Comparing Amazon FBM versus FBA fulfillment

If you want to start an e-commerce business on the Amazon platform, there are two primary fulfillment options available. These are FBM, or Fulfilled by Merchant, and FBA, or Fulfilled by Amazon. Each of these options has its own advantages and disadvantages, but for many retailers, the FBM option along with an expert fulfillment service is the best option. The differences between these procedures are explained below:

The Fulfilled-by-Amazon (FBA) Process

When you choose FBA, it means you sell the product and Amazon delivers it to customers. They send the products in large quantities to various fulfillment centers across the country. Amazon employees pick, pack, and ship the products on your behalf as soon as orders are received. Many retailers choose FBA because it saves time and they no longer have to worry about procuring their own storage space, hiring their own employees and negotiating their own shipping rates with the various local carriers.

Although FBA is popular, there are a few aspects you should consider before choosing one of the options.

First, you should check if there is a cheaper option. Amazon doesn't offer this service for free, so you'll have to pay for it. The tariffs are also misleading. For the execution of orders, either the dimensional weight or the actual weight is calculated, whichever is higher. As your business grows, that can be a very large amount. Once you've joined FBA, it can also be difficult to switch to FBM.

The fulfilled-by-merchant (FBM) process

If you choose FBM, this means that you only sell and ship the products via Amazon as a sales platform. This can benefit numerous retailers in many ways. In fact, for most sellers, the benefits of FBM far outweigh the potential benefits of FBA.

With FBM, you get:

• More control over orders: Regardless of whether you pack and ship the orders yourself or hire an external fulfillment company, you have much more control over how your orders are packaged and shipped.
• Lower costs (in many cases): Because of the way Amazon charges by weight, you can probably save money on large, heavy items with relatively low profit margins if you ship it yourself or hire a fulfillment company other than Amazon.
• Seller-processed Prime: You don't have to choose to let Amazon fulfill orders to offer Prime shipping to buyers. If you have a Professional Selling account, you can use Prime in the same way you use FBA sellers.
• Better discounts: If you choose another company, you can usually set your shipping and delivery costs much lower than Amazon would charge them.
• Better packaging customization: If you want your packaging to show your brand logo and/or colors, it's almost impossible with FBA. That's why most traders choose FBM (or switch to FBM).

In most cases, small companies that choose FBM have fewer problems, generate more revenue, and have more time for the more important areas of their business.

Learning more about the various fulfillment options and the services you can receive along with order management and fulfillment is critical to making the right choice for you.

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