Fulfillment By Merchant (FBM)
FBM allows merchants to be in control of their inventory storage, packaging, and shipping. Merchants can expect fewer fees paid to Amazon and higher margins as well as the elimination of delayed payments, fees to Amazon for handling your assortment or shipment costs to get products to fulfillment centers. With FBM you are in control of the selling process which allows you to establish your brand from the ground up.
Shipping via FBM allows you to ensure the quality of each item at the time it is shipped to customers resulting in less negative feedback. You can also provide personalized packaging for your customers compared to regular Amazon packaging. When selling through FBM, your inventory does not need to be paid for all at once and shipped to Amazon warehouses, so it is easier to get started selling faster. Amazon has strict requirements for accepting products into their warehouses and it can take time to ship your entire assortment to them.
Using FBM You will have to battle for the Buy Box. Sellers that control the Buy Box will have their product added to the customer’s cart and get the sale. Without control of the Buy Box customers will have to scroll down the page to find the small section and link under “Other Sellers on Amazon”. Not having the Buy Box can make it difficult to gain sales. If you are certain that there are no other sellers for your product, and you can win the Buy Box then FBM is a good option to sell through.
Advantages of FBM
Control over Business
No Unexpected Costs (No storage or fulfillment costs)
Opportunity to build an independent brand
Seller Fulfilled Prime
There are more Amazon Prime customers then non-prime customers. Most of the consumers on Amazon searching for products get the benefits of fast free shipping of any eligible Prime product in less than 2 days. Ordinarily, these consumers only buy from sellers that offer Amazon Prime. Customers that buy from non-prime FBM sellers will have to pay additional shipping charges and will receive slower shipping which can result in your product getting overlooked. If you are an FBM seller it is possible to be accepted by Amazon into the Seller Fulfilled Prime Program which allows you to deliver to domestic Prime customers from your own warehouse. This badge is typically reserved for established businesses on Amazon with a track record of fast shipping and positive customer reviews. Once accepted into the program and your trial is complete you are able to store inventory in your own warehouse, process orders and buy shipping labels from approved carriers, pick, pack and ship your orders the same day and Seller Fulfilled Prime carriers collect and deliver orders in two days to customers.
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