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Fba vs. Fbm – what you need to know about these two completely different logistics models on Amazon

One of the first decisions each Amazon seller needs to take concerns the way goods are sold to the customer. When it comes to the majority of sales platforms across the globe, the choice is simple and it is limited to the selection of the courier company. However, when it comes to Amazon, the situation is different.
Fba vs. Fbm – what you need to know about these two completely different logistics models on Amazon
What is the famous Amazon FBA?

Amazon has one of the most advances order execution networks all over the world. Fulfilment by Amazon is a model in which sellers send goods to Amazon logistic centres, where they are stored.

This is a very convenient solution, thanks to which they don’t have to worry about packaging, shipping and returns.

There are a number of benefits resulting from FBA models and some of them include:

  • Listings are labelled with an Amazon Prime logo
  • Express order completion
  • Access to many useful marketing tools such as: Prime Day, Deal of the day, Lightning Deal
  • Assistance in your company scalability
  • Reaching a larger number of clients
  • Free two-day delivery for Amazon Prime subscribers
  • Trusted customer service all day, seven days a week
  • Favourable prices for product storage
  • Returns managed by Amazon

As we mentioned at the beginning, there is yet another selling model on Amazon, Fulfilment by Merchant. What is it all about?

This is a model in which it is the seller who is responsible for storage, packaging and shipping of goods. Moreover, it is worth highlighting that they are responsible for returns processing. FBM is a solution recommended especially to sellers of sizeable loads. What are the advantages of this model?

  • Increased control over stocks , e.g., best-before date
  • Higher margin levels
  • Branding
  • No need to register for local VAT
  • Higher margin levels
Patryk
Head of Project Management