Amazon’s new twist on the order fulfillment business

Written by Toni DasGupta on March 20th, 2008 | Posted in News, companies

Amazon continues to amaze as it innovates on taking products, services and processes that have already made it good money, and throws it out in the marketplace for other businesses and entrepreneurs to use.

The latest in its cache of outsourced products and services is a new API that is designed for its "Fulfillment by Amazon" pack and ship service that was introduced in 2006.

This is how it works.  A business physically ships its inventory to Amazon to store.  When a product is sold, the seller notifies Amazon where the product gets packaged and shipped to the customer.  This is clearly a win-win strategy.  The small-business owner outsources his warehousing and shipping (and some cost, of course) while Amazon gets a client into their ecosystem where they can cross sell everything from pay-per-click advertising to its storefront related services.

Fulfillment by Amazon API allows businesses to automate the order processing through Amazon

According to Amazon handling fees start at $0.50 per item plus $0.40 per pound with a storage fee of $0.45 per cubic feet per month and saves sellers the time and money needed to store, pick, pack, ship and provide customer service for the products sold online.

The new Fulfillment by Amazon API allows businesses to automate the order processing through Amazon. Order labeling, shipping and tracking and can now be followed with minimal  human intervention.

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One Response to “Amazon’s new twist on the order fulfillment business”

  1. By order fulfillment on Mar 21, 2008 | Reply

    I’m Nate and I’m with Shipwire.

    figure if you posted the original story you may want to see another provider.

    http://www.shipwire.com

    We’ve had a full API exposed for quite some time.

    Many established shopping cart connections. Also, integrations with PayPal, eBay auctions, Google Checkout and Quickbooks.

    We even offer a Free Trial. Try us out. No credit card needed to connect and try the warehouse.

    http://www.shipwire.com/trial

    Multiple warehouses in Los Angeles, Chicago, Vancouver, Toronto and UK (beta).

    Ship from multiple warehouses means faster delivery and much lower shipping prices.

    To prove this, we built a widget that looks up shipping rate charges for your location verse the warehouses. Go to Shipwire.com/pricing and hover over the orange Tag at “DHL”. Input your current ship from location and see how much you would save. Then see if you get 1-2 day delivery for the price of ground if you use the full warehouse network.

    Consider trying us if your looking for storage and shipping.

    cheers,

    Nate

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