Testimonial from International FBA Merchant Babys-und-Kids - "Based on our experience to date, FBA is synonymous with lower costs, higher sales, and a greatly reduced workload"
There is at least one thing Babys-Und-Kids has in common with the large community of children at whom its products are targeted: both are growing fast. As far as Babys-Und-Kids is concerned, this growth—and its international expansion—is a direct result of using Fulfilment by Amazon (FBA).
The main focus is on baby equipment and cot accessories—many of them designed and manufactured on the premises—as well as carriers, toys, and clothing. Environmental friendliness and sustainability are an important priority at Babys -Und-Kids. The head office is located in Herrenberg, South-West Germany. The company has operated its own web store ever since its establishment in 2005. 2009 proved to be a year of fundamental decisions that will shape Babys-Und-Kids' future—with the extension of online sales to Amazon.de in January only the beginning. The Amazon involvement and the launch last May of a limited liability UK branch in Halesowen, not far from Birmingham, were key factors in the firm's expansion and globalisation strategy, of which participation in the FBA programme is just one element.
All Amazon sales are processed through the British company, with Babys-Und-Kids products marketed via the Amazon platforms in the UK, Germany, and France. Approximately 500 different items are listed on Amazon.de with around 100 each on Amazon.co.uk and Amazon.fr.
How does Fulfilment by Amazon (FBA) fit into this picture? Extremely well, as Reinhilde Joachim explains: "We opted for FBA because Amazon's testimonials confirmed that by participating in the FBA programme, a lot of merchants have succeeded in significantly increasing their sales. Of course, in addition to the growth opportunities, we were also attracted by the flexibility FBA offers in terms of warehouse and shipping capacity. As a relatively small company with limited space and personnel, this versatility is an enormous advantage for us. There are certain product groups where the benefits of FBA are quite simply unbeatable," she asserts. "We started off with baby carriers then gradually added more and more items to our FBA portfolio while keeping a close watch on the sales curve." The sales leapt by an average of 30 percent for the products in question.
"Of course, aspects like customer service and handling of returned parcels, which are taken care of by Amazon under the FBA agreement, also help reduce our workload," Joachim adds. "If a buyer wishes to return an item, he either gets in touch with Amazon's customer service or contacts the online Returns Centre. Returns are processed as soon as they arrive at the Amazon Fulfilment Centre. The great thing for us is that we are shielded from all of this and free to concentrate on our day-to-day work.”
The Multi-Channel Fulfilment option also offered by FBA has already been approved by the Babys-Und-Kids manager as compatible with her business model. "We intend to open a new web store of our own a few months from now that will provide a platform for our complete product range," Joachim continues. "The idea is to have not only FBA products but also any other items sold via the web store shipped by Amazon. This is precisely what Amazon's Multi-Channel Fulfilment is all about. In fact, we are only just embarking on this exciting journey. At present, no more than about 10 percent of our store portfolio is listed with Amazon. We need to take it step by step owing to our company structure. However, we are also considering extending our range to include so called baby hardware, such as technical equipment, bottle warmers, etc. This kind of product is just made for FBA."
Reinhilde Joachim – Owner and MD Babys-und-Kids
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For more information about how you might set up an account and sell on another Amazon Europe platform please get in touch with us at:
Germany - fba-de-sales-inquiries@amazon.com
France - amazon-fba@amazon.fr
