Thus far, there are nearly 3 million active sellers who successfully run their business on Amazon. And each of these 3 million sellers has their own, unique secret of success on Amazon.
It does not matter what you sell on Amazon or under which business model you run your business, since the most decisive factor is the fulfilment method that you choose. That’s because the entire way of your business on Amazon depends on a carefully chosen fulfillment method.
Today, we are going to bring to your attention the main differences between two Amazon fulfilment methods: Fulfilment by Amazon (FBA) and Fulfilment by Merchant FBM.
After reading this blog, you will be informed about both fulfilment methods; so, you can choose the best one that suits you more.
Let’s start our blog with several interesting facts; thus nearly 57% of sellers use Amazon FBA, 9% give their preferences to Amazon FBM, and 34% of Amazon sellers prefer to combine both fulfilment methods in their operation on Amazon.
Fulfilment by Amazon (FBA) is a method which provides sellers with lots of benefits. This process is quite simple: you send your inventory to Amazon’s warehouse, and Amazon takes care of the rest. If you choose Amazon (FBA) as your main fulfilment method, Amazon takes responsibility for storing your inventory and shipping orders directly to your customers. There is also an additional bonus for Amazon Prime members, since they are provided with a unique chance to get their orders within two days.
Fulfilment by Merchant (FBM) is the second fulfillment method for Amazon sellers. If you decide to choose this method, you should be ready that you will be responsible for the main operations within your business such as managing storage, shipping, and customer service. But, if you not pay due attention to your duties, you will be always at risk of getting suspended by Amazon for several reasons.
Which One Should You Choose?
In order to choose the right fulfilment method for your Amazon business, you have to figure out which method is right for your business. First of all, you should consider your sales strategy which is based on the business model under which you operate on Amazon.
Your next step should be considering several factors such as:
- Size and weight of your products
- Control of customer experience
- Seller feedback
- Expenses and fees
Based on these factors, you can figure out which fulfilment method you should use for your online business.
Why You Should Use FBM
If you want to control your business from scratch, and take responsibility over your customer service, then you can choose FBM fulfilment method. Or, if you sell oversized and heavy products, then this method is more optimal for you, since you should not pay much fees for sorting your products.
Why You Should Use FBA
If you specialize in selling small and light products, or you do not have enough time to provide your buyers with excellent customer service, and have no logistics in place, then Fulfilment by Amazon (FBA) is what you really need. That’s because in this case, you can be sure that Amazon takes care of lots of important aspects in your business. Additionally, you do not have to deal with such nerve-wracking processes like returns and refunds.
But, what if you sell both small and oversized products? In this case, you are provided with an opportunity to take the advantages of both fulfilment methods. However, you should be ready that you have to be extra careful, since once you stumble, Amazon starts taking actions against you.
There are lots of people who intend to start their business on Amazon and do not know whether their investment is going to fly or not. Jerome Basilio’s team exists precisely for such kind of situations. Give us a call, or message us, and we will help you invest your money in the right direction and become the owner of a profitable e-commerce business. Just go through our website and you will ensure that people who work with our team have tremendous success in their business.