Why should you use Amazon Direct Fulfillment | Amosoft
Why should you use Amazon Direct Fulfillment?
Amazon Vendor Central is the platform that Amazon created to distributers and manufacturers to manage their orders, however, Amazon has other platforms for sellers such as Amazon Seller Central and FBA, which is Fulfilled By Amazon.
On Amazon Seller Central, distributers and manufacturers are managing their orders and listing by themselves. Amazon gives the sellers the platform to manage and to sell the products, but all the pricing information such as setting the price for each product is being managed by the seller, not Amazon.
Vendors decide on the markup price for each product and how competitive they want to be. Amazon has nothing to do with product pricing. Vendors can compete against other sellers who sell the same product just like on the free market outside of Amazon and offline. All Amazon does is cut their commission on every order. This can be advantage or disadvantage, depends on each case. In addition, order fulfillment and order shipping is being managed by the vendors, not by Amazon and selecting the best, fastest or least expensive shipping option is up to the vendor and they can negotiate shipping cost with carriers.
With FBA or Fulfilled By Amazon the vendor decide on pricing, however, the inventory is being managed by Amazon. Distributers ship their products to Amazon warehouses DC or Amazon distribution centers ahead of time and once an order being created, Amazon fulfill the orders from their warehouse and ship it to the customer.