As e-commerce continues to evolve, first-party (1P) vendors are constantly seeking innovative ways to streamline their operations and meet the ever-growing expectations of customers. One such solution offered by Amazon is Amazon Direct Fulfillment.

This program is a strategic option for vendors who want to take advantage of Amazon’s platform while maintaining control over their inventory and shipping process. 

What is Amazon Direct Fulfillment?

Amazon DF is a drop shipping program specifically designed for first-party vendors using Amazon Vendor Central. 

Unlike traditional fulfillment options like Amazon FBA (Fulfillment by Amazon), where you send inventory to Amazon’s warehouses, Amazon Direct Fulfillment enables vendors to ship products directly to customers once an order is placed on Amazon. 

In this arrangement, the vendor acts as the supplier, and Amazon acts as the intermediary, facilitating the sales process. The vendor uses their inventory to fulfill orders on Amazon’s behalf, ensuring timely delivery without the need for storage in Amazon’s fulfillment centers. 

How Does Amazon Direct Fulfillment Work

The workflow for Amazon Direct Fulfillment can be broken into several steps: 

1. Order Placement: When a customer places an order for an Amazon 1P vendor’s product on Amazon, the system notifies the vendor of the purchase. 
2. Order Acknowledgement: The vendor needs to acknowledge the order within the set time frame, usually within 24 hours. 
3. Shipping Label Creation: Amazon provides a prepaid shipping label, including all necessary details. 
4. Packing and Shipping: The vendor is responsible for packing the order and attaching the Amazon-provided shipping label. Once shipped, the vendor updates the order status on Amazon Vendor Central. 
5. Customer Delivery: The package is delivered directly to the customer, fulfilling the order as though it came directly from Amazon.

Amazon Direct Fulfillment Pros and Cons

Pros of Amazon Direct Fulfillment 

Vendors are able to retain control over their inventory without the need to commit stock to Amazon warehouses. 

By avoiding FBA storage fees and shipment costs, sellers are able to make the process more cost-effective. 

Vendors can also be open to scaling their operations quickly to meet customer demand. Products sold on Amazon DF maintain the same customer trust as those sold through FBA. 

Cons of ADF

The cons for using Amazon direct fulfillment are that the vendors must meet Amazon’s packaging, shipping, and delivery standards to best avoid penalties. 

There is also an increased sense of responsibility since the vendor is responsible for order fulfillment, packaging, and logistics, which requires additional resources.

Another con is that not all products or vendors qualify for Amazon DF, which can limit participation. 

How Can You Get Started with Direct Fulfillment?

To get started with Direct Fulfillment, ensure you have an active Amazon Vendor Central account, as DF Amazon is exclusively available for 1P Amazon vendors. 

Be sure to meet compliance standards, where you familiarize yourself with Amazon’s packaging and shipping requirements to avoid issues during order processing. 

Use tools that integrate with your Amazon inventory system for real time updates. 

Submit an application via Vendor Central to enable Amazon DF and once approved, configure your account to start fulfilling orders directly. 

Be sure to train your team, monitor system performance, and build strong relationships with your logistics partners to streamline the process.