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

With FBA, sellers send inventory to Amazon's fulfillment centers and Amazon handles all warehousing, picking, packing, shipping, and returns.

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

Dropshipping removes the need to hold inventory, so merchants can launch with low upfront capital while offering a wide product catalog.

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

3PLs like ShipBob or Whiplash receive a brand's inventory, store it, pick and pack orders, and hand them off to carriers for last-mile delivery.

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

Last-mile delivery is typically the most expensive and time-consuming part of the shipping process because it involves delivering to many individual addresses.

Question 5

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

Accepted Answer

Free shipping threshold

Answer

A free shipping threshold (e.g., 'Free shipping on orders over $50') incentivizes customers to increase their order size, boosting AOV while partially offsetting shipping costs.

Ecommerce Practice Test

Ecommerce Practice Test

Ecommerce Ecommerce Logistics & Fulfillment