Forum Moderators: buckworks
Fulfillment by AmazonFulfillment by Amazon allows businesses to use Amazon's own order fulfillment and post-order customer service infrastructure, and allows Amazon.com customers to receive the benefit of Amazon.com shipping offers when buying from third-party sellers who use Fulfillment by Amazon. Amazon.com customers can now use offers such as Amazon Prime and Free Super Saver Shipping when buying products with the "Fulfilled by Amazon" icon next to the offering listing.
WebStore by AmazonWebStore by Amazon allows businesses to create their own privately branded e-commerce websites using Amazon technology. Businesses can choose from a variety of website layout options and can customize their sites using their own photos and branding. WebStore by Amazon users pay a commission of 7 percent (price includes credit card processing fees and fraud protection) for each product purchased through their site and a monthly fee of $59.95.
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WebStore by Amazon users pay a commission of 7 percent (price includes credit card processing fees and fraud protection) for each product purchased through their site and a monthly fee of $59.95.
Isn't that a little costly compared to Yahoo?
Sad developments all over.
For Amazon Prime customers (unlimited free two-day shipping, unlimited US$3.99 overnight shipping, by private carriers) the ability to get Prime shipping from third-parties is a huge win. Amazon Prime shipping is simply perfect.
If this service really does provide Amazon-quality service and shipping, then whatever Amazon charges sellers will be a bargain.
However, there are branding issues that are still pending. For instance, the checkout form spoils all branding efforts. Amazon developer team may think about the option of giving their webstore associates a limited version of merchant accounts. The idea is to have a merchant branded checkout process. This way customer's credit card statement will have webstore merchant details not Amazon's.
So, this solution is very appealing to me. It's got to be better than my current situation, anyway.
Thanks for correcting me... this is quite interesting. And now after fulling understanding the fulfillment end... this is not bad at all and should really help a lot of smaller businesses.
For a handling fee as low as $0.50 per item plus $0.40 per pound and a storage fee of $0.45 per cubic foot per month, Fulfillment by Amazon frees online sellers from the time and money required to store, pick, pack, ship, and provide customer service for the products they sell online.
The 7% & $60 mth includes CC charges nut it does not actually include the fullfillment. That is a seperate charge per item / pound / month.
Still overall a good deal if your margins are high enough.
I agree that the branding for the shopping cart is very in favor of Amazon.com. But that will probably increase sales.
I don't see much of a deal here? It is a simple website builder tool at the cost of $60 per month. It is the cost of a dedicated unmanaged server hosting package! Why should I pay Amazon the cost of a dedicated server hosting every month only to get a simple website builder tool and, on top of it, advertise Amazon brand on the checkout and customer account signing / updating forms? Anyone, any ideas?
Fulfillment is a very well targeted service, but WebStore is a waaaaay overpriced and an old concept that Amazon needs to significantly upgrade to attract mass attention.
As we begin to give these partners our customers in lieu of more business over the short term we lose our actual business over the long haul don't you think?
It's juts a matter of 'when' before we see other major shopping comparison engines (Shopping, Pricegrabber, NexTag) implement their own checkout engine where they keep the customer isn't it?
That's bad for us small business/site owners because it gives these large sites negoiating leverage with our suppliers when they all of the sudden have a natural distribution channel built in because 100 merchants now sell xyz widget via their commerce systems.
Oh, and if we don't like it guess what... they're not our customers any longer.
Anybody else worried about this?
As we begin to give these partners our customers in lieu of more business over the short term we lose our actual business over the long haul don't you think?
What I need is not the shopping cart and checkout process branded by some big name to increase my credibility. What I need is not their brand. What I need is their service behind the scene to establish my own brand. That's what they refuse to understand!
What the difference between this and the amazon seller stores? They charge 15%, not 7%, but is it the same product now?
Thanks
Oh, and if we don't like it guess what... they're not our customers any longer.
Why aren't the customers your anymore? You will still do the fullfilment, ship the order, etc..Soyou will have all the customer info, they are still doing business with you.
Am I wrong?
Am I wrong?
If your customers do not pay you, they are not your customers. Simple as that. They pay Amazon and that is exactly what checkout process is showing. Moreover, as already mentioned, if they want to create or update their customer account, again, they will land on the Amazon page to fulfill that task.
Since the announcement was two-fold, all the comments about the web stores part make it comparable to eBay Stores and Yahoo! Stores. I'm sorry about the misunderstanding.
The conversion rate can be as high as 50% with good service and promotions. That is what you pay the 15% for :)
If you are not already in Amazon, this may be an opportunity. They will probably not allow you to place books, DVDs, music. If they place your products in their catalog, where will they show them? Products may end up is the marketplace (which i would imagine a Amazon web site product would unbless already sold by an Amazon merchant). Marketplace products do not get into the main Amazon catalog. No one sees them!
Amazon does not show your products all the timee unless a searcher specifically looks for that product. So again, even if you are in the catalog, you may not be seen.
These 2 new services are a great way for Amazon to fill a warehouse and keep hourly workers busy. It is also a way for them to expand their catalog at little or no risk. Once they see a product sells well, POOF! they will offeer it at a lower price then you can and survive.
All in all, I would have to pass.
Having said that, I work for a brand company that similarly shirks mass media advertising, and sells turnkey sites. The issue remains, I think, to bring traffic to our sites. Amazon is not necessarily going to be more successful that any other brand.
The back-end solution is very different with the likes of Amazon and my company. It is all done for the ecommerce business-person. That allows us to concentrate on bringing the customers to the site.
You do not need Amazon to do your order fulfillment.
My business model is web based, sometimes a frightening view. In the long term, I am expanding my model to include solid business strategies with players like Amazon.
This has a rosy scent for me.
The price they're quoting for fulfillment is cheap, but much depends on what they're charging for shipping costs, or if they let you use your own Fedex and UPS accounts.
We currently have our own store and also list things on Amazon, and send questionable customers to Amazon because of their no-chargebacks policy.
Would have to compare Amazon's fulfillment service over what a local charges to warehouse and ship out. With the low margins and rankings on some items, it would not make sense to have it stored in a warehouse and be expensed for. Would not be surprised to see ebay eventually try this with Half.com.
Just like the big guys, always looking for new revenue streams..
