Fulfillment Compared: Amazon, Walmart, Shopify

"Ecommerce operators tired of picking, packing, and posting parcels can turn to massive marketplaces and the leading ecommerce platform for help. For years, Fulfillment by Amazon, Walmart Fulfillment Services, and the Shopify Fulfillment Network have helped sellers store inventory, ship orders, and even manage returns. The services share a common purpose of providing ecommerce order fulfillment but differ in structure, at least a little. Understanding those differences starts with a closer look at how each network works."

"FBA's most important feature may be exposure. Items sold on the Amazon Marketplace and fulfilled through FBA display the Prime badge on Amazon.com. The badge is important because about 75% of U.S. Amazon shoppers are Prime members and likely filter for Prime-eligible products. Using FBA begins in Seller Central. Merchants prep inventory to Amazon's specifications and ship it to designated warehouses. Amazon distributes stock across its network and automatically routes orders."

"When customers make a purchase, Amazon employees pick, pack, and ship the order, which is often delivered within one to two days. Amazon also processes returns, with refunds issued directly to the customer. FBA also offers Multi-Channel Fulfillment (MCF), which allows retailers to sell on platforms such as eBay or their own webstores and have FBA deliver the orders for a fee. When combined with the "Pay with Prime" checkout service, MCF shipments enjoy the same ultra-fast deliveries."

Ecommerce operators exhausted by picking, packing, and posting can use major marketplaces and Shopify's platform to outsource fulfillment. Fulfillment by Amazon launched in 2006 and provides significant exposure through the Prime badge, which matters because about 75% of U.S. Amazon shoppers are Prime members who often filter for Prime-eligible products. Merchants send inventory via Seller Central to Amazon warehouses; Amazon distributes stock, automatically routes orders, and handles picking, packing, shipping, and returns, often delivering in one to two days. FBA also offers Multi-Channel Fulfillment for other sales channels and faster deliveries when paired with Pay with Prime. Walmart launched Walmart Fulfillment Services in 2020 amid the Covid surge.

Read at Practical Ecommerce