Amazon Shipping Programs Explained

I am starting a series on Amazon Shipping Programs for the benefit of new sellers. This is one of the questions I get asked most often by new sellers who take Seller Square 's Amazon Growth Management Services. 

Amazon offers various shipping programs to cater to different seller needs and customer expectations. These programs are designed to streamline shipping processes, ensure timely deliveries, and offer various benefits to both sellers and customers. I will be starting with the most basic service, which is the Self Ship Service and eventually explain their most advanced shipping programs for large sellers such as Amazon Multi-Seller Flex and Amazon Smart Connect Program. 

Self Ship:

1. What is Self Ship?

This is the most basic type of shipping service. Self Ship allows sellers to handle their own shipping and delivery processes. It provides flexibility and control over the shipping process.

2. When should I use Self Ship?

A. When the seller has just started and wants to use the cheapest option possible such as local couriers and India Post. 

B. When the shipment is bulky such as furniture, it is cost effective to use surface transporters with expertise in furniture. 

C. When the shipment is hazardous and needs special handling (which is not provided by Amazon Transportation Services in general). 

3. Do products shipped under Self Ship qualify for Prime badge?

Products fulfilled through Self Ship generally do not qualify for prime badge. 

4. What is the cost of Self Ship?

The cost of Self Ship is as per the prices charged by the shipper you have selected. 

5. How to process Self Ship orders?

The Self Ship orders need to be processed on the Seller Panel and the tracking details need to be updated once the order is shipped. This is slightly cumbersome process.

6. How to process returns for Self Ship orders?

The customers can choose to ship the Self Ship order on their own or through Amazon return or file for A to Z claims subject to Amazon’s return policy. 

7. What are the advantages of the Self Ship option?

A. Control Over Logistics: Self Ship gives sellers full control over their shipping and fulfilment operations. This control allows for customised packaging, labelling as per the seller's specific needs and brand identity.

B. Cost Savings: Sellers who are capable of efficiently managing their logistics can potentially reduce shipping costs compared to using Amazon's fulfilment services. They have the flexibility to negotiate shipping rates with carriers and choose the most cost-effective options including India Post, which is efficient and cheap and often overlooked by Ecommerce Sellers. 

C. Fulfilment Flexibility: Self Ship is ideal for sellers with unique or specialised products that may not fit into Amazon's fulfilment centres or require special handling. Sellers can maintain product quality and packaging control.

D. Local Market Focus: Self Ship is well-suited for sellers who primarily serve a local or regional market. It allows for quicker deliveries and personalised customer service for nearby customers. There is a program called Local Shops to take advantage of local markets. I will write  a separate post on that. 

E. Customer Relationships: Self Ship enables direct customer interactions, allowing sellers access to the most important asset - to build and maintain stronger customer relationships and provide a more personalised shopping experience. When Amazon handles shipping every contact of customer is handled by Amazon and masked from the Seller. 

F. Shipping Speed Control: Sellers can prioritise certain orders or customers and choose the shipping methods that best suit their business model. This can be particularly beneficial for sellers with perishable or time-sensitive products.

8. What are the disadvantages of the Self Ship option?

A. Logistical Challenges: Self Ship requires sellers to manage their own logistics, including packing, labelling, and shipping. This can be a significant operational challenge, particularly for smaller sellers or those without a well-organised shipping infrastructure.

B. Inconsistent Service: The quality of the shipping service can vary depending on the shipping service provider’s capabilities. Inconsistent packaging, delayed deliveries, and other issues can lead to negative customer experiences.

C. Prime Ineligibility: Amazon reduces the visibility of products without the prime badge indirectly and even customers prefer products with prime badge, that comes with Amazon’s guarantee and trust. 

D. Returns Handling: Dealing with returns can be complex and costly. Sellers using Self Ship must have a process in place for managing returned products, including assessing their condition for resale.