Operations of Amazon marketplace
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Transcript of Operations of Amazon marketplace
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.
Thank you