One of the first decisions each Amazon seller needs to make is to choose the way their goods are sold. When it comes to the majority of sales platforms across the globe, the choice is usually simple and only requires to pick a specific courier company. However, with Amazon the situation is different as you have Amazon FBA and FBM to choose between. Below, we will show you how Amazon FBA works and what’s Amazon FBM.
Amazon FBA for Beginners
Amazon has one of the most advanced order execution networks all over the world. The Amazon FBA (Fulfilment by Amazon) is a model in which the sellers send their goods to be stored in the Amazon logistic centers. Therefore, this is a very convenient solution, thanks to which the seller doesn’t have to worry about packaging, shipping and returns.
There is a number of benefits of the FBA models, including:
- Listings being labelled with an Amazon Prime logo
- Express completion of the order
- Access to many useful marketing tools such as Prime Day, Deal of the Day, Lightning Deal
- Assistance to help you scale your business
- Reaching a larger number of clients
- Free two-day delivery for Amazon Prime subscribers
- Trusted customer service 24/7
- Favourable product storage prices
- Returns managed by Amazon
How Amazon FBM Works
As we mentioned at the beginning, there is yet another selling model on Amazon. What is Amazon FBM (Fulfilment by Merchant)? In this model, the seller is responsible for storage, packaging and shipping of goods. Moreover, the seller is also responsibne for the returns processing. FBM is recommended especially to the sellers of large-size loads.
What are the advantages of Amazon FBM?
- Increased control over stocks, e.g., best-before date
- Higher margin levels
- Branding
- No need to register for local VAT
- Higher margin levels
Amazon FBA or FBM? The choice is yours!
