Ecommerce Ecommerce Logistics & Fulfillment

Question 1

What does 'fulfillment by Amazon' (FBA) mean for a third-party seller?

Accepted Answer

Amazon stores, picks, packs, and ships the seller's products and handles customer service

Answer

The seller ships orders directly to Amazon customers without Amazon's involvement

Answer

Amazon buys the seller's inventory wholesale

Answer

Amazon provides the seller a free warehouse subscription

Question 2

What is dropshipping and what is its main operational advantage for new ecommerce merchants?

Accepted Answer

Selling products you don't physically stock — the supplier ships directly to the customer — eliminating upfront inventory costs

Answer

Offering free same-day delivery by partnering with local couriers

Answer

Using a 3PL to manage returns from customers

Answer

Pre-ordering large inventory quantities at a discount

Question 3

What is a third-party logistics provider (3PL)?

Accepted Answer

An outsourced company that handles warehousing, order fulfillment, and sometimes returns on behalf of an ecommerce brand

Answer

A shipping carrier like UPS or FedEx that delivers directly to consumers

Answer

A software platform that connects multiple shipping carriers via a single API

Answer

A manufacturer that also delivers finished goods to the brand's warehouse

Question 4

What is 'last-mile delivery' in ecommerce logistics?

Accepted Answer

The final step of the delivery process from a local distribution hub to the customer's door

Answer

The shipping route between the manufacturer and the brand's warehouse

Answer

The handoff between a 3PL and the shipping carrier

Answer

Returning a package from the customer back to the warehouse

Question 5

Which shipping strategy offers free shipping to all customers above a certain cart value?

Accepted Answer

Free shipping threshold

Answer

Flat-rate shipping

Answer

Real-time carrier rate

Answer

Subscription-based shipping

Question 6

What does SKU stand for and how is it used in ecommerce inventory management?

Accepted Answer

Stock Keeping Unit — a unique identifier assigned to each distinct product variant for inventory tracking

Answer

Sales Key Upgrade — a pricing modifier applied to premium products

Answer

Shipping Key Unit — a barcode used only by the carrier

Answer

Store Knowledge Update — a changelog entry for product edits