Selling on Amazon is known to be one of the most profitable business nowadays. About 77 % of shoppers buy the products online. Amazon has become the largest marketplace in the world which has opened the doors for numerous small sellers who can list and catalog their products online and sell it and make profits out of it. But in order to do that, there are few things amazon sellers need to decide before jumping into the amazon seller account, and amongst that, there is choosing between Amazon’s FBM and FBA.
We have already covered FBA and its advantages in the previous blog.
Now let’s talk about FBM which means Fulfilled by Merchant.
Selling on Amazon isn’t a walk on cake FBM is when sellers list their products by their own on Amazon and choose to deliver those products to each buyer by themselves. Understand in this way, amazon sellers are responsible for fulfilling their orders on their own and do not rely on Amazon like FBA sellers. FBM comes with its own advantages and benefits and we are going to discuss those below.
So buckle up and read all the points of FBM benefits and if you face any difficulty or an issue don’t hesitate in asking in the comment section.
Control over inventory
Naturally, control over your inventory is the major benefit with FBM and some sellers consider this the major factor of opting FBM. You store, you pack, and you ship products to each customer by your own hands, and you can access your inventory whenever you want. This allows you more ownership over your online business.
Lesser amazon fees
Selling with FBM you are going to skip on paying the fulfillment fees and the storage fees associated with selling FBA. Clearing out your doubts my friend, you still pay for referral fees and closing fees. Amazon fees are based on the size of items so if you have large items with low margins chances are FBA would cost you more and opting FBM would be profitable for you
Good for new and small sellers
Shelling out extra money for warehouse and amazon’s storage is an extra expense that is not required for new sellers. Usually, new and small sellers don’t have a surplus amount of inventory and they can easily keep their products either at their home or at the personal property. Most of the new sellers start with this method only, and when they start seeing the profits they can act accordingly.
Slightly higher profits
It’s simple math when you are cutting out extra fees it is a bit obvious that your profit margins will increase on each product (depending on the product). However, you are less likely to drive sales especially if you are not a prime seller (With FBA you become a prime seller). Over half of the Amazon buyers have a Prime subscription and they are likely to buy from the prime seller because of the obvious reason, after all, they have paid annual fees for 2 days shipping.
Final thoughts on this
FBM (Fulfilled by Merchant) has its own benefits and disadvantages, and what are those disadvantages read it here. Again it’s entirely up to you which way you choose to walk upon. But if you ask me? Then I would say if you are new into this game, like if you are a new seller or running on a small scale, and have some spare space at your home then definitely start with FBM. Always take tiny steps in starting, to succeed in any business. Also if you want our help in selling all of your products in one go, Then do give us this opportunity to serve our young sellers with the promise of guaranteed sales or 100 percent money-back guarantee too.
Good luck in advance and if you have any doubts or views to share do share with us in the comment section below.