For those selling products online, the choice between selling on Amazon FBM (Fulfilled by Merchant) and Amazon FBA (Fulfilled by Amazon) can be an important one. Both options offer unique advantages that can help increase profits for sellers and provide great value to customers. Let’s look at the benefits of each option.
Amazon FBM
The biggest benefit of using FBM is that it allows merchants to maintain full control over shipping and fulfillment, which can save time and money in logistics. Since sellers are responsible for the entire process, they can ship orders when they believe they will be delivered most effectively while still providing excellent customer service.
Additionally, seller's have the ability to create custom packaging solutions with unique branding opportunities which customers may find more attractive. On top of this, there are often fewer competition restrictions in terms of pricing compared to FBA—which means merchants could potentially charge lower prices than their competitors who use FBA services.
We've also learned that selling on FBM puts a lot more profit back in our own pockets, allowing us to grow our business in other areas where we normally wouldn't be able to. Though you have to do the work yourself, you can be reassured that your products are going out at the right time, the correct product is going out, and this helps you understand every aspect of your shipping operations.
When you show Amazon for along enough time that you can ship your customers their products quick enough, you will get access to what's called "Seller Fulfilled Prime". By displaying the Prime badge, you are committing to fulfill orders with Two-Day Delivery at no additional charge for Prime customers.
This says your service is as good as the FBA service.
Selling FBM also allows you to do Multi-Channel Fulfillment using softwares like Channel Advisor much easier.
By selling FBM on Amazon and utilizing Channel Advisor, we can now list on eBay, Poshmark, Mercari, and WalMart at the same time with no extra work. When an item sells on one platform, it delists the product from every platform.
This is by far the biggest perk we see to doing FBM with Amazon!
Amazon FBA
One of the major benefits offered by Amazon through its FBA program is convenience for both sellers and buyers alike: Sellers no longer need to worry about managing inventory or making sure that orders are shipped on time; instead all this is taken care of by Amazon's logistics network.
This can also help attract new customers due to the fact that buyers know their order will be delivered quickly and reliably via Prime shipping services.
Additionally, since all orders are fulfilled directly from warehouses owned and operated by Amazon, there is less risk involved with lost or damaged goods compared to those shipped out through an independent merchant’s own warehousing system.
Amazon FBA also offers sellers access to a range of other services, such as marketing and analytics, that can help them reach more customers and optimize their sales.
Finally, it provides the added benefit of giving sellers access to Amazon’s huge customer base and allows them to take advantage of its extensive search engine optimization capabilities. This is especially useful for small businesses looking to grow their presence online. All of these factors make Amazon FBA an attractive option for buyers and sellers alike. With the right strategy, it can be a great way to maximize profits while minimizing risk.
Regardless of whether they’re experienced ecommerce professionals or newcomers to the industry, Amazon FBA is an excellent way to start selling online. So whether you’re looking to get started or expand your existing business, it’s worth considering Amazon FBA as one of your options.
With the right guidance and support, Amazon FBA can be a great way for any seller to build their brand and increase their profits.
If you need help selling on Amazon, whether FBA or FBM, we want to help you.
The products we offer at Wholesale Universe are have been proven to sell everyday for high profit margins!
If you have questions, reach out to us so we can help!
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