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Fri July 9 2010 13:24:14

Video Peeks Inside Amazon's Fulfillment Warehouse

By: Ina Steiner

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Have you ever been tempted to send your inventory to Amazon.com warehouses for its FBA service, but been worried about the kind of treatment your merchandise would receive? Now you can picture where your inventory would reside and see how it's handled during the fulfillment process through a video Amazon released this week.

Amazon.com offers a fulfillment service (FBA) that handles the pick-pack-ship functions for online sellers, no matter which channels they use to list products. There are obvious benefits - it frees merchants to focus on marketing their business and sourcing inventory. It may also help merchants increase sales, since FBA products are eligible for Amazon's customer free-shipping programs. But giving up control of inventory is difficult for merchants for several reasons, including the cost, and concern about possible damage to items.

Steve Weber shared some insights in this May podcast interview - he has figured out how to use FBA successfully for certain products he sells. I'm always intrigued to read about people's experiences using FBA, such as this discussion thread on Amazon.

And with the recent talk about eBay getting into the fulfillment business, it's even more interesting to watch the sneak peek into Amazon's warehouse and imagine eBay building a similar feature for its sellers - could it pull it off - and would it want to?

The video resides on this page on Amazon.




Comments (11) | Permalink

Readers Comments

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Hardrock Rules

Fri Jul 9 15:05:04 2010

Whopee Ding ! Amazon has a warehouse, PLEASE don't give Donahoe any more ideas to try that will ruin eBay even further !

This might inspire Donahoe to have eBay be a warehouse also

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: no FBA

Fri Jul 9 17:03:18 2010

It may not be such a good idea to leave all those FBA eggs in one basket.

Giving control of inventory to any third party (a single selling venue) limits the seller's ability to market their items elsewhere.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Troglodyte

Fri Jul 9 18:26:29 2010

FBE would put our DSRs largely in control of the enemy and give ebay yet another way to exterminate still more sellers and eliminate discounts for others.

If ebay ran its warehouse(s) like it does the rest of its business, every seller using FBE might be doomed through typical and ubiquitous ebay incompetence, mismanagement, and greed.

Nearly all inventory shrinkage is due to emplpyee theft wich would further erode seller profitability.

FBE would be my worst nightmare.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Rich
Web Site

Fri Jul 9 20:37:23 2010

In my younger and more robust days I outsourced A lot of my fulfillment to a few others. Later, I decided ''fulfillment by Rich'' was just better. My satisfied customers always agreed. Some things just can't be improved upon...

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Et tu, Brute!

Fri Jul 9 23:38:38 2010

WHYYYYYYYYYYYYYYYYYYYYYYYYYYYYY do you guys always take this back to ebay?

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Terri

Fri Jul 9 23:55:32 2010


They're trying to be a copy cat Amazon, so I can see eBay trying this too.
NOTHING will turn ebay around until JD and his loons are gone, and then somebody with brains and respect for buyers AND sellers is in there.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Hardrock Rules

Sat Jul 10 08:55:17 2010

It was asked: "WHYYYYYYYYYYYYYYYYYYYYYYYYYYYYY do you guys always take this back to ebay?"

My Answer:
BECAAAAAAAAAUUUUUUUUUUUUSSSSSSSSSEEEE ! For lots of us, eBay was all we did, and did well from the 1990's till 2008 and we are SIIIIICCCCCCCKKKKKKK of eBay trying to be Amazon, when it never was, never will be !

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Luxferro This user has validated their user name.

Sat Jul 10 09:48:50 2010

A video about Amazon's FBA produced by Amazon will of course sounds great and flawless.
But what do you think is the best benefit for Amazon? Inventory control; once they have your merchandise, you can only use them as a channel! Don't do it.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Troglodyte

Sat Jul 10 10:49:05 2010

Maybe if everyone had read the final paragraph of Ina's story carefully they could make an educated guess why the discussion also is about ebay.

How much does Lieworld pay these heavy handed cretins to socially engineer the conversation here to reflect positively on ebay?

Listen up: no amount of social engineering including blogging away from what ebay considers anti ebay topics here in order to bury them can turn a sow's ear into a San Jose silk purse.

This insidious, devious "1984"-like practice probably isn't illegal given the fact that our corporatist Supreme Court ruled a few years ago that a Fox News station in Florida could knowingly air lies as factual news during its newscasts.

So the social engineering of social sites and blogs is nothing more than ebay exercising their unlimited first amendment rights.

But there are more of us than there are of them, and obviously we're having a far greater effect on ebay than DONahoe ever imagined possible when he began his small seller extermination program.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

This user has validated their user name. by: Ina

Sat Jul 10 11:22:03 2010

To clarify, you can use Fulfillment by Amazon for your other channels - including eBay sales.

However, if an item arrives damaged, Amazon will not hold your Amazon feedback accountable, but they can't control the feedback ratings you receive on other marketplaces (such as eBay), which is true of any fulfillment service.

Video Peeks Inside Amazon's Fulfillment Warehouse   Video Peeks Inside Amazon's Fulfillment Warehouse

by: Tim

Sat Jul 10 15:03:50 2010

For folks who think FBA can only be used to fulfill items sold on Amazon... you are incorrect.  FBA can also be used for ALL your fulfillment needs.

Imagine selling something on eBay and it shows up to your customer in an Amazon box!  :-)

I used FBA for a while and it will give your Amazon sales a boost (shoppers can use their Prime subscription for free shipping).  However I did find that for my items, I could still ship to other (non-Amazon) customer cheaper.

If you have an item with a reasonable amount of profit and so could support the little bit of extra s/h/storage you'd pay to Amazon, FBA could really power your entire warehouse operation!



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