Amazon FBA – How to sell food supplements on Amazon

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In this article we will break down the complete path that food supplements follow from the moment a customer places an order on Amazon until its final delivery, using the Amazon FBA (Fulfillment by Amazon) logistics system. Throughout the course, we will analyse the use of tools that the Marketplace itself puts at our disposal, such as real-time tracking and inventory management, which allow us to optimise each step of the process. We will also see how key data is recorded and analysed, such as stock control and shipping status, ensuring that the product reaches the end consumer within the agreed deadlines and conditions. Finally, we will highlight the importance of compliance with specific regulations in the food supplements sector, such as the HACCP system (Hazard Analysis and Critical Control Points), which helps to ensure that food safety and quality standards are maintained throughout the process. The implementation of HACCP ensures that from storage in Amazon’s logistics centres, through to preparation and dispatch, the traceability and transparency required for this type of product is maintained.

What is Amazon FBA?

Amazon FBA (Fulfillment by Amazon) is a service that allows sellers outside its Marketplace to store their own products in Amazon’s distribution centres. Once the seller sends their products to these centres, Amazon takes care of the complete logistics management:

  • Storage
  • Order preparation
  • Packaging
  • Sending
  • Customer service

This means that when a customer places an order for a product managed by FBA, Amazon is in charge of the entire process, including handling returns and queries. In addition, complementary services such as Prime shipping can be offered through FBA, which increases visibility and customer visibility and confidence in these products. For sellers, FBA not only reduces operational burden and impacts logistics costs, but also allows them to leverage Amazon’s infrastructure and reputation. By outsourcing logistics, sellers can focus on other key areas of their business, such as different areas of marketing or new product development. In addition, FBA also works on a large scale, facilitating international expansion through Amazon’s global logistics networks. However, while FBA offers many benefits, it is important for sellers to consider the associated costs, such as storage and handling fees, in order to maximise the profitability of operations. The process of operating Amazon FBA consists of a number of steps. Below, we will detail each stage and its requirements.

Initial phase. Entry and storage of the products in Amazon FBA’s logistics centres.

amazon fba initial phase In order for a customer to purchase a product, the manufacturer or distributor of the food supplement must first ship its inventory to one of Amazon’s warehouses. This process involves the following steps:

  • Creating shipping labels: Using an inventory management system such as Amazon’s own Seller Central, labels are generated for each box or item. These labels include unique barcodes that allow for detailed tracking of the product throughout its journey.
  • Product batch: Food supplement vendors must provide detailed information on the batches of each consignment, which is vital to ensure traceability, especially in case of product recalls or food safety issues.
  • Quality: Products are inspected to ensure that they meet promised quality standards, including labelling, expiry dates and other health regulations.

The data stored in the computer systems up to that point are the batch number, expiry date, unique product identifier (SKU), quantity received by the logistics centre and the condition of each product (whether it is new, used, reconditioned, etc.). Once the products are received, Amazon places them in designated areas within its logistics centres. Each item is assigned to a specific location within the warehouse, and this information is recorded in the inventory management system (WMS), which helps to quickly find the product when preparing a shipment.

Purchasing phase: When a customer places an order

amazon fba purchase phase When a customer makes a purchase through Amazon, the OMS order management system starts to execute the entire internal process until the product leaves the Marketplace’s logistics facilities. First, the system checks if the product is available in the distribution centres, then it checks the expiration date according to the selected lot, and finally it stores the customer data including addresses and shipping preferences. After confirming the order, the inventory management system (WMS) informs the warehouse team so that they can proceed to collect the product. This process consists of several steps such as the selection of the product and its packaging, the generation of the shipping label and a final check to ensure that everything is correct.

Final phase: Shipment, delivery and after-sales service

amazon fba shipping Once the product is checked and packed, it is moved to the shipping area, where Amazon works with several carriers. Amazon’s system automatically updates the status of the order to ‘in transit’, allowing the end customer to track the shipment in real time. Once the carrier delivers the package to the address provided by the customer, the delivery is finalised. The system internally marks the order as ‘delivered’ and an automatic notification is sent to the end customer informing them of receipt. This notification can come in the form of an alert via the mobile App, an informative e-mail or voice information via the ‘Echo’ devices. Even if the food supplement finally reaches the recipient, the sales process does not end there. If the customer decides to return the product or report a problem, such as a defective or expired product, Amazon handles the return through its system. The returned item is inspected by the logistics centre’s quality control team and the inventory is updated again based on the condition of the product.

Integrated logistics management with Amazon FBA

As we have seen throughout this article, Amazon FBA represents a comprehensive solution for the logistics, sales and after-sales of food supplements. Using these processes ensures that any eventuality, such as a safety issue or product recall, can also be handled quickly and accurately. In addition, the correct application of the HACCP system allows us to identify and control potential risks, guaranteeing that the end customer receives a safe and quality product. As Amazon SPN partners, LegaleGo can help you with the regulatory compliance process of your food supplements, implementing HACCP systems in accordance with the law, so that you can focus your efforts on what you do best: selling.