Both FBA and FBM are Amazon‘s logistics distribution methods.Amazon FBA, or Fulfillment by Amazon, provides related services for sellers by Amazon Logistics. FBM, or Fulfillment by Merchant, is what we call “self-delivery”. Self-built overseas warehouse delivery also belongs to the category of self-delivery.
What is the difference between Amazon FBA and FBM
1. Shipping method
Amazon FBA: The seller needs to prepare the goods to the Amazon warehouse in advance. After the buyer places an order, Amazon is responsible for sending the goods stored in the Amazon warehouse to the buyer in advance.
Amazon FBM: sellers ship goods, Amazon is just a platform for merchants, and merchants need to use international express services to deliver goods to consumers.
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2. Delivery time limit
Amazon FBA because the seller stores the goods in the Amazon warehouse before the buyer places an order, and the buyer can ship directly when Amazon places an order, which greatly shortens the delivery time and greatly improves the ranking of similar names, so sales will be safer.
Most of FBM products are shipped from Amazon sellers’ own warehouses, and there are many uncontrollable factors in terms of timeliness.
However, since this is a direct shipment from the seller’s warehouse, the seller has control over the selection, packaging and quantity of the goods. This greatly reduces the error rate of goods.
Advantages and disadvantages of FBA
No matter how small your item is, FBA sellers can offer a variety of shipping methods.
Amazon customers know what they want and are willing to spend money. According to Amazon data, the average customer is willing to buy goods shipped by FBA. Not just shipping, good customer service is why these customers signed up for Prime.
Amazon FBA is a way of keeping smaller sellers away from the tough competition, ranking your products higher and giving your products a chance to be purchased by customers.
The main disadvantage of FBA is the high cost. Amazon pays sellers monthly warehouse fees. FBA is very expensive for items that sell less.
Advantages and disadvantages of FBM
Advantage:
1. There is no need to stock up, and inventory management is more flexible.
2. The initial investment is low, suitable for sellers who have difficulty in capital turnover.
Shortcoming:
1. It is necessary to find a reliable logistics service provider since the delivery. If you encounter an unreliable one, it will slow down the logistics speed and damage the user experience.
2. Customer service experience such as returns and exchanges is poor.
So, how should the seller choose the logistics distribution method? In fact, there is no good or bad between Amazon FBA and FBM. They both have advantages and disadvantages. Sellers should choose the right one that suits them.
For example, if you are a novice seller, it is not recommended to stock up on a large amount of goods. You can choose a reliable third-party logistics company for self-delivery, and then switch to FBA delivery after the sales increase. These tasks are time-consuming and difficult.
Many people will use both Amazon FBA and FBM to decide which shipping method sells better. Sometimes both have the same advantages. For example, if a specific packaging method or buyer has no requirements for shipping speed, FBM is a good choice.
