hello@bmbmatrix.com

An important part of e-commerce these days is shipping and delivery services. Choosing the best method to sell on Amazon and deliver to customers is very important for sellers; because how and when to get the products purchased is effective for customer satisfaction. A well-organized and well-organized process can increase your profits. Using customer fulfillment (FBM) is beneficial for small businesses. This simple guide will explain how Fulfillment by Merchant (FBM) works. 

What is Amazon FBM? 

The short form for Merchant Fulfillment on Amazon is Amazon FBM. In this fulfillment process, sellers list their products and decide to manage their business activities. They do everything from storage and shipping to customer service. Along with the FBA system, about 43% of Amazon sellers use the FBM business model. However, 9% of Amazon sellers only use FBM. Usually, newbies use this method more than established sellers because the initial setup is easy. 

How does Amazon FBM work?

Obviously, in the Amazon FBM business model, when a product is sold on Amazon, the customer fulfills the order. 

Here are some steps to do Amazon FBM: 

 1) First, you need your business information as below to create an account in Amazon Seller Central.

2) From the information above, register with Amazon and choose one of the Amazon plans: Professional Seller or Individual. 

3) The next step will be the product list. You need to list the products you want to sell. To improve your conversion chances, you can use the right images, videos, text, etc. 

4) Now, it’s time to choose between two complete models: FBA or FBM. When going for FBM, you need to look for cost-effective and reliable shipping/delivery partners. Fees should be lower than FBA, which doesn’t affect your margin.

 5) Now it’s time to ship your products to your warehouse or distribution center. Your home is the best option as a short-term solution if you are a small business owner. Large companies may require multiple distribution centers. Depending on the number of distribution points at your disposal, the distribution of products to important points will be easy. Also, you can reduce your average shipping area and save on shipping costs. 

6) Delivery of orders received on time is another important factor. Amazon determines the estimated delivery time for customers on the checkout page, which shows the order and delivery time. It is possible to change the shipping and processing times to better meet customer expectations. You need to follow the e-commerce rules for the customer by purchasing the shipping label through Amazon or yourself. Amazon sends a return label with your background information.

When should you use Amazon FBM? 

Obviously, not all marketers can be successful using only one method for their business. So, running an Amazon business won’t be the same thing. If you are a seller who sells unique products in a short period of time, FBM is the best choice for you.

Consider that you can use both FBA and FBM, which doubles your exposure and sales opportunities, but new sellers with limited inventory often opt for the FBM business model. 

Here we outline the best conditions for FBM: 

Advantages and disadvantages of FBM 

Assuming you decide to do all the work by choosing the FBM execution method. But, it is important to know the pros and cons of using this method. 

Benefits:  

Disadvantages:  

Amazon FBM vs FBA 

Of course, comparing Fulfillment by Amazon (FBA) to Fulfillment by Merchant (FBM) is tricky. In FBA, sellers ship their products directly to Amazon’s warehouse, while FBM stores the products in the seller’s warehouse. 

Also, with FBA, picking, packing, shipping, and customer service are part of Amazon’s operations. Additionally, your customers can use Amazon Prime service for free for two days with qualifying orders. 

But, in the FBM system, apart from product listing, shipping management, customer support, and all aspects of order fulfillment are the responsibility of sellers. 

Amazon FBM fee 

Sellers face certain costs when they decide to use customer fulfillment on Amazon. Depending on their shipping/delivery options, these fees may vary from seller to seller. The commissions received by all sellers are broken down below:  

Is Amazon FBM worth it?

Increasing your profit margin is the main benefit of using FBM. When you sell large or heavy products, there is no doubt that the FBM system is the best choice. Also, when you run out of FBA products, FBM is a good backup strategy. FBM can be a profitable venture as a side business if you have access to free space.

 

How much money do Amazon FBM sellers earn? 

There is no limit to your winnings amount. It depends on many factors, especially the time and effort you put into your business. In general, FBM sellers start their business on Amazon faster than FBA sellers. About 33% of FBM sellers can earn $25,000 per month in revenue. In this article, you will find more information about Amazon FBA Business.

 Final thought 

Although Amazon FBM may seem like a difficult task, it has many advantages. The FBM system gives you better control over your business. Also, it is known as a good backup for Amazon FBA. In this article, you can read the pros and cons of Amazon FBM.

Leave a Reply

Your email address will not be published. Required fields are marked *