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What are the Advantages and Disadvantages of Fulfilled by Merchant Amazon?

Amazon FBM is a fulfillment service provided by Amazon that enables online sellers to promote and sell their products through Amazon’s marketplace while retaining accountability for delivery and shipping operations. Simply put, if you are an online retailer intending to sell your products on Amazon, you should always start with an FBM inventory model before shifting to a Fulfilled by Amazon arrangement.

While FBA allows online sellers to put many of their fulfillment procedures on autopilot, more and more firms are opting to an FBM model – in order to get more control over their customer support, shipment processes andinventory management.

Pros of Amazon FBM

Every business operating online is unique, and selecting the best fulfillment model should be based on business requirements, investment objectives, and consumer expectations. Some of the most significant advantages of Fulfilled by Merchant Amazoninclude:

Exposure

As previously said, Amazon has a worldwide reach that is tough to match, particularly when selling online. Selling through the FBA model helps sellers to obtain that visibility and get access to an audience they would not have reached otherwise.

Brand control

For a new firm, brand recognition may make or break a seller’s overall success. FBA purchases are sent in packagingbranded by Amazon, although FBM shipments let a business owner establish and grow brand recognition by using labels, logos, and packagingof their own.

Cost Savings

FBA is more expensive than FBM. Fortunately, a cost calculator is provided by Amazon to estimate FBA pricing. For many firms, an FBM model makes better financial sense. Using a third-party logistics agency might also help you save money on shipment.

Better Customer Support – Amazon’s customer service is notorious for being sluggish, aloof, and, at times, downright untrustworthy. An FBM model gives retailers a better understanding of consumer satisfaction and removes Amazon from the equation. Whether it is a 3PL firm managing complaints ofcustomers or the owner himself, having a strong grasp of the real satisfaction levels of the consumers of a business is still important.

Cons of Amazon FBM

As in case of any inventory fulfillment solution, there are inherent drawbacks to customer satisfaction procedures. Before opting for Fulfilled by Merchant Amazon, some of the most significant disadvantages to consider are:

No Amazon Prime Badge – While a good delivery partner can speed up shipment timessignificantly, losing the Prime badge through Amazon will quickly turn some consumersoff. Sellers that choose an FBM model must still maintain consistent and quick shipping times, and without an FBA model, this obligation is for them to handle- completely.

Increased Prices

When selecting one of Amazon’s fulfillment choices, it is crucial to examine total savings because an FBM model can raise costs if inventory is in excess. If a seller has a large amount of product lying in a warehouse that is not moving, he has to pay storage costs for that merchandise. Therefore, having an accurate grasp of inventory management is critical when picking an FBM model.

Seller’s Liability

Seller liability is both the finest and worst aspect of Amazon FBM. Amazon FBA covers returns andshipping. However, with an FBM agreement, a seller is responsible for everything. Choosing a reliable shipping partner can relieve some of these burdens and guarantee that items can be delivered on time and in good condition.