Turbo-Charge Your Revenue!
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now
Have you ever wondered how products get to your doorstep so quickly when you shop on Amazon? The answer lies in how those products are fulfilled. Amazon offers two main ways to sell: FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant). In this guide, we'll look at what Amazon FBM is, its pros and cons, how to sell using FBM, and when FBM is better than FBA.
Amazon FBM stands for Fulfillment by Merchant. It means that the seller is responsible for storing, packing, and shipping orders directly to customers, without using Amazon's fulfillment centers. Essentially, you're taking the role that Amazon's FBA service would otherwise play.
While FBM requires more hands-on work, it offers more control over your business, especially for products that have specific storage or shipping requirements.
Choosing Amazon FBM over FBA comes with several potential benefits.
With FBM, you avoid the additional FBA fees. This includes the fulfillment fees that FBA charges per unit, and the monthly storage fees for storing your products at Amazon's fulfillment centers.
With FBM, you have full control over your inventory and fulfillment process. You can choose where to store your inventory, how to pack and ship your products, and how to handle returns.
While Amazon's Buyer-Seller Messaging is limited, FBM sellers have more opportunities for direct communication with customers, which can help build relationships and improve customer service.
For products that require special handling or custom packaging, FBM might be a better option since you can control the packing process.
FBM requires a lot more work on your part, as you're responsible for storing, packing, and shipping all orders. This can be a significant time and resource commitment.
Unlike FBA where Amazon handles customer service and returns, with FBM you are responsible for all aspects of customer service, including handling returns. This can be a significant commitment and can impact your Seller Feedback score if not handled well.
Unless you're part of the Seller-Fulfilled Prime program, your products won't be eligible for Prime. This can be a significant disadvantage as many Amazon customers prefer to buy Prime products for the fast, free shipping.
The main differences between Amazon FBM and FBA lie in who is responsible for what.
With FBA, Amazon stores your products in their fulfillment centers, picks and packs orders, ships them to customers, and handles customer service and returns. In exchange, Amazon charges fees for their services.
With FBM, you handle all of the above. You store your products, pick and pack orders, ship to customers, and handle customer service and returns. In exchange, you don't pay Amazon's FBA fees.
Learn about Amazon FBA vs FBM to help you decide which option is best for your business.
While FBA is often the more popular choice, there are certain situations where FBM could be a better option.
For large, heavy items, the FBA fulfillment fees can be significant. If you can manage the fulfillment process in-house more cheaply, FBM might be a better choice.
If you're selling low volumes of products, the FBA fees might not be worth it. In this case, FBM could be a more cost-effective choice.
If you already have a fulfillment operation in place (such as your own warehouse), it might be more efficient and cost-effective to use FBM and utilize your existing infrastructure.
For products that require special handling or custom packaging, FBM gives you full control over the packaging and shipping process.
If you decide that FBM is the right choice for your business, here are the steps to get started:
In conclusion, while Amazon FBM involves more work, it also gives you more control over your fulfillment process and can be more cost-effective in certain situations. It's important to carefully consider your options and decide which method is best for your business.
If you need expert guidance, the team at ePlaybooks is here to help.
Fulfilled by Merchant (FBM) on Amazon means that you, the seller, are responsible for storing, packing, and shipping the products directly to customers. So, you keep inventory in your own warehouse, or with a third-party logistics provider.
The key difference between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) is in who handles the storage, shipping, and customer service.
With FBA, Amazon stores your products, picks, packs, ships them to customers, and handles returns and customer service while you pay Amazon fees for these services. On the other hand, with FBM, you store your inventory and handle all aspects of order fulfillment and customer service.
Shipped with Amazon merchants means the order is fulfilled directly by the seller/merchant, not Amazon. In other words, the product is part of the Fulfilled by Merchant (FBM) program. With FBM, the seller stores the inventory and handles the packaging and shipping to the customer.
In Amazon FBM (Fulfilled by Merchant), the seller is responsible for paying the shipping costs to deliver the product to the customer.
However, who ultimately bears the cost depends on how the seller sets up their listing:
Sellers can pay carriers (like DHL, UPS, and FedEx) directly to deliver orders to customers.
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now