02fulfillment by Amazon Presentation

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Fulfillment ByAmazon

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With Fulfillment By Amazon (FBA), well show you how to:Lower your costs:Position yourself as a premium seller:Work smarter, not harder:Keep customers happy:

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TimeYou can only list, sell, pack, and ship somany orders in a day. What would you doyou all of a sudden had 100, 200, even 50orders in a day?

Do you have the time to pick, pack, labeland ship all these orders?

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Space

You can only store so much stuff!Can you store enough product to handlethis many orders?Do you have enough storage space to

store enough product to ship 100, 200, ev500 orders in a day?

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FBA removes both of these barriers!

Amazon will store your products insecure, climate controlled warehouses anhave the capacity to ship all of your ordermatter how many orders you receive.

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Monthly Storage Fee BreakdownJan-Sept: $0.45/ftOct-Dec: $0.60/ft

First 60 days freeAmazon calculates the volume of youritems to the 1/100 of a cubic foot.

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Box 1 6x4x3Calculated at 0.10 cubic feet (by Amazon)

Jan - Sept storage fee: $0.45 x 0.10 = $0.05/monthOct Dec storage fee: $0.60 x 0.10 = $0.06/month

Yearly storage fees: $0.63Box 2 8x8x4Calculated at 0.18 cubic feet (by Amazon)


Yearly storage fees: $1.05Box 3 - 11x8x4Calculated at 0.27 cubic feet (by Amazon)


Yearly storage fees: $1.56

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You dont have to send all of yourinventory to FBA at one time.Manage your FBA storage fees by

replenishing your FBA inventory as your pMaintain a 60-day supply and you wontpay any FBA storage fees.

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FBA is not just for Amazon sales. You canuse FBA to outsource the storage of youritems as well the entire order process (pic

packing, labeling, & shipping) all for less twhat you are paying now.

Its called Amazon

Multi-Channel Fulfillment

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One way to describe Amazon Multi-Channel Fulfillment is to compare it to dropshipping;but make no mistake, it is not dropshipping.Multi-Channel Fulfillment is using Amazons FBA service to fulfill your own orders with yourown inventory for sales from other online channels (example: eBay)

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With dropshipping, the products are notyours until you make a sale and submit thorder.

With FBA, the products that you areshipping are YOUR PRODUCTS. You controland you set the price.

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D. Pick & Pack FeeE. Shipping Method FeeF. Shipping Weight Fee

Additional Fees:No Commission!Inbound Shipping Fee$0.12 - $0.25 per pound

I ship 50 lb. boxes to Whitestown, Indiana for$13I ship 50 lb. boxes to Irving, TX for $6Monthly Storage Fee

Jan-Sept: $0.45/ftOct-Dec: $0.60/ft

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You can use this to your advantage twoways.

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How Incredibly Powerful!

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Lets compare the transactionon an identical item sold on eBay.

One seller stores all his products at

home including boxes, tape, packing mateand labels. They cannot ship orders unlessthey are home and they have to go to thepost office or UPS every time they get anorder.

The other seller uses FBA Multi-ChannelFulfillment.2/18/11


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eBay listing fees: $0.50 (7 Day Listing, No Subtitle)Shipping materials: $0.50 - $1.50UPS Shipping: Orlando to Seattle(residential):

$9.52(Daily Pickup)

- $13.59(Published Rates)

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eBay listing fees: $2.00 (30 Day Listing, Subtitle)Customer receives 2-Day Shipping with a value of $25.41 - $32.37This is why you can charge a higher price; because you are offering apremium service

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Free 2-Day Air shipping is a huge added value that customers can understandThis allows you to charge a higher price than your competitorsYou can use eBays Get It Fast option

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We making $17.30 - $22.60 more on each transaction.35.1% - 45.2% higher margins.Business is a game of margins, not volume.Remember to count the cost of your time and efforts.

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Not only do we make more money andearn higher margins on each transaction,we do less work and our customers get th

products 2-3 times faster.We can ship this way to Hawaii & Alaska!

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We can place FBA orders as late as 4:30PM (maybe even later) and they will ship tsame day.

Can your customers order at 4:30 PMand get their item delivered THE NEXT DA(even Saturday) anywhere in the US for $2

Can you do this from Starbucks?

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Imagine the possibilities of never havingto put your online business on hold.

You can go out of town or on vacation

anytime and you never have to stop sellinYou can place FBA orders on the beachor from Europe!

Less work, higher margins, happiercustomers.

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02fulfillment by Amazon Presentation

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