Amazon is expanding its program allowing independent sellers to use its 20 distribution centers around the world to ship packages. For the first time, the company is allowing people who sell items on other, competing services (say, eBay) to use Amazon's shipping resources.Amazon's Fulfillment by Amazon program has been available since last fall, but it was unavailable to those selling their goods through web services other than Amazon.
Basically, the service allows small stores to send their inventory to Amazon for storage. When a customer purchases an item, Amazon will pull the product from inventory, pack it and ship it. Sure, you have to pay to ship your goods to Amazon and again to the customer. But if you don't have room in your home or small shop to store your inventory, it might be cheaper than buying more retail space.
While part of eBay's success is based on the fact that the company doesn't need its own shipping or storage space, Amazon already had 10-million feet of space for its own shipping operations. It can leverage some of those resources to help small businesses while making a profit.
Basically, the service allows small stores to send their inventory to Amazon for storage. When a customer purchases an item, Amazon will pull the product from inventory, pack it and ship it. Sure, you have to pay to ship your goods to Amazon and again to the customer. But if you don't have room in your home or small shop to store your inventory, it might be cheaper than buying more retail space.
While part of eBay's success is based on the fact that the company doesn't need its own shipping or storage space, Amazon already had 10-million feet of space for its own shipping operations. It can leverage some of those resources to help small businesses while making a profit.
