When selling on Amazon, selecting the right fulfilment method can make a big difference in your business’s success. Amazon offers two main fulfilment options: Fulfilment by Amazon (FBA) and Fulfilment by Merchant (FBM), each with its own set of advantages and challenges. Additionally, there’s a hybrid option known as FBM Prime that combines elements of both FBA and FBM. In this blog, we’ll break down the key differences between these methods to help you choose the best fit for your business.
Comparison of Amazon FBA, FBM, and FBM Prime
Aspect | FBA | FBM | FBM Prime |
Fulfilment | Amazon handles storage, packaging, shipping | Seller manages storage, packaging, shipping | Seller manages storage, packaging, shipping (Next day delivery needed) |
Prime Eligibility | Yes | No | Yes |
Customer Service | Handled by Amazon | Handled by Seller | Handled by Seller |
Buy Box Advantage (if priced the same) | Higher Chance | Lower Chance | Moderate Chance |
Fees | Storage and fulfilment fees | Lower fees, no storage fees | No additional fees, but must meet Prime standards |
Control | Less control over packaging and handling | Full control over packaging and handling | Full control over packaging and handling |
Global Research | Yes | Limited to seller’s logistics | Limited to seller’s logistics |
Choosing the Right Fulfilment Method
Amazon FBA:
FBA is ideal if you want to leverage Amazon’s extensive infrastructure for storage, packing, and shipping. It’s particularly beneficial for reaching Prime members and minimising your logistical responsibilities. However, it comes with fees and less control over the fulfilment process.
Amazon FBM:
FBM offers greater control over your fulfilment operations and often involves lower fees. It’s suitable if you want to handle your own shipping and customer service but means you’ll miss out on Prime benefits and may face challenges in winning the Buy Box.
FBM Prime:
FBM strikes a balance between control and Prime benefits. It allows you to maintain control over your fulfilment while offering fast shipping similar to FBA. However, it requires meeting Amazon’s strict performance standards, which can be demanding.
Conclusion
Deciding between FBA, FBM, or FBM Prime depends on your business needs, product types, and operational capacity. FBA is great for those looking to scale quickly with Amazon’s support, FBM is better for those who want more control and lower fees, and FBM Prime offers a middle ground with the benefits of Prime but demands high performance standards.
By understanding the pros and cons of each option, you can make an informed choice that aligns with your business goals and enhances your selling strategy on Amazon.
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