Local retailers will soon be able to let Amazon take care of their logistics – for an additional price.
Amazon has announced that Fulfilment by Amazon (FBA) will be available in March for Australian businesses that sell through the retail giant’s online marketplace.
The service allows (and requires) you to keep your stock at the local Amazon fulfilment centre. When an order is placed through Amazon Marketplace, the big retailer takes care of picking, packing and shipment.
There are advantages for both sellers and buyers.
Sellers no longer need to find storage space for their inventory – a particular benefit for home-based businesses. Nor do they have to worry about satchels, boxes and other packaging materials, trips to the post office, or waiting in for courier pickups.
But the service does come at a price. Sellers are charged for storage space and order fulfilment.
Amazon did not reveal the charges in its announcement, but it has been reported that storage will cost $19.40 per cubic metre (or $26.50 from October to December), with fulfilment and shipping starting at $1.76 for small envelopes and ranging up to $25.48 for bulky items weighing as much as 30kg.
An introductory offer provides free storage and removals until the end of August 2018, subject to unspecified conditions.
“With the help of FBA, we’ve been able to enter countries including the US and the UK, which we could have never done on our own,” said Sydney-based bag vendor Hip Club's founder Kevin Lippy.
“Fulfilment by Amazon really changed the game for us, and we’re thrilled it is now launching in Australia. FBA has allowed us to concentrate on the things we’re good at such as digital marketing and product development, leaving the logistics such as packing and delivery to Amazon.”
Buyers benefit from free delivery on “eligible orders” over $49 and the option of one-day expedited shipping to certain areas.
And once Amazon Prime launches in Australia, all FBA items will be eligible for Prime benefits.