Amazon FBA vs Direct Fulfillment

What is Amazon Direct Fulfillment?

To better aid suppliers, Amazon offers Direct Fulfillment facilities to selected vendors, along with the traditional FBA (Fulfillment by Amazon). To join this program, vendors must already be in the traditional program, and must fill out an application.

Normally, FBA is a system by which vendors ship their products to an Amazon Distribution Center, from where Amazon manages all shipping and returns to the individual customers. Amazon issues bulk order at the beginning of each week. Suppliers are expected to ship the bulk order to one or more centers. This system has many benefits, mainly for smaller vendors, who benefit from not having to manage individual shipping routes to customers. 

However, in the case of Direct Fulfillment, vendors ship their products directly to the customers. The orders are very small and sent throughout the day and week. For larger vendors, this system allows them to take control of the shipping process and allows them additional benefits, such as offering their whole catalog to customers.

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EDI for Direct Fulfillment

While all transactions for Direct Fulfillment can be done within the vendor portal itself, it requires a large deal of work to process the orders one by one, and is prone to manual error. In addition, Amazon requires vendors to be compatible to various types of EDI transactions. Electronic Data Integration (EDI) allows sellers to process orders in bulk without the need for manual data entry and processing, therefore saving countless hours of human labor.

 

Cloud EDI Solutions

Rather than paying tens of thousands of dollars for a custom EDI solution and having countless headaches in maintaining it, using a cloud based EDI solution, like TPSynergy, adds EDI capabilities into your company all while coming at an affordable cost. TPSynergy also integrates to FedEx and UPS, so labels can be printed in bulk. labels.

Contact TPSynergy today to schedule a free demo to learn how TPSynergy can benefit your company.

 

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