Amazon is the world’s largest e-commerce site. If your products are listed and sold in the marketplace, you will be able to appear in front of a large audience. Amazon gives sellers the ability to complete the order themselves or lets Amazon handle the execution of the order. Let’s discuss FBM (Fulfilled by Merchant) with FBM the seller is responsible for stockholding, order fulfillment, return, and customer service. Amazon FBM is usually the only implementation method available to new sellers selling on Amazon because FBA requires multiple approvals, displayed inventory turnover, and setup time. Smaller sellers are often able to handle orders on their own, while larger sellers are more likely to use logistics networks to process orders.
Amazon FBM advantages:
Once you have created an account with Amazon Seller Central, you can start listing your products. Be sure to include in your lists the information you need to increase your chances of conversion. Depending on the number of complementary centers at your disposal, you can distribute your products strategically to save shipping costs and reduce your average shipping area.
When you receive the order notification, you must ship the item according to the delivery time selected by the customer. Amazon provides shoppers with estimated delivery times on offer and checkout pages so customers know when to expect an item ordered from you. In case of return when you approve a buyer’s product return request, Amazon sends the buyer a return tag with your default return address, which must be the correct return address.
You do not need to use Amazon packaging with FBM. That way, people will associate the whole ordering and completion process with your brand, giving you a better chance of making an impression, and also you can avoid other requirements that may be met by Amazon, such as strict labeling and warehouse delivery rules, which often cause problems for new businesses.
Losing the Amazon Prime badge is the biggest tragedy for many people. FBM products are not eligible to use this tag and many consumers purchase on a prime design basis.
Growing marketing costs are often accompanied by a loss of prime badge because you need to protect your product and drive more organic traffic. You may want to increase your search costs by product category and run advertising campaigns that highlight your delivery potential within a day or two so that people are willing to take risks.
If you have your warehouse, you have to give more time and manage all the sub-expenses like heating and cooling, staffing, parking maintenance, etc. Here is some other content related to Is amazon fba profitable.
Amazon FBA has many advantages, though it may seem difficult it is a reliable and useful option for businesses that need to control their execution and customer relationships. At the end of the day, you’ll know if this measure gives you a combination of cost savings and control over customer interactions that you need to maintain or increase your existing sales. Order fulfillment is important to your brand and business, so be prepared to test several options to find out what works best for you.