Amazon Exec On Outsourcing Fulfillment

Every ecommerce merchant needs to address, at least in some capacity, the issues of satisfaction. 1 merchant who does this in a big way is Amazon.com. Amazon now offers its fulfillment and warehousing expertise to any ecommerce merchant via its “Fulfillment by Amazon” support. To describe this service, and how it may help smaller ecommerce merchants, Practical eCommerce recently spoke with Tom Taylor, vice president of Fulfillment by Amazon.

PeC: Can any merchant outsource his fulfillment and/or warehousing to Amazon’s fulfillment services?

Taylor: “Absolutely, yes. We originally started with the notion of Fulfillment by Amazon soliciting to our customers who really wanted to have a better shopping experience, but we knew that the sellers, ecommerce merchants, they sell on many varied stations, possibly Amazon, possibly other stations and we knew it to make Fulfillment from Amazon persuasive, we have allowed satisfaction for any channel.”

PeC: Does a merchant have to use Amazon’s other services to use your fulfillment services?

Taylor:“No, they don’t, although… we certainly discover that the moment you are already using Fulfillment by Amazon, perhaps you may too sell on Amazon, but it’s not required.”

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PeC: Walk through the operational difficulties. A merchant has a shopping cart. How can order information go from the merchant (if a customer places an order) to your fulfillment services?

Taylor:”We have got three unique ways an ecommerce site could communicate with us. They could locate an order and process payment within their own system and then enter what we call seller basic, and it’s a user interface that a merchant could use kind of one by one orders. Additionally, we also have feed support along with APIs for some larger sellers which may want to incorporate mechanically with us.”

PeC: Many merchants have third party order management applications and/or accounting packages. Do you sync with some of those?

Taylor:“During APIs or feeds, depending on the bundles that they have, they could give us the request for the shipment. Also, we’re working with a couple integrators to provide that support for some of the more popular packages.”

PeC: You have a variety of warehouses across the country and around the world. How can you choose which warehouse a merchant’s products will endure?

Taylor:“It is a relatively simple algorithm. We really look to lower the cost to the merchant for their inbound transport to us.”

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PeC: How does your pricing system function?

Taylor: “Our pricing is always available publicly at Fba.amazon.com. It’s there. It’s driven around a weight and transport speed. We don’t have any setup cost. We don’t have any getting cost. Therefore, it’s in a very scalable pricing mechanism. I’ll just give you an example. In case you were selling, say, a 2-pound, $200 camera, it’d cost you about $2 to execute the fulfillment and when we’d been doing the transportation for your own benefit, it would be $4.75 for routine shipping. Therefore, if you look it up on the table, it’s extremely predictable and very straightforward and easy to use.”

PeC: With Amazon’s volume of transportation, will a merchant save shipping costs?

Taylor:“It’s contingent upon the circumstance. We certainly feel our pricing is competitive. It isn’t simply the size of this size or business of our shipping. You mentioned about the different fulfillment centers, which we have around the US and around the world. If Amazon can get your stock very close to a client, I’ll save on shipping and this is another substantial benefit of Amazon.”

PeC: Anything else on your mind as it relates to fulfillment and ecommerce?

Taylor:“There are two things. The first is… international growth. Fulfillment by Amazon works in Japan, Germany, U.K., and France where we have sites and fulfillment centers there and we’re starting to see an assortment of merchants which are saying,’Wow. I never would have thought I might have been moving to the Japanese market and I could if I use Fulfillment by Amazon.’ Last, we are growing Fulfillment by Amazon and we’ve got tens of thousands of merchants today, we’re likely to continue to grow that, but it is available for merchants to try out for free after a rebate, at Fba.amazon.com.”

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Legal:’Terms and Conditions’ Protect Your Own Internet Business

So you’ve your ecommerce website up and running, and you wonder if you’ll require any special terms and conditions to govern transactions on your site. The answer is yes. Because if a problem should arise, having terms and conditions can help resolve that problem in your favor.

Before the customer purchasing anything from you, make certain that they check a box agreeing to the terms and conditions. This will bind the consumer to a legal and affordable terms. The purpose isn’t to trap or trick a customer but instead to enable both the customer and company to agree in advantage to terms.

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Listed below are examples of the categories (with suggested text) you need to think about when drafting terms and conditions. These examples demonstrate the normal legal language for website terms and conditions. You may not need them all for your particular website and sometimes you may want to add more courses or add more information per course.

Use of the website –By accessing the website, you warrant and represent to the website owner that you are legally entitled to do so and to use information made available via the website.

Trademarks–The trademarks, names, logos and service marks (collectively”trademarks”) displayed on this website are registered and unregistered trademarks of the website owner. Nothing contained on this website should be construed as granting any license or right to use any trademark without the prior written permission of the website owner.

External hyperlinks —External links may be provided for your convenience, but they are beyond the control of the site owner and no representation is made as to their content. Use or reliance on any external links and the content thereon provided is at your own risk.

Warranties–the website owner makes no warranties, representations, statements or guarantees (whether express, implied in law or residual) regarding the website.

Disclaimer of liability–The website operator won’t be responsible for and disclaims all liability for any loss, liability, damage (whether direct, indirect or consequential), personal injury or expense of any nature whatsoever which may be suffered by you or any third party (including your company), as a result of or which may be attributable, directly or indirectly, to your access and use of the website, any information contained on the website, your or your company’s personal information or material and information transmitted over our system. Specifically, neither the website owner nor any third party or data or content provider shall be liable in any way to you or to any other person, firm or corporation whatsoever for any loss, liability, damage (whether direct or consequential), personal injury or expense of any nature whatsoever arising from any delays, inaccuracies, errors in, or omission of any share price information or the transmission thereof, or for any actions taken in reliance thereon or occasioned thereby or by reason of non-performance or interruption, or termination thereof.

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Conflict of phrases —If there is a conflict or contradiction between the provisions of these website terms and conditions and any other relevant terms and conditions, policies or notices, the other relevant terms and conditions, policies or notices which relate specifically to a particular section or module of the website shall prevail in respect of your use of the relevant section or module of the website.

Severability–Any provision of any applicable terms and conditions, policies and notices, which is or becomes unenforceable in any jurisdiction, whether due to being void, invalidity, illegality, unlawfulness or for any reason whatever, shall, in such jurisdiction only and only to the extent it is so unenforceable, be treated as void and the remaining terms of any applicable terms and conditions, policies and notices shall remain in full force and effect.

Applicable laws (choice of venue and forum)–Use of the website shall in all respects be governed by the laws of the state of [insert your state], U.S., whatever regulations which might be applicable under principles of conflicts of law. The parties agree that the [insert state] courts located in [insert county] county, [insert country ], will have exclusive jurisdiction over all controversies arising under this agreement and agree that venue is appropriate in those courts.

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