What Is Amazon FBM, And How Does It Works?
If you are an Amazon seller, you heard about the two fulfillment options, FBM and FBA. Some sellers choose the Amazon FBA, whereas others use the Amazon FBM due to its unique features and benefits.
Amazon FBM brings many benefits. In this article, we will give you insights on Amazon FBM, including its meaning and how it benefits your selling business. If you want a quick idea of complete information about Amazon FBM, feel free to check https://www.zonbase.com/blog/amazon-fbm-why-you-may-want-to-use-it-now/.
What is Amazon FBM
Amazon FBM is the short name of Amazon fulfillment by merchant or merchant fulfilled network. This fulfillment option is where the seller handles the complete product processing, from packaging to shipping to customers.
It can be done in two ways: FBM sellers can maintain the entire process by themselves or get help from a third-party logistics services provider.
In both ways, the merchants are responsible for storing and packing the inventory, returns, order fulfillment, and customer service.
How does the Amazon FBM work
Amazon sellers who want to fulfill their orders by itself, having the choice between the two plans to choose from. Every plan will affect your shipping costs in a different manner.
- Individual selling plan
Sellers who choose the individual plan will use the Amazon fixed shipping rates for all products. It means sellers have to ship the order at their cost even if the standard shipping credit is lowered than the overall shipping cost.
In this, it is suggested to price your products accurately to ensure that you are earning profits.
- Professional selling plan
The second plan, the professional selling plan, allows the FBM sellers to set their shipping rates. This plan provides more freedom to sellers to make shipping templates that fit their logistic capabilities.
For example, you can easily customize the shipping templates based on the regions where you deliver the products. You can easily customize the shipping fees by order, weight, and item.
When should you choose the Amazon FBM?
There are some circumstances when choosing the Amazon FBM is proven good for you. Here is the list of certain cases when using the Amazon FBM is good for your selling business
- Sell handmade, exclusive, or customized products
- Have heavy and large items to sell
- Maintain the less inventory and sell the low volume of products
- Want to easily manage customer services and returns
- Having lower margins and profits
- Have enough space for storage, etc.
Best practices for Amazon FBM sellers
You can become a lucrative FBM seller on Amazon if you use the best practices while selling the products online.
- Use the “buying shipping” option on Amazon
- Incorporate the good return plan
- Maintain the delivery items
- Always give the tracking numbers
Amazon FBM is the best fulfillment method that brings many benefits to sellers. It is because sellers have control over the entire process. Using the Amazon FBM fulfillment method is good practice for your profitable business.