For sellers utilising Amazon’s Fulfilment by Amazon (FBA) program, a comprehensive understanding of Amazon Fulfilment Centres and their codes is essential. These codes indicate where inventory is stored and processed, providing a foundation for optimising your logistics strategy. This guide explores the significance of these centers, their functions, and the value of expert assistance in managing operations effectively.
Table of Contents
Fulfilment Basics
What Is Fulfilment
Fulfilment refers to the entire process of managing inventory, including storage, packaging, shipping, and returns. Sellers can approach this in different ways:
- FBA: Amazon manages the entire process, offering rapid shipping and access to Prime benefits.
- FBM: Sellers handle fulfilment independently, including order processing and delivery.
- Hybrid Models: A combination of self-managed and outsourced solutions for flexibility.
Why Fulfilment Matters
- Improving Customer Experience: Timely and reliable delivery builds trust and satisfaction.
- Unlocking Prime Benefits: FBA sellers gain Prime status, increasing visibility and conversions.
- Reducing Errors: Efficient logistics reduce mistakes, fostering positive reviews and fewer returns.
- Building Brand Trust: Consistency in delivery enhances reputation and customer loyalty.
- Operational Growth: Delegating fulfilment to Amazon allows sellers to scale efficiently.
- Expanding Globally: Amazon’s extensive network simplifies international sales.
- Boosting Profit Margins: Streamlined logistics reduce costs, improving overall profitability.
Types of Amazon Fulfilment Facilities
- Sortable Centres
Purpose: Manage smaller, standardised items such as books or electronics.
Features: Employ advanced robotics to improve efficiency and accuracy. - Non-Sortable Centres
Purpose: Handle larger, bulkier items like furniture or outdoor gear.
Specialisation:** Focused on efficient storage and shipment of oversized products. - Sortation Centres
Function: Sort packages by destination for faster regional delivery.
Role in Delivery: Key to expedited shipping and weekend deliveries. - Receive Centres
Purpose: Process large shipments of popular items for distribution across the network.
Benefit: Helps balance inventory supply in high-demand areas. - Specialty Facilities
Purpose: Focus on specific product categories or support seasonal demand spikes.
Employment Opportunities: Offer flexible roles during peak periods. - Delivery Stations
Role: Prepare orders for last-mile delivery.
Collaboration: Works with delivery partners to ensure timely customer shipments.
Warehouse Code Reference for Amazon EU Sellers
Amazon assigns unique identifiers to its fulfilment centres, directing where sellers send inventory. These codes simplify shipment tracking and ensure seamless processing within Amazon’s logistics network. While sellers don’t choose the centres directly, understanding these assignments is crucial for efficient inventory management.
Steps to Prepare Shipments for Fulfilment Centres
- Access your shipping dashboard within Seller or Vendor Central.
- Identify the inventory you plan to ship and prepare it for transport.
- Confirm shipping preferences and print necessary labels.
- Arrange for transportation to the assigned fulfilment centre using a carrier of your choice.
Navigating FBA Fees
| Fee Type | Description | Calculation Basis |
|---|---|---|
| Inventory Storage Fees | Charged based on the average daily volume of inventory stored in fulfilment centres. | Measured in cubic feet |
| Long-Term Storage Fees | Applies to items stored for more than 365 days in a fulfilment centre. | Assessed monthly |
| Fulfilment Fees | Covers tasks like picking, packing, shipping, and customer service. | Per unit shipped |
| Unplanned Service Fees | Charged for inventory that arrives without proper preparation or labeling. | Per incident |
| Removal Order Fees | Covers the cost of returning or disposing of unsold inventory. | Per item |
| Returns Processing Fees | Applies when Amazon offers free return shipping to customers. | Per returned item |
Going Beyond Basic Knowledge
Success on Amazon requires more than an understanding of warehouse codes. Sellers must strike a balance between profitability and customer satisfaction while adhering to Amazon’s guidelines.
Partnering with experts can streamline operations and maximise efficiency. Lezzat is a multi-award-winning Amazon full-service agency dedicated to helping brands thrive on the world’s largest e-commerce platform. With a team of skilled marketing specialists, designers, and consultants, we provide end-to-end solutions tailored to maximise your success on Amazon.
Contact us today for personalised strategies to take your business to the next level.
