One of the best passive income strategies is to sell products on Amazon. Over two million vendors presently rely on the marketplace for a consistent source of income, and 2,975 new users signed up per day in 2021. It is clear that Amazon has fierce competition. However, the platform has continued to be a preferred pick for ambitious business owners. This might be due to the giant’s enormous client base, but one of the main factors in why most sellers decide to use the platform is its extensive fulfillment options.
Amazon provides two fulfillment options: Fulfillment by Merchant and Fulfillment by Amazon. Amazon oversees intricate business operations including warehousing, customer support, and order fulfillment on behalf of merchants through FBA. Sellers who choose Amazon FBM, on the other hand, will be responsible for managing these procedures. As a result, Amazon offers its merchants the choice of total control through amazon fulfilled by merchant or outsourcing through FBA.
Because of its Prime badge, simple shipping, and other benefits, the Fulfillment by Amazon option used to be the preferred choice for the majority of vendors. Some merchants, however, have lost faith in the system due to the company’s method of order fulfillment during the pandemic. Consequently, there is now more interest in the Fulfilled by Merchant option. Nevertheless, some sellers prefer to employ the FBA option because it enables them to delegate the majority of their business operations to Amazon. However, if you’re reading this, you’re likely thinking about converting from Amazon FBA to Amazon FBM.
What is Amazon FBM (Fulfillment by Merchant)?
For third-party merchants who prefer to handle their own fulfillment procedures, Amazon offers Fulfillment by Merchant, or Amazon FBM. Amazon stores, packs, and ships orders for sellers using FBA. They even manage refunds and offer round-the-clock customer assistance, giving FBA sellers more time to complete other responsibilities.
FBM vendors, on the other hand, will be required to pack, store, and send orders by themselves. They will also be responsible for managing returns and refunds and providing customer care. Because managing these processes can be difficult and time-consuming, most sellers frequently ignore the Fulfillment by Merchant service. But that does not mean it is a terrible idea to use FBM. Therefore, it is crucial for you to comprehend how the service functions if you’re thinking about converting from Amazon FBA to Amazon FBM. Along with the advantages and disadvantages of using the service, you must also take the cost into account.
Final thoughts
You will be fully in charge of managing all aspects of your business if you choose to sell on Amazon using FBM. You must thus keep your goods before swiftly packing and shipping orders. To ensure that your consumers can access order information on their accounts, you will also need to offer customer support and integrate your business with Amazon.
You may easily set up your FBM account and run your business by following these steps:
- To list your products on Amazon, first create an Amazon Seller Central account.
- Next, make your product listings and develop a visibility strategy.
- Give your account details and check the shipment and handling schedules. Additionally, you must include your contact information for returns.
- Make sure to deliver orders quickly. If you don’t, clients might make claims, endangering the stability of your account.