Entities that supply goods in bulk at discounted prices to resellers who then utilize Amazon’s Fulfillment by Amazon (FBA) service represent a key component of the e-commerce ecosystem. These entities provide inventory sourcing for businesses seeking to leverage Amazon’s expansive reach and fulfillment capabilities. An example includes a company that purchases hundreds of units of a specific kitchen gadget directly from the manufacturer and then sells those units to individuals who list them on Amazon and use FBA for storage, packaging, and shipping.
The significance of these suppliers lies in their ability to streamline the sourcing process, reducing the burden on individual sellers. This allows resellers to concentrate on marketing, customer service, and overall business strategy rather than logistics. Historically, businesses would need to manage their own warehousing and fulfillment, adding significant complexity and cost. This supply chain model alleviates those challenges, making it easier for smaller businesses to compete in the online marketplace.
