Amazon’s third-party logistics (3PL) service that goes by the name of Fulfilment by Amazon is now available to its Australian suppliers.
“The thousands of businesses registered to sell on Amazon’s Australian Marketplace will be able to access Fulfilment by Amazon (FBA),” Amazon said in a statement. “Businesses can now benefit from Amazon’s logistics capabilities, helping them quickly and efficiently reach customers across Australia.”
Instead of warehousing, picking and packing, and dispatching themselves, businesses selling via Amazon send the products they wish to ship through FBA to Amazon’s distribution centre and when a customer places an order, Amazon will pick, pack and ship the product on behalf of the business. This is said to save time and money for businesses as they will no longer need to individually purchase shipping materials, individually pack orders, and make multiple trips to the post office. They will also access Amazon’s much lower freight rate structure, and Amazon will also handle all customer returns.
The service is not restricted by company size. Businesses of all sizes, or even individuals selling out of their home, can make use of the service.
“Size doesn’t matter in the digital economy and Amazon Marketplace helps to level the playing field when it comes to starting or growing a business,” said Amit Mahto, head of FBA in Australia. “We are focused on helping Australian businesses of all sizes succeed by inventing on their behalf and making our technology available to them and FBA is a fantastic example of this. Customers shopping on amazon.com.au will be able to access an ever growing and more unique range of products accompanied by the convenience of fast delivery and Amazon’s world-class customer service.”
FBA gives customers free delivery on eligible orders above $49, and with Prime set to launch in mid-2018, all FBA orders will also be eligible for the Prime shipping discounts.
Australian businesses pay a monthly fee of $49.95 for the right to sell their products on Amazon, on top of which comes a commission on sales of between 6 per cent and 15 per cent.
Amazon charges third-party sellers from $1.76 up to $25.48 for a bulky order weighing up to 30 kilograms to pick-and-pack an order.
On top of that, Amazon charges $7.76 to send an order weighing up to three kilograms.