Amazon is the largest ecommerce retailer in the world. In this day and age selling your products on Amazon is practically a must. But just because you sell your products on Amazon doesn’t mean that Amazon has to fulfill your orders as well.
While there are some advantages of choosing the fulfilled by Amazon option there are actually a lot of advantages to going the fulfilled by merchant route.
First let’s define exactly what fulfilled by merchant really means.
What is Amazon Fulfilled by Merchant (FBM)?
Fulfilled by Merchant is exactly what it sounds like. It’s a fulfillment option where the merchant is responsible for picking, packing and shipping orders directly to their customers. Merchants can either fulfill the orders themselves or outsource fulfillment to a third party.
Inventory storage, order fulfillment, returns, and customer service all become the responsibility of the merchant. This gives you more options and control over the entire fulfillment process. Let’s discuss what you need to know when choosing to do FBM.
The Basics of Amazon Fulfilled by Merchant
1. You Can Choose Who You Want to Partner With
One of the biggest benefits and things to know about FBM is that you don’t have to do the fulfillment yourself. Fulfilled by Merchant simply means you’re the one responsible for making sure that orders get to where they need to be. Whether it’s the merchant that fulfills orders in house or a third-party order fulfillment doesn’t matter.
This gives you more control over finding a fulfillment company that meets your needs. With FBA you get what you get but there are many other fulfillment companies out there that can offer better pricing, service, etc.
2. Fast Shipping Times are a Must
Amazon has become known for fast and reliable shipping; That’s why it’s no surprise that Amazon holds its FBM sellers to a high standard. Whether it’s you or a third party fulfilling orders they need to go out on time.
Fast shipping times are something to keep in mind if you decide to partner with an order fulfillment company. It’s important to adjust your shipping and handling times to set proper expectations and not get on Amazon’s bad side.
3. More Control Over Your Business
One of the major advantages that FBM offers is the increased control over your business. FBM gives you control over how your orders shipped, returns and customer service. These are all areas where you can build your own brand and stand out among the competition.
With FBA you simply can’t get this level of control. You might not get a Prime badge as a FBM seller but many sellers prefer the control they get. It’s a major trade-off and one you should consider.
4. Great for Multi-Channel Strategies
The two main fulfillment options that Amazon offers its sellers are FBA and Multi-Channel Fulfillment (MCF). While MCF seems like a great option, it’s actually very limited. There are certain channels that Amazon simply won’t fulfill including BigCommerce, Walmart and eBay.
By choosing FBM you can consolidate your shipping operations simplifying your inventory management. Having one order fulfillment company that can fulfill every order can save you time and money when you’re selling on multiple channels.
5. Fewer Fees compared to Fulfilled by Amazon
Choosing FBM means Amazon will charge you fewer fees. That doesn’t mean no fees at all though! There will still be referral fees, per-item selling fee and a monthly subscription fee.
6. More Stability, Fewer Rules and Penalties
Many Amazon sellers find that FBA is more trouble than it’s worth. There are seasonal changes in fees and requirements, especially in Q4, that many sellers don’t want to deal with. These changes can distract sellers from the task at hand and make it difficult to forecast costs.
7. Find Better Support
Another major benefit to choosing FBM is that you can find a better partner that can give you the support you need. To Amazon a small seller is just a number and a drop in the bucket at that. This makes resolving issues and getting the help you need difficult.
Startups and small businesses need more specialized and personal support. As a FBM seller you can go out and find a fulfillment partner that can help give you the support you need to grow your business as a whole, not on Amazon alone.
The Takeaway
While FBA has been touted as the best shipping option that an Amazon seller can choose, FBM can be a great option. With the right order fulfillment partner FBM can even be the better option and help you grow your business.
At Ship Central we’re small business and startup specialists. We love doing what it takes to help businesses grow and promise to treat your business like our business and not just a number.