Operations of Amazon

MarketplaceSijo Emmanuel

Objectives How to become a seller in Amazon.com

How to make use of amazon services

Considerations to increase potential visibility of products

Fulfillment by Amazon (FBA)

Acting as a broker using Amazon Marketplace Web Services Fulfillment by Amazon (FBA)

How does the feedback mechanism works in Amazon.comHow is it used to calculate seller rating

Improving potential feedback on your product & online reputation

Understand payment and refund processes

How to become a seller in Amazon?Register your seller account using

Credit card

Phone number

Company registration details

Primary contact person information

Beneficial owner information

Bank account information

Selling on Amazon 5 main steps for selling in Amazon.com

Amazon Services: Fulfillment by Amazon FBA gives access to Amazon’s world-class logistic resources

Fast, free, delivery options for your products and trusted and acclaimed customer services in local language.

How does it work??Send your choice of products to Amazon fulfillment centre and they will store your

inventory, pick, pack and ship it when customers order

Integrated with Amazon selling account and offers a flexible, pay-per-use model without minimum inventory requirements

FBA products are eligible for prime so as a seller you can gain access to millions of most active and loyal customers

Fulfillment by Amazon: Benefits Increased competitiveness and optimised sales

Makes your products more visible to customer

Provides 24x7 Amazon’s acclaimed customer service

Fast and free delivery options with amazon prime

Business scalability with ease Flexible pay-per-use model that scales up and down as your business needs change

No minimum inventory requirements, subscription fees or contracts

Use FBA on the products of your choice

Own and control the quantity you store with Amazon

Pay only for order fulfillment and storage space used

Fulfill order from multiple channels Fulfil orders from your own websites or other channels

Offer faster delivery options to the customer

Directly integrate with your sales platform

Fulfillment by Amazon: Benefits Increase customer satisfaction

Free and fast delivery

Consolidated shipments into fewer number of shipments possible

24x7 customer service for delivery related issues in local language

Gift-wrapping option to the customer at no extra cost to the seller

Amazon handles customer returns and refunds

Leverage Amazon’s world-class logistics Ensures your products are stored safely

Orders get fulfilled even you are on vacation

Sell globally with one seller account (only in Europe)Fulfill order from 5 Amazon marketplaces

(Amazon.co.uk, Amazon.fr, Amazon.it, Amazon.es)

Using single seller account & one local inventory export to million customers across Europe

Customer service and returns are handled by Amazon in the local language

Amazon Marketplace Web Service (Amazon MWS) Integrated web service API that helps Amazon sellers to

programatically exchange data on listings, orders, payments, reports and more.

Amazon MWS fulfillment API sections include operations that allows sellers to access Amazon’s world class fulfillment capabilities through a simple web service interface.

Seller can programmatically send order info to Amazon with instructions to fulfill customer orders on seller's behalf (act as a broker).

XML data integration with Amazon enables higher levels of selling automation, which helps sellers grow their business

Amazon Marketplace Web Service (Amazon MWS) ●Amazon MWS helps sellers to increase selling efficiency, reduce

labour requirements and improve response time to customers

●Sellers can directly integrate their systems with the FBA systems using Amazon MWS fulfillment operations to:

○ Efficiently create and send shipments to Amazon

○ Automatically send order info to Amazon for orders placed in non-Amazon sales channels

●This functionality contained in three key API sections:○ Fulfillment inbound shipment

○ Fulfillment outbound shipment

○ Fulfillment Inventory

Amazon feedback mechanism Calculates seller feedback scores using 1-to-5 star system and

percentages of positive, neutral and negative ratings.Feedbacks are displayed on seller’s public profile

Buyers can feedback by commenting and rate using 5-star rating system

Positive feedback: 5 or 4stars

Neutral feedback: 3 stars

Negative feedback: 2 or 1 stars

Amazon display seller's positive feedback percentage to buyer on the listing page

Feedback percentage is calculated using:SUM (positive feedback ratings) / SUM (all feedback ratings)

Seller stars displayed is an average rating calculated using:SUM (all feedback values) / SUM (all feedback ratings)

How is seller rating calculated?Order Quality score: orders in last 365 days is assigned a score

Order fulfilled without any problems receives 100 points

Order shipped late receives 0 points

Order resulted in an A-to-z guarantee claim received -500

Order with multiple problems: most significant problem is counted towards score

Order with truly exceptional service receives bonus 10 point for a total score of 110

Score for all order from past 365 days is totaled, and an average score is computed by dividing total points by the number of orders.

A time weighted average is applied to determine final score Since performance on recent orders are more important than those in the past

Most recent mature orders count the most and have greatest impact on final score

Improving seller rating & online reputationTo improve online reputation seller must not have any negative

feedback on their orders and should qualify for bonus point with following criteria:

Order shipped with a valid tracking number

Order delivered by the minimum promised arrival date

Order delivered within 3 working days after it's placed

Order does not result in refunds or concessions

No event listed for the order quality score

Respond to buyer enquiries within 24 hours

Avoid cancelling orders unless requested by buyers

Avoid letting orders expire

Confirm the dispatch of your orders by the expected dispatch date

High scores on most recent orders as it counts most and have greater impact on final score

Amazon Payments Amazon records transaction in seller account when a payment is

received from a buyer and notifies the seller via email

Disbursable amount is paid directly into seller bank account every two weeks, seller just need to post the item to buyer

Amazon guarantees transaction so seller don’t have to worry about chargebacks directly from customers

Sellers can view their statements in seller account page

Amazon sets payment limits to prevent misuse of the service Maximum amount for an individual transaction is £2000

Amount seller can receive in a given time period various based on evaluation of their account

Amazon Returns & Refunds A buyer can return product and request for a refund if its is defective,

damaged or materially different The buyer must contact within 30 days of purchase and return within 45 days

Return of items due to “buyer remorse”Buyer can return item without a reason if informed to seller within 30 days and they

are required to refund the cost of the item and shipping charge

Amazon are unable to initiate refunds on seller's behalf. However, there are tools available for the seller when a situation arise to necessitates a refund

Issuing a refund: can be full or partial

To refund full amount, select full refund tab in refund order section of the item

To refund partial amount, select partial refund tab

Refund issued will be processed immediately by Amazon

Lessons learnt & ConclusionsAmazon makes it easier to become a seller with various online

services

Fulfillment by Amazon service can be used by sellers to ease the selling process and make products more visible to the customers

Seller only need to send inventory to Amazon fulfillment centres and rest of the selling process is taken care by Amazon itself, including customer service and returns.

Seller can make use of Amazon Web Services integrated with FBA to:Efficiently create and send shipments to Amazon

Automatically send order info to Amazon for orders placed in non-Amazon sales channels

Seller don’t need worry about payments and refunds as it’s all taken care by Amazon

Amazon gives full freedom to the seller with refund when a necessary situation occurs with online tools to fully and partially refund the amount.

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