According to a study, 51% of FBM sellers took much less time (less than six weeks) to get started on Amazon compared to the other 34% of FBA sellers. However, the time taken to accept orders on your Amazon store and fulfill them might be longer without the right 3PL partner handling fulfilled by merchant operations.
The right 3PL partner to fulfill your Australian orders on your Amazon online store can be determined by various factors such as shipping and storage solutions, the ability to offer personalization in the pick-and-pack leg of fulfillment, tech-integrated capabilities and more. This comprehensive guide dives into the intricacies an Amazon seller in Australia Has to look out for before finalizing a 3PL partner for Amazon FBM.
Fulfilled by Merchant For Amazon Store Fulfillment in Australia
Fulfillment by Merchant (FBM) on Amazon empowers you, the seller, to manage the entire fulfillment process for your products. This means you’re responsible for everything from storing your inventory to picking, packing, and shipping customer orders.
There are two main ways to approach FBM fulfillment:
- In-House Fulfillment: Amazon Sellers opting for in-house fulfillment in fulfilled by merchant must handle the entire process of fulfillment from storage to shipping and handling returns. While choosing in-house fulfillment offers maximum control, it requires sellers to invest time, effort, capital and incorporate the best e-commerce tech stack to streamline operations.
- 3PL Fulfillment (Third-Party Logistics): You outsource fulfillment to a specialized 3PL provider with established presence in Australia and can handle international fulfillment. The 3PL stores your inventory, picks and packs your orders, and ships them to customers on your behalf. This option offers greater scalability and potentially lower costs, especially for high-volume sellers or those with limited storage space.
Choosing Between In-House and 3PL Supported Amazon Fulfillment by Merchant
| Feature | In-House Fulfillment | 3PL Fulfillment |
| Control | Maximum control over all aspects of fulfillment | Less control, but can provide guidance and expertise |
| Cost | Potentially lower upfront costs for low-volume sellers | Potentially higher upfront costs, but can lead to cost savings on storage, labor, and shipping in the long run |
| Scalability | Limited scalability as your business grows | Highly scalable – 3PLs can adapt to increasing order volume |
| Expertise | Requires knowledge and experience in fulfillment operations | Leverages the 3PL’s expertise in efficient fulfillment processes |
| Investment | Requires investment in storage space, packaging materials, and labor | Potentially lower upfront investment, but ongoing fees to the 3PL |
Amazon FBM: How 3pls Can Manage Fulfillment For You
Managing fulfillment yourself can be time-consuming, especially as your business grows. This is where a 3PL (Third-Party Logistics) provider steps in, becoming your secret weapon for efficient and scalable FBM success in the Australian continent.
Time-Efficiency
Fulfilling orders can eat into valuable time that could be better spent on other business activities like product development, marketing, and customer service. Partnering with a 3PL takes the fulfillment burden off your shoulders, allowing you to focus on core business strategies that drive growth.
Flexible Warehousing:
In-house fulfillment can require significant investment in storage space, especially for larger or bulkier items. 3PLs offer a cost-effective alternative. You only pay for the space you use, eliminating the need for upfront investments in fixed warehouses for storage. With some 3PLs, you can choose to distribute your inventory across key e-commerce hubs making it possible to ship orders faster at lower costs.. Not paying for fixed storage infrastructure costs like labor, maintenance, and security frees up capital for other business needs.
Scalability
As your business scales on Amazon, your storage needs will inevitably grow too. 3PLs give your Australian e-commerce businessthe infrastructure and resources to handle fluctuating inventory levels. Amazon Sellers opting for 3PL can choose to scale warehousing capacity to accommodate your increased demand, and cater to Amazon shoppers..
Local Partnerships With Native Australian Carriers
Fast and reliable delivery is crucial for customer satisfaction. Many 3PLs have established partnerships with local last-mile carriers across Australia. This allows them to offer a wider range of faster shipping options, even to remote locations. Without worrying about long delivery times hindering your reach – a 3PL can ensure your products get to customers who are remote, closer to key urban areas and across the borders quickly and efficiently.
Nationwide Coverage
3PLs often have a network of strategically located warehouses across the country. This provides a significant advantage over in-house fulfillment, which might restrict the sellers ability to extend reach to regional areas in Australia or offer normal shipping to shoppers outside the immediate coverage of the warehouse. With distributed inventory stored in strategically placed warehouses, 3PLs can help e-commerce sellers offer faster shipping and fulfillment options to customers in Australia, leading to higher customer satisfaction and potentially increased sales.
How 3PLs Can Game Changers For Amazon FBM
1. Customized Packaging & Fulfillment: Unlike FBA’s generic packaging, FBM with a 3PL empowers you with complete control over branding. Design custom boxes, inserts, and even include handwritten notes. This personalized touch creates a lasting impression on customers, fostering brand loyalty and setting you apart from the competition.
2. Streamlined Inventory Management & Fulfillment Processes: A good 3PL partner caters to your specific needs. They offer flexible inventory handling solutions, allowing you to optimize storage and picking processes. This ensures your products are received based on the Amazon seller’s specification, stored in the warehouse based on the batch and shelf life threshold, and efficiently retrieved and picked accurately, minimizing fulfillment errors and delays.
3. Accelerated Delivery Options: FBM allows Amazon sellers in Australiato choose last mile carriers, unlike FBA’s limitations. Partner with a 3PL that offers access to a reputed network of top Australian carriers. This enables sellers to offer diverse shipping options to Australian customers across different regions and potentially increasing conversions and repeat purchases.
4. Cost-Effective Fulfillment Strategies: FBA fees can quickly add up, especially for smaller sellers. Partnering with a cost-effective 3PL can significantly reduce fulfillment costs. You only pay for the storage space you use and can negotiate competitive shipping rates with multiple carriers.
5. Scalable Solutions: Amazon imposed sales and storage criteria can prevent e-commerce businesses from choosing fulfillment provided by Amazon.? Unlike FBA’s minimum storage requirements, fulfillment by merchant supported by 3PLs caters to businesses of all sizes. This makes FBM with a 3PL ideal for new sellers or those with a lower Minimum Order Value (MOV), allowing you to test the waters and scale up seamlessly as your business grows.
6. Data-Driven Inventory Management with Forecasting: Many 3PLs offer inventory forecasting services but when opting for scalable and efficient spaces for inventory storage, accurately predicting the forecast is critical to maintaining Amazon’s SLA. By analyzing historical sales data and market trends, Amazon sellers must be able to log forecasts signaling warehouses to be ready to handle the high influx of orders.. This ensures sellers can service these orders as usual without facing SLA breaches and attracting Amazon penalites that impact store visibility on the platform.
Locad: The Right 3PL To Outsource Amazon Fulfilled by Merchant Operations
The key to successful FBM lies in finding a 3PL partner who understands your specific requirements. Different sellers have different products with varying storage, handling, and shipping needs. For instance, a seller of fragile electronics will require specialized packaging and handling procedures compared to a seller of clothing. A one-size-fits-all approach simply won’t do.
Locad, an established storage and 3PL fulfillment solutions provider steps in as your strategic FBM fulfillment partner in Australia. Unlock more than storage and shipping solutions and gain a comprehensive suite of services designed to cater to the unique needs of your Amazon business.
Here’s why Locad might be the perfect fit to run your FBM operations for your Amazon online store:
We Speak Your Language:
At Locad, we understand the complexities of the Australian e-commerce landscape and the specific challenges faced by Amazon FBM sellers. Our team of experts will work closely with you to understand your business, products, and growth goals.
Multi-channel Selling:
Locad understands the importance of multichannel selling, which is why our multi-channel integration would deem beneficial. As a seller, you get to monitor the flow of inventory, stock updates, stock-outs, sales volume etc, across multiple channels that you sell, all under one roof. This helps you make strategic decisions pertaining to your inventory and helps avoid the hassle of stock-out. Additionally, Locad’s OMS provides an out-of-stock indicator which alters you when you would ideally need to restock the products.
Scalable Solutions for Growth:
Whether you’re a new seller just starting or a seasoned pro looking to scale your business, Locad has the solutions you need. Our scalable warehousing and fulfillment infrastructure across key urban cities like Melbourne, Brisbane, Sydney, and Perth can help sellers offer nationwide fulfillment coverage and fast shipping at lower costs.
Technology Meets Expertise:
Locad leverages cutting-edge technology to streamline your FBM operations. Our cloud-based Locad Logistics Engine syncs with your Amazon online store to automatically process your orders ensuring none slips through the cracks. Gain Real-time inventory visibility, cost-effective carrier selection, and complete visibility into the entire fulfillment processes, to make sure every order receives the utmost care from pick, pack, ship, track and unbox.
Conclusion
FBM offers Australian sellers a less-traveled path that is paved with control, brand identity, and potentially lower costs. Hence it is the most preferred method of fulfillment for several Aussie sellers. However, keep in mind that FBM to be done efficiently requires a trustworthy partner – a 3PL that understands your particular needs and functions as an extension of your team.
The right 3PL,such as Locad, won’t just handle your fulfillment; they’ll become a strategic asset, streamlining operations, optimizing costs, managing inventory and assisting you in providing an outstanding customer experience.
So, sign up with Locad today and scale your Australian business with us!
