Amazon FBA on-site is a program that offers the best parts of Fulfillment by Amazon and Seller-Fulfilled Prime. Your inventory remains in your facility and orders are fulfilled through Amazon’s transportation network. This definition is part of an email that a seller allegedly received directly from Amazon, you can read more here. The email further explains that it was sent as an invitation.
Amazon is growing rapidly every day and the selling community is becoming overwhelmingly saturated. Amazon warehouses are the ones that are suffering from this problem as well. The more sellers, the more space they need to store the seller’s products. Although not every seller signs up for Amazon FBA, the majority of them do. Unless they are signed up for Amazon Seller-Fulfilled Prime. Which is for sellers who can meet the same performance metrics as the warehouses and are allowed to pack and ship their items at their own warehouse, while having it available for Prime members.
Amazon has offered a new way to help with storage and shipping problems. Amazon FBA on-site is basically Amazon Seller-Fulfilled Prime and Amazon FBA combined. Like mentioned above, Amazon has emailed certain sellers for this program so it seems it is invitation only, which explains why there is not much information on Amazon’s website about the program.
Amazon claims that by using the program, you are able to take some advantages from the program. Below is a screenshot from the email mentioned above that include some of the advantages.
Link to photo here.
The Amazon FBA on-site program will allow Amazon to work with sellers who have their own warehouses by allowing them the same technology they use in the FBA warehouses. Amazon FBA on-site allows sellers to print their own Prime labels, and they can even get a discount on shipping. This program allows sellers to run their own Amazon FBA inventory management services in their own warehouses.
Returns and customer care is still handled by Amazon so there’s no worry there for sellers. This program allows warehouse owners to run their business just like Amazon, allowing them the advantage of discounts, technology and more. According to Ecomengine, sellers using Amazon FBA on-site WMS can integrate with programs like Small and Light as well as Subscribe and Save, which were only available to products shipped into the FBA warehouses at one point in time.
Amazon found a way to help themselves and their sellers at the same time. By offering this program, Amazon can help out their own warehouses along with the workers by having a portion of the products being sent in from sellers, sent to Seller-Fulfilled Warehouses. This also helps sellers who send their products to FBA by cutting down on storage fees.
How To Participate in Amazon FBA On-Site
The Amazon FBA on-site program is by invitation only, so you cannot sign up for it. On the other hand, if you have great performance metrics that could heighten your chances, you could be selected to be a part of the program.