Did you know that Amazon in the Kingdom of Saudi Arabia has 40.9 million visitors per month? That’s a massive amount of traffic. If you sell and market products to consumers in Saudi Arabia, consider taking the next step: Amazon KSA seller registration.
Once you’re a registered Amazon seller, you need to make some decisions. One of these is choosing an appropriate fulfillment strategy.
What Is Fulfillment?
In the context of e-commerce, fulfillment is fulfilling orders. It refers to all the processes involved in preparing products for shipment and shipping them to customers. These processes include the following:
- Product storage: Products are stored in a warehouse so they can be easily and readily dispatched when orders come in.
- Order processing: Customer orders are received and logged, and customer payments are processed. In automated order fulfillment systems, this should actuate the next steps, including selecting the logistics/last-mile delivery partner and calculating shipping fees, taxes, delivery timelines, and total customer dues.
- Payment processing: The fulfillment process also includes processing customer payments. Successful payments lead to the generation of kitting and bundling instructions and shipment labels and trigger a pick-up order with the selected delivery partner.
- Kitting and bundling: When a customer orders a kit (one with several components, say, a facial cleanser, toner, moisturizer, and sunblock) or a bundle (two bottles of moisturizers), fulfillment requires gathering all the individual elements together and kit or bundle assembly.
- Packing and packaging: Once the kit or bundle is complete, it is placed in an appropriate packaging, one that will protect it during transit.
- Labeling for shipment: Once the package is ready, the shipping label is affixed to it. Labeling precision is vital to timely deliveries.
- Product shipment: The logistics partner picks up the labeled parcel and transports it through land, water or air until it arrives at its destination: the customer’s address. The package may be dispatched through various carriers for efficient and prompt delivery.
- Customer notification about order shipment: Customers are notified when their order leaves the warehouse. The customer is given a tracking number and a portal where they can track their order’s progress and monitor its journey to their address.
- Processing returns and exchanges: Fulfillment also entails handling reverse logistics: receiving and processing returns and exchange requests, receiving returned items, and triggering refunds or replacements, as appropriate.
The Amazon Seller’s Order-Fulfillment Options
Order fulfillment is crucial to customer engagement, trust, and satisfaction. If you get it right, your customers will come back, but a misstep can cause you to lose your customers.
As an Amazon seller, you must take the time to carefully consider the available order fulfillment options. They are the following:
1. Self Ship
The self-ship option means you remain in charge of all your fulfillment processes. You have your own warehouse where you keep your inventory. As orders come in through Amazon, you (or your staff) will record the customer and order details, kit or bundle products, and put them in the appropriate packaging.
After that, you will choose your carrier, print out the shipping details on a label, and schedule it for pick-up by your delivery partner. You must then notify your customer that their order is in transit.
This may seem like a lot of work – but that’s because it is. Even with order fulfillment software, you must be in charge and on top of your fulfillment and logistics processes.
Self shipping is best if you sell irregularly shaped and bulky products. It is also a good option if you’re a large-scale seller with your own fulfillment staff, warehouse, negotiated rates with delivery partners, order fulfillment software, and efficient processes.
2. Easy Ship
Easy ship is the combination of the self-ship and fulfillment by Amazon options. In easy ship, you will take charge of storage, packaging, and labeling. You will need to do everything involved in self-ship, including scheduling packages for dispatch.
However, in easy ship, Amazon becomes your delivery partner. An Amazon logistics delivery associate will pick up the package from your fulfillment center or warehouse, and Amazon will deliver it to the buyer.
Easy ship is for you if you have a warehouse and staff but do not have the volume required to get preferential rates from carriers. Putting Amazon in charge of shipping unlocks the following benefits:
- The efficiency of Amazon logistics without the need to relinquish control over storage, assembly, and packaging
- The option to let Amazon handle returns and exchanges
- The option to accept credit card and cash on delivery payments from customers
3. Fulfillment by Amazon
Fulfillment by Amazon (FBA) is the best fulfillment strategy if you’re new to Amazon but want to scale your business as soon as possible. It’s also an excellent option for established brands that wish to increase the reach of their best-selling products.
For example, suppose you’re an Arabian perfume company with an established online shop and efficient fulfillment processes. However, since you want to promote your best-selling summer perfumes to Amazon Prime members, you put them on Amazon and choose FBA.
Under an FBA strategy, Amazon will:
- Store your products in their warehouses or fulfillment centers
- Process orders
- Pack parcels
- Deliver to buyers
FBA is the easiest way to fulfill orders, ensuring the best shipping offers (free shipping deals) for customers and the shortest delivery timeframes. Your products will become more visible on the Amazon platform, even to Prime customers, and Amazon will take care of returns, customer notifications, and customer support.
Know Which Fulfillment Strategy Is for You
Every fulfillment strategy has distinct advantages.
Self-ship gives you the most control. This is for you if you’re a large-scale seller with a mature fulfillment infrastructure. Easy ship is recommended if you have warehousing and packaging capabilities but prefer delivery via Amazon logistics. Fulfillment by Amazon is the best option if you have no fulfillment capacity or simply want the most convenient option of all.
