Is Amazon E‑Commerce? Marketplace, Retail, and Logistics Explained
Is Amazon e-commerce? Yes-and more. Clear, people-first breakdown of Amazon as marketplace, retailer, logistics, ads, and what that means for shoppers and sellers.
Starting to sell on Amazon feels exciting, but the moment you get an order the real work begins. How do you get that product from your doorstep to the buyer’s door without blowing your budget? Below are the steps most sellers overlook, plus simple tricks to keep your shipping smooth and affordable.
Amazon offers two main ways to get products out: Fulfilment by Amazon (FBA) and Fulfilment by Merchant (FBM). With FBA you ship bulk inventory to an Amazon warehouse and they handle picking, packing, and delivery. It’s fast for the buyer, but you pay storage fees and handling costs. FBM means you keep stock at home or a local warehouse and ship each order yourself. This gives you control over packaging and costs, but you must meet Amazon’s delivery promises.
Ask yourself these quick questions: Do you have space to store a few hundred units? Can you ship 1‑day packages reliably? If you answer yes, FBA usually wins. If you’re just testing a product or have bulky items, FBM saves money and avoids unnecessary storage fees.
Whether you use FBA or FBM, shipping rates can eat your profit. Here are three proven ways to cut costs:
1. Compare Couriers. UPS, FedEx, DHL and even the Royal Mail have different price tiers for 5‑lb parcels. Use a rate‑calculator tool to see which carrier is cheapest for your typical weight and destination. Remember, the cheapest option might have longer delivery windows – balance price with the Amazon delivery promise.
2. Use Flat‑Rate Boxes. If your product fits in a standard box, flat‑rate services from UPS or USPS can be cheaper than weight‑based pricing. This also simplifies packing – you always know the cost before you weigh the package.
3. Pack Light, Pack Tight. Extra padding feels safe, but each ounce adds cost. Use bubble wrap only where needed and choose a box that snugly fits the product. A tighter pack reduces dimensional weight charges, especially on international shipments.
Another tip: if you ship a lot of small items, consider a regional carrier that offers next‑day service within the UK. These services often have lower rates than the big names because they focus on a smaller geography.
Beyond cost, think about reliability. A cheap carrier that drops packages or misses cut‑off times will hurt your seller rating. Keep a short spreadsheet of carrier performance – note missed deliveries, damaged goods, and actual costs. Over a month you’ll see patterns and can switch to the most dependable provider.
The last mile – the final stretch from the local depot to the buyer’s door – is where most delays happen. Here’s how to stay ahead:
When you know the exact time a courier stops delivering in your area, you can plan your workday around it. No more scrambling after hours or paying extra for an urgent pickup.
Putting these steps together – choosing the right fulfillment, trimming shipping costs, and mastering the last mile – creates a solid foundation for selling on Amazon. Start small, track every metric, and tweak as you grow. Your customers will notice the faster delivery, and your profit margin will thank you.
Is Amazon e-commerce? Yes-and more. Clear, people-first breakdown of Amazon as marketplace, retailer, logistics, ads, and what that means for shoppers and sellers.