end consumer. FBM (fulfilled by Merchant) is an alternative to FBA where the seller is responsible for order fulfillment. This is everything from storage, picking, packing, kitting & assembly, tracking, and inventory management using a 3PL or outsourced order fulfillment partner. NovEx Supply Chain offers simple and agile solutions to help you fulfill orders quickly and at industry leading value.

 

How to Grow your Business during the COVID-19 Pandemic:

 

Outsource your formerly FBA fulfillment to become an FBM seller

Doing this will help you win the buy box on Amazon as you offer faster shipping times and better rates that you can pass on to your new customer. Win the box, win the business, and delight your customers with faster arrival times.

Keep Inventory Well Stocked

With higher demand, ensure that your supply chain is professionally managed, forecasted accurately, and ready to meet the higher turn rate. Also, look at other product offerings that fit will with the current environment. Do not price gouge but find solutions for your customer base.

Optimize Your Listing

Review your product listings. Ensure you are using best practices for Amazon’s algorithms. Customers need to know what you are selling, what the benefits are, and why they should choose yours over other options. Faster arrival times and competitive pricing will help substantially with conversion. Use long and short tail keywords, use high quality images, provide value-added content and detail, and make it easy to read for Amazon product listing best practices.

Get Better Reviews

A verified buyer review showcasing your customer service, ability to deliver on time, ability to track their shipment, and your response time are all vital to getting a good customer review. Amazon changed the consumer buying behavior with their importance on reviews, ensure you deliver on time and exceed expectation to improve your review rating.

 

 

Now is the time if you are an FBA seller to move to FBM selling and order fulfillment. We are here to help guide you during this process and can offer our expertise as you look for an order fulfillment partner.  If you have any questions, please contact us at contact@novexit.com. We can help you with your logistics needs and provide time and money savings today.

Leave a Reply

Your email address will not be published. Required fields are marked *