Amazon Basics
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What is “FBA”?

Lesson 7 Chapter 1 Module 2

(Start of Day 3)

When you choose to use the Amazon Marketplace to display and promote your products, you have two options with regards to fulfilling orders. You can either:

  • fulfill orders yourself, in which case we talk about "Fulfillment by Merchant" (FBM), or
  • let Amazon fulfill orders for you, in which case we talk about "Fulfillment by Amazon" (FBA).

You'll remember we talked about how Amazon opened its doors for people to sell second-hand goods on their platform back in 1999. You'll also remember it was called "zShops" and it later became the Amazon Marketplace, as it's known today.

The Marketplace simply refers to the platform on which Amazon allows you to sell your product(s). Currently, Amazon has 16 Marketplaces:

When you are ready to start selling on Amazon, you will register for the Amazon UK Marketplace.

We'll teach you how to open your Amazon UK Sellers Account step-by-step in our Advanced Training Programme. Registering a Sellers Account is one of the last steps involved in developing your online business. There are important things to have ready before you open your Amazon Sellers Account. So please don't try and open your Sellers Account in the meantime. If you do, you'll make mistakes and risk being banned from Amazon for life.

The Amazon Marketplace and the Fulfillment by Amazon (FBA) services are not the same thing.


AMAZON MARKETPLACE

  • This is WHERE you sell products.

FULFILLMENT BY AMAZON (FBA)

  • This is HOW you deliver products.

In other words, you can use the Marketplace without using FBA. You can even use FBA without selling on the Amazon Marketplace. If you use Amazon's fulfillment services without selling on their platform, it's called Multi-Channel Fulfillment (MCF).

While it's good to know that you can use these services separately, we will not discuss any of that. At ecomMEMBER, we focus exclusively on using the Amazon Market and Fulfillment by Amazon (FBA) services together.

LET'S RECAP

"FBA" stands for Fulfillment by Amazon.

Fulfillment is a service whereby a company (Amazon) stores your products (inventory) in their warehouse and ships it to your customers whenever they (your customers) order your product(s).

Ready to learn how FBA works? Head over to the next lesson.

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