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Understanding Amazon FBM - Fulfilled by Merchant

Why should a seller consider FBM? Is Amazon FBM a viable option for your Amazon business? Understand FBM better to choose the best fulfillment option for Amazon.

Amazon FBM
  • Amazon has proven to be one of the most complex and competitive marketplaces in the world. Sellers navigating the marketplace have to find ways to not only compete against millions of other retailers, but also to find ways to manage their fulfillment processes. Amazon offers two different vessels for this: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

  • What is FBM?

    Fulfilled By Merchant is when you list a product on Amazon and elect to ship products to each buyer by yourself.

  • When to choose FBM

    FBM is better for exclusive products, small volume products or products with lower profit margins.

Advantages of FBM

  • Seller maintains a sense of control over the business

    Freedom to run the business exactly as seller chooses. And more control over your inventory. You can expand your Amazon business without worrying about increase in the fulfillment fees. Since you fulfill products by yourself you’ll also have a better knowledge of the current status of your inventory stocks.

  • Can maintain an online as well as an offline retail selling activity with a single inventory

    Since you store your inventory in the warehouses chosen by you, you have a complete control on the inventory and can use the same inventory stocks to run an offline retail store too.

  • Greater Margins

    No unexpected costs. You get a better cut from the profit margins. You can save on fulfillment fees, find the best and a cheaper choice for your warehouse, reduce on the shipment charges. Especially when it comes to products large dimensional products with lesser profit margins.

  • Opportunity to build an independent brand is more feasible

    An FBM seller has to interact with his customers directly. You get a better understanding of your customer’s requirements and complaints since you are directly involved with them. Sometimes you even get valuable ideas and insights from interaction with them.

  • Less unavoidable losses due to changes in Amazon policies

    Amazon changes its fulfillment pricings and policies often. It also imposes a Long Term storage fees for products that are in the Amazon repository for a long time. An FBM seller does not these worries.

  • Less paperwork, particularly when dealing with non-sales-tax states

    An Amazon FBA seller has two unavoidable headaches. One is the Amazon’s taxations for fulfillment and the other is loads of paperwork. An FBM seller, is free from both these issues

Use the Amazon FBA Calculator to check compare between FBA or FBM. Understand the FBA costs for your Amazon product with the Amazon FBA Calculator. The article How to find the best selling Amazon products gives a good insight to the usage of FBM calculator. Increase your Amazon profits with more useful and interesting SellerApp products.

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