Selling on Amazon is often seen as a shiny object in the world of online business, but we’re here to tell you that selling on Amazon is 100% legit. Specifically, this article discusses Amazon FBM. Detailing the pros and cons, logistics, and everything else that is FBM. Keep reading to find out if its for you.
What is Amazon FBM?
Amazon FBM is Amazon Fulfillment by Merchant. It is an Amazon business model where sellers manage their own shipping, returns, warehousing, and customer service. This is in contrast to Fulfillment by Amazon (FBA), where Amazon takes care of all of these tasks.
There are a few reasons why sellers might choose to use FBM. One reason is that it can be more cost-effective. FBA fees can be high, especially for high-volume sellers. Another reason is that sellers have more control over the customer experience when they use FBM. They can choose their own shipping carrier, offer free shipping, and provide personalized customer service.
When to use Amazon FBM
There are a few factors to consider when deciding whether to use FBM or FBA. One factor is the type of product you are selling. If you are selling a large or heavy product, FBA may be the best option. Amazon has a large network of warehouses, so they can ship these products more quickly and efficiently than most sellers.
Another factor to consider is your volume of sales. If you are selling a high volume of products, FBA can save you a lot of time and money. Amazon will handle all of the shipping and customer service, so you can focus on other aspects of your business.
However, if you are selling a low volume of products, or if you are selling products that are unique or high-value, you may want to consider using FBM. This will give you more control over the customer experience, and it may be more cost-effective for you.
How to set up Amazon FBM
To set up Amazon FBM, you will need to create a Seller Central account and list your products on Amazon. Once you have listed your products, you will need to set up your shipping and returns policies.
Shipping for Amazon FBM
There are a few different ways to ship your Amazon FBM orders. You can ship them yourself, use a third-party shipping company, or use Amazon’s Shipping Partner Network (SPN).
If you choose to ship your orders yourself, you will need to purchase shipping labels and pack your orders. You can also use a third-party shipping company to ship your orders. These companies will provide you with shipping labels and pack your orders for you.
Amazon’s SPN is a network of third-party shipping companies that have been vetted by Amazon. If you use the SPN, you will be able to get discounted shipping rates.
Returns for Amazon FBM
Amazon has a standard returns policy for all sellers, regardless of whether they use FBM or FBA. This policy allows customers to return items for a full refund within 30 days of purchase.
However, you can also create your own returns policy for Amazon FBM orders. This policy can be more lenient or stricter than Amazon’s standard policy.
Customer service for Amazon FBM
Customer service is an important part of any Amazon seller’s business. When you use Amazon FBM, you will be responsible for providing customer service for your orders. This includes answering customer questions, resolving customer complaints, and processing returns.
There are a few different ways to provide customer service for Amazon FBM orders. You can respond to customer inquiries through Amazon’s messaging system, or you can provide your customers with your own email address or phone number.
Advantages of Amazon FBM
There are a few advantages to using Amazon FBM. One advantage is that you have more control over the customer experience. You can choose your own shipping carrier, offer free shipping, and provide personalized customer service.
Another advantage of Amazon FBM is that it can be more cost-effective. FBA fees can be high, especially for high-volume sellers. If you are selling a low volume of products, or if you are selling products that are unique or high-value, you may be able to save money by using Amazon FBM.
Disadvantages of Amazon FBM
There are also a few disadvantages to using Amazon FBM. One disadvantage is that you are responsible for all of the shipping and customer service. This can be time-consuming and challenging, especially if you are selling a high volume of products.
Another disadvantage of Amazon FBM is that your products may not be eligible for Amazon Prime. Amazon Prime is a membership program that offers free two-day shipping on eligible items. If your products are not eligible for Amazon Prime, you may lose out on sales to customers who are Prime members.
Conclusion
Amazon FBM is a proven business model that many, many people have used to gain their financial freedom. If you are someone who likes to create unique products and tailor the customers experience then this business model is likely right up your alley. For more information, check out some of these books. And for insight into other online business models, take a look at some of these articles.
