Amazon FBA Update: Navigating Your Amazon Fulfillment Amid Coronavirus
On March 17th, Amazon US and EU sellers were notified that Fulfilled by Amazon (FBA) warehouses will no longer receive non-essential inventory through April 5th, 2020. This step was taken in response to the coronavirus (COVID-19) pandemic to ensure that in-demand inventory, including household staples and medical supplies, remain stocked and available. In this article, we’ll go over the challenges faced by global merchants who are now unable to use FBA, and present 12 options for how you can address the situation, including a few exclusive promotions to get you started.
Currently, only products in the following categories can be fulfilled through FBA in the US and EU:
- Baby
- Health & Household
- Beauty & Personal Care (including personal care appliances)
- Grocery
- Industrial & Scientific
- Pet Supplies
Sellers who do not work with these categories will need to switch from FBA to an FBM (Fulfilled by Merchant) model, in which you’ll be responsible for your inventory’s storage and fulfillment. To help get you started, we’ve compiled a list of trusted service providers to keep your store running.
Locating the Right Service Providers
Ensuring a smooth transition from FBA to FBM will likely require the help of service providers. Here are a few who we’d recommend.
: DHL’s advanced eCommerce logistics solutions & global reach, gives your business, access to customers in 220+ countries.- : Pace Global Logistics is a full-service logistics provider specializing in cross border eCommerce.
- : Qship is a shipping is a California based logistics and warehouse service provide for cross border eCommerce.
- : Gxpress Solutions (India) Pvt. Ltd. is a full service Global Logistics organization that offers reliable and customized solutions for U.S. and International shippers.
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: Making the Switch from FBA to FBM
For any seller affected by Amazon’s temporary restrictions, making the switch from FBA to FBM is simple and can be done by following the steps below:
- Log into Seller Central and select Manage FBA Inventory from the Inventory drop-down menu.
- Locate the SKUs that need to be switched, open the drop-down menu next to each item and select Change to Fulfilled by Merchant.
- Once you’re redirected to the Convert to ‘Fulfilled by Merchant’ page, simply click the Convert
- Conversions to FBM are typically made within 24-hours.
Despite requiring more work to store your inventory and ensure it is fulfilled properly, FBM does have several advantages over the FBA model, including:
- Cost effectiveness – While FBA provides a degree of security when it comes to fulfilling your orders, Amazon fees mean it isn’t always cost effective. Using cheaper 3rd party storage and shipping providers can end up saving you money in the long run.
- Control – FBM allows you to manage your inventory and shipping as you see fit, instead of having to follow Amazon policies.
- Consistency – Managing inventory and fulfillment on your own ensures that you’ll be unaffected by sudden changes to Amazon policies.
Payoneer is here to support your business! Please reach out to your Payoneer account manager if you have any questions or concerns regarding Amazon’s new policies or the service providers outlined here.
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