Increasingly, shipping and delivery services are essential to eCommerce businesses. How and when to receive the purchased products is crucial for customer satisfaction when selling on Amazon and delivering the goods to the customer.
By taking an efficient and streamlined approach, you can maximize profits. Small businesses can benefit from Fulfillment by Merchant (FBM). You can use this guide to learn how Fulfillment by Merchant (FBM) works. Check it out!
What is FBM on Amazon?
Fulfillment by Merchant on Amazon is short for Fulfillment by Merchant. In this fulfillment method, sellers list their products and decide how to manage their businesses. They handle everything from storage to shipping to customer service. FBM is used by about 43% of Amazon sellers along with the FBA method. Of these, 9% only use FBM. The initial setup is relatively simple, so newbies are more likely to use this method than established sellers.
How Does FBM Work?
The Amazon FBM business model is based on the concept that the merchant fulfills orders when a product is sold on Amazon.
1) To create an Amazon Seller Central account, you will need your business information as follows.
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Information about your business (name, address, and contact information)
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Your email address
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Payment information
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Contact information
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Federal and state tax identification numbers
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The return address for eCommerce
2) After you have the above information, register on Amazon and select one of the two plans: Professional Or Individual.
3) Listing the products is the next step. Make sure your products are listed. You can improve conversions by using the right imagery, videos, copy, and more.
4) Now it's time to choose one of two fulfillment options: FBA or FBM. Choosing FBM requires that you find shipping/delivery partners who are cost-efficient and reliable. You must charge less than FBA so your margins are not affected.
5) Your products should now be stored in your own warehouse or fulfillment center. Having many fulfillment centers will make the distribution of the products to strategic locations much easier. Furthermore, your average shipping zone will be reduced and shipping costs reduced. As a small business owner, your home is the best option for a short-term solution. For larger companies, a number of fulfillment centers may be necessary.
6) Delivering your orders on time is the next most important factor. During checkout, Amazon displays its estimated delivery time for buyers, which indicates handling and transit times. These times can be modified by the customer to meet their expectations. By purchasing shipping labels through Amazon or on your own, you must provide eCommerce order tracking for the customer. The return label is sent by Amazon with your default shipping information.
When You Should Use FBM?
Naturally, not all sellers will be successful if they only use one method for their business.
It is not possible to run an Amazon business in a one size fits all manner. If you are a seller who sells exclusive products with low sales frequency, FBM is your best option.
If you're a new seller with minimal inventory, you may want to consider FBM, which will double your exposure and sales opportunities.
The following are the best conditions for FBM:
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Products with a small volume.
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Products with low-profit margins
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Rarely sold products
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Items made by hand
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Heavy, fragile, or oversized products that are hard to ship
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It May require a decent storage facility or a small inventory
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Using a third-party fulfillment service that is cheaper than Amazon FBA
You can either use FBA or FBM method for fulfilling your orders. But choosing a wiser product is more crucial. For finding a great product you have to go with sourcing from many online stores and should not miss out on any discounts.
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