Amazon is the largest e-commerce platform globally, providing sellers with an extensive audience. Sellers can choose between Amazon FBM vs. FBA for order fulfillment. Understanding the differences between these methods is essential for optimizing your fulfillment strategy.

 

1. Fulfillment Methods on Amazon

Amazon offers several fulfillment options:

Each method enables sellers to deliver orders to customers, but the right choice depends on your business needs and goals.

 

2. Fulfillment by Merchant vs. Fulfillment by Amazon

Market conditions and individual circumstances in e-commerce are constantly changing. Whether you’re new to selling on Amazon or have been on the platform for years, it can be challenging to determine whether FBA or FBM is better for your brand.

 

a) When to Consider Amazon FBA

Amazon FBA might be suitable if you:

  • Need warehousing for inventory storage and order fulfillment
  • Want to outsource fulfillment and save time
  • Lack customer service or returns management capabilities in-house
  • Desire the Prime badge for increased visibility and trust

 

b) When to Consider Amazon FBM

Amazon FBM could be better if you:

  • Have your own warehouse
  • Are shipping large, heavy, or temperature-sensitive items
  • Want a responsive and dedicated fulfillment partner
  • Prefer using your branded packaging and curating the unboxing experience
  • Avoid complex pricing structures and additional fees

 

3. Amazon FBM Drawbacks

Using Amazon FBM can have downsides, especially if you don’t partner with an experienced fulfillment provider. Some challenges include:

 

a) Learning Curve

Adapting from Amazon’s perfected FBA process to FBM can be challenging. FBA sales do not always translate directly to FBM sales.

 

b) No Prime Badge

FBM sellers must drive organic traffic without the Prime designation.

 

c) Time-Consuming Fulfillment

Managing FBM orders can be time-intensive, with hidden fees and opportunity costs from handling logistics yourself.

 

d) Warehousing Costs

Outsourcing fulfillment can be costly, especially with high inventory levels.

 

4. Benefits of Amazon Fulfilled by Merchant

Despite the challenges, Amazon FBM offers several benefits:

 

a) Lower Fees

FBM charges a monthly subscription fee, a small per-order fee, and a referral fee, making it more cost-effective than FBA.

 

b) Fewer Requirements

FBM has fewer rules and penalties, unlike FBA’s stringent requirements.

 

c) Control Over Branding

FBM allows for custom packaging and better control over customer interactions and branding.

 

d) Better Support

Partnering with a professional fulfillment company can provide quicker, more thorough support.

 

5. Save Time and Costs with ShipSage

Amazon FBM can be a great option, especially with the right partner like ShipSage. ShipSage can manage your FBM orders, providing a Prime-like experience without the hassle of self-fulfillment:

 

a) Multiple Fulfillment Centers

ShipSage’s numerous U.S. centers reduce shipping costs and delivery times by fulfilling orders from the nearest location.

 

b) Exceptional Support

ShipSage offers personalized support, unlike Amazon, ensuring you always speak to knowledgeable representatives.

 

c) Advanced Technology

ShipSage integrates seamlessly with Amazon FBM, providing a dashboard for inventory management and analytics.

 

d) Grow Sales Channels

ShipSage helps you scale across multiple platforms, not just Amazon, ensuring you can build and remarket to your customer base.

 

6. Conclusion

Amazon FBM offers greater control and cost savings compared to FBA, making it a strategic choice for many sellers. Partnering with a 3PL like ShipSage can optimize your fulfillment process, providing a Prime-like experience without the high costs of FBA.

Book a free consultation call with ShipSage to learn how we can support your Amazon FBM fulfillment and help your business thrive.

 

7. Amazon FBM FAQs

 

a) How much does Amazon FBM cost?

Amazon FBM costs vary but generally include:

  • Monthly subscription fee ($0.99 per item sold for the Individual plan or $39.99/month for the Professional plan)
  • Per-order fee
  • Referral fee
  • Fulfillment costs (labor, warehousing, packing materials)

 

b) Should I choose FBM or FBA?

Choose the strategy that meets your needs, saves time, and boosts profit margins. FBA is ideal for those needing warehousing and wanting the Prime badge. FBM suits those with their own warehouse, shipping large items, or desiring more control over branding.

 

c) Do Amazon FBM sellers need to package their products?

Yes, FBM sellers must pack items in their shipment packaging. This allows for branded packaging and a curated unboxing experience.

 

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