Outstanding growth of an organization relies upon the international market expansion and product portfolio. After launching Amazon’s Prime Now services in Europe, a new system designed for assisting sellers on its platform was unveiled, known as Pan-European Fulfilment by Amazon programme.
The company claims that the new program will help sellers, either small or large scale to export products to a large number of Amazon customers throughout the European Union in the most valuable manner. The FBA program comprises of an explicit emphasis on a guaranteed lower delivery costs and faster shipping.
“Pan-European FBA enables sellers to deliver their inventory to a local fulfilment centre for Amazon to take care of the logistics; automatically shipping sellers’ products across its European Fulfilment Network according to the anticipated local customer demand. Amazon will then pick, pack and ship orders to customers from the closest fulfilment centre where the product is available, as well as handling all customer service inquiries for the seller,” Amazon stated in an official press release.
The online retailing giant also highlighted a five-point guide to further understand the Pan European FBA’s operations and functions. The system “Starts” with sellers registering products that fits for the Pan-European FBA.
Meanwhile, enrolled products are ready for shipping to local Amazon Fulfilment Centers, after the inventory were distributed by the company throughout the European Fulfiment Network. These steps are labeled as “Ship” and “Distribute”, respectively. Hence, sellers are not charged when distributions are done.
“Order” and “Fees” are the final stages, in which order implies to placement of product-orders. Logistics will be taken care of the company, at the same time providing fast and reliable delivery from the nearest fulfillment center – where available products are stored.
In the final stage, local fulfilment fee is the only requirement for sellers, which involves a flat fee for each unit based on weight and dimensions. However, there is no European Fulfilment Network cross-border fee at present.
EU Seller Services Director Francois Saugier said, “Amazon’s Pan-European FBA programme will help sellers export to customers across the EU more efficiently than ever before, whilst allowing customers to benefit from faster delivery times and lower shipping costs. By gaining access to millions of new international customers, SMEs are given the opportunity to boost exports and successfully grow their business abroad.”
In addition, the company currently has 29 fulfilment centers distributed in seven countries. Amazon has been actively working on expanding its fulfiment centers over the past year, specifically in Europe.
Thus, as the company has been working towards increasing the number of their service to foreign shores, it is likely that its distribution and fulfilment centers will continue to progress steadily, and shifting of its logistics may even run in-house.
Nomura Maintains Buy Rating
Amazon announced a new research report issued by Nomura, as analysts maintained a “Buy” rating.
Nomura affirmed a price objective of 775 on Amazon’s stock. Analysts estimate the price objective to post higher by 14.31%, compared to the current stock price of 677.96.
About 470,842,000 shares were currently trading at 677.96, with a market cap of 319.21B USD at the time of writing.
It posted a 50-day moving average of 60.11, while it recorded a 200-day moving average of 607.24. The highest stock price settled at 696.44 in the prior year, while its lowest hit 414.55.