Amazon is a multinational technology company that has dominated the eCommerce market, growing quickly throughout the past few years thanks to its ability to quickly fulfill direct-to-consumer orders for a variety of items.
With a rise in the popularity of frozen foods, brands with a frozen food product have started offering their products on Amazon as alternative to or in addition to selling on an ecommerce website. If you are wondering how you can ship frozen food on Amazon, there are a few key points that you should keep in mind.
FBA vs FBM
Most consumer-packaged goods or shelf stable food and drink items are eligible to ship via FBA or Fulfilled by Amazon. In this case, you ship your items to Amazon and Amazon picks, packs and ships directly to your customer.
The advantages of FBA are many, such as the PRIME badge whereby Prime members get free shipping, and you get significantly reduced shipping costs. Additionally, Amazon takes responsibility for timely delivery and handles the customer service should an issue with the order arise.
FBM or Fulfilled by Merchant, is exactly that. Since Amazon does not currently have any cold storage facilities or frozen logistics capabilities, you would be responsible for shipping directly to your customer, taking full responsibility that the items arrive on time and in the same condition as when they were sent out.
You would also be responsible for adding the tracking information into the Amazon system as well as handling the customer service in the event of an issue. That being said, the FBM option should not be a deterrent to launching your frozen or refrigerated food product on Amazon and here’s one of the biggest reasons why.
One of the greatest advantages of selling on Amazon is not just the millions of loyal consumers who use it daily, but the high trust factor and consistent buying experience shoppers have when using the platform as well.
This leads to significantly higher conversions rates versus selling from an ecommerce site such as Shopify. It is not uncommon to see conversion rates of 20% on Amazon where 1% may be the norm on a good ecommerce site. A more complete strategy would be to sell on Amazon and your own website so the platforms can work together synergistically.
Once you’re up and running on Amazon, you can easily start generating sales with Sponsored Ads and once your product gets established, you can start ranking organically within Amazon as well. It is not uncommon to see 50% of sales come organically and 50% from paid Amazon ads.
Interestingly, the more sales you get, the higher you could rank as Amazon takes sales and reviews into consideration as part of its ranking algorithm. Overall, it is a much quicker and easier process to start generating sales and reviews right out of the gate compared to an ecommerce website. So what steps are needed to start fulfilling your own orders?
Partnering with a 3PL or Third-Party Logistics Provider
Unless you plan on fulfilling orders yourself, finding and partnering with a reliable and cost effective frozen food 3PL is a critical first step. That being said, in today’s post-pandemic environment, the demand for 3PL services exceeds available supply.
As a result, for those seeking to develop a direct to consumer frozen foods ecommerce business, the process of attracting a 3PL has become considerably more difficult.
Rely on the Trained Professionals from Gray Growth Logistics
For more than 30 years, Gray Growth Logistics has been a leader in direct-to-consumer marketing and business model development. We specialize in frozen and refrigerated shipping programs for brands with a frozen food product.
Our turnkey ecommerce frozen logistics solution will provide you with the peace of mind that you deserve as our professionals will take care of all your frozen food shipping needs from start to finish.
This includes helping you find the right 3PL for your exact needs, contract negotiations to ensure you get the best possible rate, shipment and sales forecasting, marketing support, branding and package guidance and much more.
Furthermore, we will take the time to understand your business, customizing our services to meet your requirements. With an unparalleled level of experience in the industry, we work hard to ensure your brand has the highest probability for success.
To learn more about how the team from Gray Growth Logistics can help you develop a direct-to-consumer frozen food program which includes Amazon, contact us today at (888) 988-8762 or email us directly at email@example.com.