What’s new in Sellerwix? Find out about the latest Sellerwix updates. Enjoy our new feature launched on August 2, 2023!
Selling products on Amazon can be a highly profitable and flexible way to earn income, as evidenced by the 6 million sellers currently using the platform. With the right resources and time, anyone can become an Amazon seller.
While the majority of Amazon sellers use the Fulfillment by Amazon (FBA) method to store and ship products from Amazon’s warehouses, some have turned to Fulfillment by Merchant (FBM) due to inventory restock limits affecting FBA.
In this article, we will provide you with the necessary information to begin selling on Amazon and fulfilling products through FBM.
Obviously, not all of these will apply to every seller using FBM. For example, many large-scale Amazon sellers opt for FBM because they sell through multiple channels and already have smooth-running logistics systems.
Amazon clearly wants to sell FBA services, however. For example, Amazon’s help files on FBM highlight that “Sellers who adopted FBA last year saw 20-25% higher sales.” Nonetheless, for many businesses, FBM will be the most suitable option.
The main benefit of using FBM is that it ensures you control your inventory. However, assuming you can store and ship your merchandise and take on responsibility for customer support inquiries, returns, or complaints, you may be able to price your goods more competitively than with FBA, as you don’t have to pay Amazon’s fulfillment fees.
Another benefit of using Amazon’s MFN is that you can combine all your online sales channels with Amazon’s fulfillment network and provide fast delivery. You can operate your business using a single inventory source with full shipment tracking across all your sales channels.
Most Amazon sellers can select FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant). However, there are some cases where you have no option. For example, if your business model is based on dropshipping, you must opt for FBM, as the model relies on a third party to fulfill orders.
Another obvious use case for FBM is with Amazon Handmade, Amazon’s artisan-only community of sellers. In this case, artisans create unique goods they sell in the marketplace. As these are custom, you can’t sell them using FBA.
FBM is also better if you sell heavy, bulky goods, as Amazon FBA charges extra fees for handling oversized goods.
In other situations, however, both fulfillment models have pros and cons. Therefore, you might consider experimenting with FBA and FBM to see which works best for you.
What’s new in Sellerwix? Find out about the latest Sellerwix updates. Enjoy our new feature launched on August 2, 2023!
Bid farewell to missed updates and delayed shipments with Sellerwix's latest feature! Our brand-new notification system sends out Email and/or Telegram alerts for orders with late shipments, enabling you to stay informed and on top of your business while keeping your customers in the loop.
Over the last several years, Amazon has invested over $30 billion in the fulfillment network and technology. And as the data shows, sellers who add FBM into their repertoire find more success in the long run! Get started with Amazon FBM now with Sellerwix!
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