
Over the past few years, I have used Amazon.com's fulfillment infrastructure to sell one of my books (The Complete M&A Handbook). It has worked extremely well.
Amazon.com sends me an email to request a quantity. I then send the books to the company's distribution center in Kentucky. At the end of the month, my bank account is automatically credited with my earnings.
It's pretty cool stuff.
Well, now, Amazon.com is moving more aggressively into the fulfillment space. It's certainly a small move. For small- and medium-size businesses, why make the huge investments for this infrastructure?
The system is called "Fulfillment by Amazon" (it's still in beta). Here's how it works: A merchant will send goods to Amazon.com, where they will be stored at $0.45 per cubic foot per month. When there is an order, Amazon.com will deal with the headaches of stuff like packing, shipping and even returns. The fees for this: $0.50 per item and $0.40 per pound.
Given the large base of merchants in its system, Amazon.com should get immediate traction on the fulfillment services. In fact, this is really a must-have for merchants – and now it can be done cost-effectively.
Also, it may help give Amazon.com a competitive edge against many e-commerce competitors, such as eBay, Yahoo and even Google.
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.











Reader Comments (Page 1 of 1)
9-20-2006 @ 4:14PM
Randall said...
Tom, they also announced WebStore by Amazon for small business. Perfect for the disenchanted eBay store sellers. Here is some additional information.
http://auctionbytes.com/cab/abn/y06/m09/i20/s02
Sheldon, Brian, Melly and Graham, here is a large competitor that is going directly for eBay's Stores business. Store Sellers: Amazon has the buyers!
This could get interesting. My suggestion is that every eBay store Seller needs to look into this even if only to increase your exposure across the web.