How to make your first shipment in Amazon FBA?

Are you planning to sell on Amazon and wondering how to prepare your first shipment? If you already have an account on this platform and are offering products under the FBM (Fulfillment by Merchant) model, you can immediately check which products are most popular with customers. Above all, these goods are worth sending to the giant's online warehouse. If you're just starting your adventure with this e-commerce platform, we'll guide you step by step on what to do to profit from sales under FBA (Fulfillment by Amazon). Check what you need to do to make the most of the benefits associated with this model.

What advantages does Amazon FBA have compared to the FBM model?

If you're unclear about how sales work under both models, read our guide. Below, in the table, you will find the basic differences between Amazon FBA and FBM. This way, you can decide for yourself whether it is worthwhile to start using the giant's warehouses in the online shopping market or better to wait.

The platform distinguishes the following categories for storing goods in FBA:

Clothing, shoes, bags

All other standard-size products

Large-sized goods

Hazardous materials.

Exact amounts can be checked at https://sellercentral.amazon.de/gp/help/help.html?itemID=G200612770&ref_=xx_swlang_head_xx&mons_sel_locale=en_DE&languageSwitched=1 after logging in.

The main differences between Amazon FBA and FBM

FBM

FBA

you store the goods yourself

the goods are stored by Amazon

you are responsible for shipping to the customer

Amazon ships orders to customers

longer delivery time abroad

reduced delivery time

customers cannot use the Amazon Prime program (free shipping)

Customers can enjoy the benefits of membership in this program

relatively high shipping costs for individual orders abroad

lower shipping costs, leading to a more attractive offer

You organize customer service in the local language of each market where you sell

Amazon provides customer service

you are responsible for handling returns

Amazon takes care of returns

there is no obligation to register for VAT in another country if you store goods in Poland

mandatory registration with the tax office of the countries where your selected warehouses are located

Tab. 1 Differences between Amazon FBM and FBA sales models

Moreover, the "Shipped by Amazon" logo on FBA products builds customer trust. They prefer this option more than shipments directly from the seller. If you're still wondering which option is better in your case, check the advantages of FBM or contact experts in Amazon sales.

Benefits of the FBM model

Amazon FBM also has specific advantages. Above all, costs for storage based on the type of goods are eliminated. Amazon FBM is suitable for sellers who want to handle packing and shipping orders themselves. They can operate this way until the order volume becomes too large for them to manage alone. Then they must decide whether to hire additional staff or switch to the Amazon FBA model. Sellers enjoy more freedom, including being able to contact customers to clarify product details (e.g., dimensions of a custom-made sofa). In Fulfillment by Amazon, communication between the seller and the buyer is only possible through the portal.

Shipping to the FBA warehouse - what to pay special attention to?

We have already established that you should send only those products that have been selling well so far. What should you do if you're just starting and introducing goods to the market? Choose the FBM model or offer a limited selection in FBA to avoid risk. The more warehouse space you use, the higher the fees will be. Therefore, at first, it is best to test individual marketplaces, checking what customers are most interested in. Are you ready? Let's get started!

Go to Inventory and select "Manage FBA inventory." Then select the products you want to send by checking the box on the left side. At the top of the gray bar above the listings, a message will appear, e.g., "Selected action for 2." Click there and select "Send/replenish inventory." Amazon will guide you through the next steps until you confirm the shipment.

What does the shipping preparation panel look like?

After accepting the terms and determining whether your goods are classified as hazardous materials, you will proceed to the main shipping panel. The previously checked products that you intend to send will appear immediately. Choose the destination location, i.e., the country where the warehouse of interest is located. Then follow the guidelines displayed in the Amazon Seller panel. If you fill in any field incorrectly, the system will notify you of the need for correction.

Confirmation of goods (SKUs) to be shipped

Fig. 1 Step 1 - Confirmation of stock to be sent

Confirmation of shipment

Next, you select the sizes of the shipment and confirm its contents.

Fig. 2 Step 2 - Confirmation of the dispatch and delivery address and the contents of the shipment

Printing labels on packages

The next step is to confirm the sender's address and print labels for each package. Amazon will specify exactly which boxes need to be labeled. Remember to accurately describe each file when saving it to your disk. This will help you avoid confusion when labeling packages. If you want to avoid labeling, you can have this task done by the warehouse employees of this e-commerce giant for a fee ("Who prepares" - select Amazon).

Fig. 3 Step 3 - Printing labels for each package

Final confirmation of all data

Finally, you confirm the information about the carrier and the number of pallets being shipped. You print additional labels unless you are shipping an amount of goods that takes up less than half a pallet. In that case, you do not need to generate them.

Fig. 4 Step 4 - Confirmation of the information provided and printing labels for pallets

How to choose the right warehouse?

The choice of warehouse depends on which market you want to offer products. If you are starting to sell on amazon.de and have a German tax number, you can send your goods to a warehouse located in that country. If you do not have a tax identification number issued by the local tax office, take advantage of the opportunities offered by the One Stop Shop (OSS). In this case, the shipment goes to a warehouse in Poland or another EU member state where your company is based. From there, it is sent to customers throughout the Community. When sales on Amazon pick up speed and you begin to expand into other available marketplaces, it is best to ship to various warehouses located where the offered products rotate best. If you still have doubts about which option to choose or want to entrust shipping and inventory management to experts, we invite you to Go2Market. Our agency specializes in comprehensive sales support on Amazon.

Happy FBA Shipping,

Amata Borys-Chudek

Go2Market Crew