Scaling up your small or medium-sized business online can have a huge positive impact. After all, an average user spends 6 hours and 58 minutes online every day.
One of the biggest platforms where you can successfully run an online business is Amazon.
It’s the leading e-commerce giant because of its effortless supply chain model.
Amazon’s supply chain essentially means the entire process, from product warehousing to inventory management. This ensures that the entire supply chain process works well.
Amazon management services play a significant role in this area. So, if you’re unaware, let’s know it in detail!
Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM)
In FBA, Amazon will handle your logistics and supply chain issues. Third-party sellers will only have to send their bulk products to Amazon’s factory for packing and shipping.
If you’re a third-party seller and require support for logistics and supply chains, then FBA is a great option.
In FBM, third-party sellers are responsible for listing their products on Amazon. They will also handle storage, packaging, shipping, and stock inventory.
An experienced Amazon Management Services provider helps you choose between FBA and FBM depending on your logistic abilities, customer base, and product volume. It also offers more insights on which will be more cost-efficient for you.
Inventory and storage processes
AMS plays a big role in inventory and storage management. As a seller, your main responsibility is to ensure that all the products are in stock and that you don’t have to delay the delivery of a certain product that your customer has wanted to purchase.
In the FBA process, you have to ship your products to Amazon’s warehouses, keeping in mind the regulatory compliance.
For example, you must remember the dimensions of the packing boxes that Amazon requires. Each box should also have a scannable barcode for easy identification.
AMS’s inventory tools and dashboards help track inventory levels, send restock alerts, and optimize these processes. They inform you of all guidelines and help you comply to avoid fines and penalties.
Probability demand forecast
The probability demand forecast is a new system that Amazon introduced to communicate inventory demands to third-party suppliers.
Demand will still be related to the sales history and glance views, but the kind of forecast that the supplier company can play an important role in its future.
For example, P70 means that there is a 70% chance that Amazon will purchase the demand of the level indicated or less or a 30% chance that they will purchase more.
If you want an accurate demand forecast, you can contact an Amazon listing optimization agency.
Amazon Fulfillment Centres and Delivery Fleet
You must consider two essential pillars regarding Amazon’s supply chain systems.
The Amazon Fulfillment Centres are rapidly opening worldwide to keep up with the growing number of customers. Currently, there are more than 175 fulfillment centers worldwide.
The Amazon Delivery Fleet consists of different modes of transportation and delivery partners involved in the fast delivery of products and services.
AMS helps third-party sellers like you to integrate with Amazon’s supply chain network. It enhances how you manage your supply chains using their network. They guide you with strategic inventory placement and logistics support and ensure you offer fast deliveries.
Amazon Technology
Amazon employs several automation and robotic solutions to store and pack orders and keep inventory count.
This serves two main purposes: cutting down on warehousing and staffing costs and freeing up funds for different logistics and supply chain demands. They also plan to launch drones to deliver products in just 30 minutes.
An experienced Amazon Management Services provider offers great technical support to help your team understand and utilize them effectively.
They set up listings, manage inventory, and offer insights about sales performance and other relevant KPIs.
Strong customer service
No matter how great your delivery process is, having a comprehensive return and replacement policy is equally important.
Amazon has invested heavily in ensuring customers can easily return their products or speak about user experiences. Customers can easily return their items by mail or even pick a doorstep pickup.
They provide an easy way to track and locate returns or replacements. If a third-party seller wishes to collaborate with Amazon through FBA, Amazon will take care of returns and refunds.
Here, a reputable AMS provider offers knowledgeable customer support representatives to handle inquiries. They streamline returns with easy instructions and automation tools.
Conclusion
Amazon Management Services has truly transformed how sellers manage supply chains. They offer all the infrastructure and tools to streamline relevant operations, ensuring a customer-centric approach and a unique supply chain strategy!