FBA (Fulfillment by Amazon)

Fulfilled by Amazon listings are listings where Amazon fulfills orders using inventory in its own warehouses. The inventory used to fulfill these orders is sent to Amazon by Amazon sellers prior to the orders being placed.

There are a few differences between FBA listings and merchant fulfilled (FBM) listings:

  • Amazon manages inventory levels for FBA listings, i.e. Brightpearl does not send inventory updates to Amazon for FBA listings
  • A separate warehouse for your FBA inventory must be set up in Brightpearl

Note: Remote Fulfillment is not supported.

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Inventory for FBA listings

Brightpearl does not send inventory updates to Amazon FBA listings because Amazon control the stock quantities on your listings for you. After all, they are holding your stock so they can see just how much stock you have left to sell.

To ensure that you’re only sending stock to Amazon FBA when it’s needed, you will need to create a separate warehouse in Brightpearl specifically for FBA. This warehouse should only be used for FBA orders and never for any other orders that you are shipping from your own warehouse.

You can set an FBA warehouse by channel as opposed to the seller account, which means you can track FBA inventory separately across different locations.

Creating a separate FBA warehouse is important as it's used to monitor how many items you currently have with Amazon. With that information, you then know when to re-stock.

Furthermore, even though Amazon holds your stock for you, the inventory is still yours and needs to be recorded for accounting purposes, so it cannot be simply removed from the system.

Buying inventory

Unless you have an agreement with your supplier, you'll be buying and receiving inventory into your own warehouse. In Brightpearl, a purchase order is required to order and receive those items into stock.

These items will then be packaged up ready to be sent to Amazon.

Please note that Amazon have specific controls that must be adhered to when sending items to their warehouses. You can find out more about the various requirements here.

Transferring inventory to Amazon FBA

In Brightpearl, the items need to be moved out of your main warehouse and into the FBA warehouse using a warehouse transfer. This step is needed so that you have an audit trail of your stock leaving your main warehouse and entering the FBA warehouse.

A warehouse transfer allows you to select each product and specify the quantity being transferred before creating a goods out note ready for printing, picking, packing and shipping. Once the goods out note is marked as shipped, the items are removed from your main warehouse, indicating that those items are no longer in your warehouse. This is important so that your on hand inventory levels are updated across your sales channels and you do not sell the items by mistake.

You should create one warehouse transfer per shipment to Amazon FBA, and not one per warehouse.

The transferred items are considered in transit and need to then be received into the FBA warehouse, once Amazon have confirmed via email that they have physically received the items.

Learn more about processing warehouse transfers here.

Listing quantity / availability

Amazon control the quantity available to buy on your FBA listings for you - this figure does not come from Brightpearl.

As Amazon hold your stock for you, they know how many physical items you have left to sell and thus can update your listings accordingly.

Processing and shipping FBA orders

If you use FBA you will still need your orders to download into Brightpearl so that you can manage inventory to ensure that you don’t oversell via your other sales channels.

You will also want your accounting to be updated and to be able to report on your sales.

When a new FBA order is received on your Seller account it will download into Brightpearl where is it automatically fulfilled to a goods out note.

These orders are assigned the sales order status chosen in the marketplace setup in Brightpearl. 

goods out note

You do not need to do anything with FBA orders to begin with. Amazon are automatically notified and will begin processing the order on Amazon Seller Central.

Once the items are shipped, you will be notified by Amazon and the Amazon order is updated to "shipped" in your seller account. Please note that this does not update the order to shipped in Brightpearl.

There is a setting that controls when to mark FBA orders as shipped in Brightpearl via Channels > Amazon > Settings. You can choose whether the orders should be automatically marked as shipped at the same time as the goods out note being created, or you can turn this off to mark the orders as shipped yourself.

amazon fba shipping

Please note that marking the order as shipped in Brightpearl does not update the order in Amazon - this is done by Amazon FBA. They handle all shipping notifications for you as part of the FBA package.

If you choose to mark the Brightpearl orders as shipped yourself, then this might be best done as an end of day process by checking the orders were confirmed shipped and then batch updating the goods out notes to shipped in Brightpearl.

If you have shipped the orders in Brightpearl and the customer subsequently cancels their order, you will need to clone the Brightpearl order to a sales credit.

Payments, fees and invoices

Payments are only taken from customers once the order is marked as shipped. Once Amazon has confirmed shipment, the customer will be charged. The funds, minus fees, are then added to your Amazon seller account.

Every 14 days Amazon releases the funds into your bank account as a lump sum and provides a report of which orders it relates to and how much was taken as fees. This payment report is used to mark all the Amazon orders as paid in Brightpearl, creating all the necessary sales receipts and accounting. The same report is used for both FBA and FBM orders placed in the period. Learn more about Amazon payments here.

FBA orders will need to be invoiced to create all the necessary sales accounting and complete the order. This should only be done once the order has been confirmed as shipped.

Using FBA for orders placed on other channels

It is possible to use FBA for orders placed on channels other than Amazon.

Learn more about multi-channel fulfillment with Amazon here.

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