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Why should a seller consider Amazon FBM? For an Amazon Business, Is Amazon FBM a good choice? To choose the best fulfillment option for your Amazon online business, you need to understand it better.
Amazon is one of the world’s most complex and highly competitive online marketplaces. The brand owners must learn how to manage their fulfillment processes and compete with millions of other sellers. For sellers to fulfill their purchases, Amazon offers two options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
Today, this article will examine Amazon FBM and how it can benefit your business.
What is Amazon FBM?
Amazon FBM is also known as fulfilled by Merchant. A seller needs to list the inventory and stock details on Amazon, and when a customer orders the product, the seller will need to process the shipment and deliver the goods to the customer’s address.
Sellers fully control their products’ storage, packaging, and delivery. In this process, the seller uses his resources and doesn’t pay any fulfillment fees to Amazon. Also, the seller is responsible for managing refunds and customer service.
Pros of Amazon FBM
Little investment
You can start an Amazon FBM business without much investment. You can buy limited stock from a wholesaler and start the business by listing them on Amazon. Once you receive orders, you can ask the Amazon suppliers for more units.
Your control over everything
The FBM business is much under the control of sellers. You can make a decision anytime regarding anything. You can switch your shipping company if you have a low shipping carrier. But, in FBA, it is not possible. Amazon fulfills it for you; whatever they charge, you must pay them as FBA fees.
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Cons of Amazon FBM
Manual process
In Amazon FBM or fulfilled by merchants, sellers must take care of everything from product shipment to returns. You should have time to process orders and get them shipped on time. Also, you will need to handle the support service.
If you find no time, you must invest money in a Amazon virtual assistant or hire staff at your physical address.
Buy Box
Unlike FBA sellers, FBM sellers would not quickly get Buy Box options for their products. Amazon does not trust new FBM users or allow boy boxes on the listing. It will be visible on your listing once you start getting sales and maintain a good sales and review history.
Sometimes, Amazon provides buy boxes to a few category products priced below $20. But, all it depends on the Amazon algorithm, whom to offer Buy Box and whom not.
Physical Space or Warehouse
You will sell on Amazon and process orders. So, you must keep inventory at your address or rent a space to keep it. It will add on storage fees and maintenance costs.
How to sell on Amazon FBM (3 Easy Steps)
Create an account on Seller Central
First, you need to create an Amazon seller account to sell on Amazon. This is the first step; after this, you are all set to sell your products on Amazon.
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List product and inventory details
Once you Create an account on Seller Central After that, You need to list your product on Amazon. Make it an FBM listing. Add pictures, price, and product description. Add inventory stock, and your listing will go live in the biggest online marketplace. Once your products are listed, your customers will be able to see your products, and within some time, you’ll start receiving your orders.
Ship the orders
Once you receive the order, Amazon will share the details in the seller central dashboard. Get customer address, phone number, and order product details. All this information is required to fulfill the shipment. Print the order slip, and dispatch it to the unit box. Make a shipment request on the shipping career website. They will pick up your product and deliver it to the customer’s address.
For FBM, you need to keep in mind the following points:
- You need to ensure that the product reaches your customer’s doorstep on time.
- Make sure that your customers are satisfied with your services so that you can gain the trust of your customers.
- Your staff providing your services and your stock must be managed properly simultaneously.
- Most importantly, you need to be cost-effective. If you are paying more than you would have paid to Amazon for its services. Then Amazon FBM will not be a good idea for you.
