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News Stories Wednesday, September 20, 2006   
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Amazon offers smaller distributors new fulfillment and storefront options


As a way to cement its ongoing relationship with shoppers and smaller manufacturers and distributors that supply it with inventory, Amazon.com is rolling out new services.

Among the new services is Fulfillment by Amazon, which enables businesses to use Amazon’s order fulfillment and post-order customer service infrastructure. The new program also allows Amazon.com customers to receive the benefit of Amazon.com shipping offers such as Amazon Prime when buying from third-party sellers using Fulfillment by Amazon.

"We created Fulfillment by Amazon because it is good for Amazon.com customers, and therefore great for our third-party sellers," says Joe Walowski, product manager, Fulfillment by Amazon. "With membership in Amazon Prime growing every day, more and more Amazon.com customers want a great deal on shipping and to receive their orders quickly. Fulfillment by Amazon makes it possible for sellers to offer Amazon.com customers this convenience."

Under Fulfillment by Amazon, the retailer, No. 1 in the Internet Retailer Top 500 Guide to Retail Web Sites, will charge a handling fee as low as 50 cents per item plus 40 cents per per pound and a storage fee of 45 cents per cubic foot per month.

Through its third-party services arm, Amazon Services, the company also is introducing WebStore by Amazon. The program enables businesses to create their own privately branded e-commerce sites using Amazon technology. Businesses can choose from a variety of web site layout options and can customize their sites using their own photos and branding. WebStore by Amazon users pay a commission of 7% for each product purchased through their site and a monthly fee of $59.95. The individual commissions include the cost of credit card processing and fraud protection.

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