Inventory and Shipping Costs

The entrepreneur in me just beams with excitement reading this announcement from Amazon:

Fulfillment by Amazon beta
An Amazon Fulfillment Services Group

Fulfillment by Amazon (FBA) is a new program that makes delivering your Pro Merchant Program and WebStore orders a snap. You send your new and used products to us, and we’ll store them. As orders are placed, we’ll pick, pack and ship them to your customers from our network of fulfillment centers.

Simple fulfillment. Better customer service.

Inventory Storage — You still own your inventory, but we warehouse it.
Pick, Pack and Ship — When a customer places an order we pick, pack and ship it.
Powerful Promotions — Your items can be combined with other Amazon-fulfilled items in one shipment, so customers save on shipping costs. With Fulfillment by Amazon, you can offer your customers Amazon Prime, free Super Saver Shipping on qualifying sales through Amazon.com.
Customer Service — We manage post-order customer service, including the return and refund process, 24 hours a day, 7 days a week.

How it works

  1. You send us your inventory – Label, pack and ship your items to Amazon.
  2. We store your inventory – When we receive your items, we’ll store them until an order is placed.
  3. We fulfill your order – When an order is placed, we’ll pick, pack and ship the item, and may combine it with other items in the same order.
  4. We manage all post-order customer service – We’ll manage post-order customer service and handle returns as needed.

Wow and double wow.

So what about the pricing?

Seems reasonable to me. Maybe Amazon does personal storage next? 😉

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