As you know, Amazon is an online marketplace that allows buyers to find their desired products from different sellers all over the globe. Thousands of sellers have their products listed on Amazon’s website with nearly 300 million customers and if you're new to selling on Amazon, setting up your inventory is one of the most important parts of getting started. Amazon sellers fulfill millions of orders every day, and a disproportionate number of those orders are fulfilled by Amazon or either by their sellers.
When it comes to Amazon Shipment Plan, there are two main options for sellers. The first is Amazon Fulfillment by Amazon (FBA) and the second is Amazon Fulfillment by Merchant (FBM). When starting on Amazon, most new sellers opt for the FBA route as it’s quick to set up and gives them access to several benefits. However, selling via FBA isn’t the only option available. Many sellers choose to sell using an FBM account instead. In fact, since 2012, Amazon has been actively encouraging sellers to use FBM services over FBA.
In this guide, we'll walk you through which Amazon shipment plan is the best to select for your inventory, so you can start making sales as soon as possible!
Fulfillment by Amazon (FBA)
It is a program that allows sellers to send their products to Amazon warehouses and let Amazon handle the order fulfillment process. This is called Fulfillment By Amazon (or FBA) and it offers sellers the opportunity to ship their products to Amazon warehouse, where Businesses that sell on Amazon may find themselves asking, "How can I fill my inventory more efficiently where they can be stored, managed and shipped with speed and precision?'
Why Choose Fulfillment by Amazon
Amazon has opened up the world of e-commerce and some of the most successful companies in the world now rely on Amazon fulfillment to take care of their supply and distribution needs. The growth of Amazon fulfillment is nothing short of phenomenal, with the number of FBA (fulfillment by Amazon) sellers doubling year after year.
It’s easy to see why this is such a popular option for businesses. Companies like these can scale their operations without having to worry about increasing their headcount or investing in expensive new infrastructure.
Amazon fulfillment options are the best ways to fulfill orders and minimize your storage costs. With FBA, you pay Amazon for storage space, but Amazon also picks and packs your products, ships them, and takes care of customer service.
Ever wonder how Amazon sellers can sell on Amazon and make a killing?
The answer is fulfilled by Amazon.
Yes, Fulfillment by Amazon is a service that enables Amazon sellers to ship their orders or those of third-party sellers. FBA offers several benefits that you should consider when deciding whether it’s the right choice for you. As a seller, you can send your products to Amazon warehouses, where they are stored and shipped or delivered from Amazon facilities all over the world to your customers on your behalf.
FBA allows you to handle all the packaging and shipping yourself, which helps you save time and money. You just need to select the shipping carrier and delivery date. Also, you can store your inventory in one of the more than 100 warehouse centers. This makes it possible for you to start an online business without much hassle. You can focus more on marketing, branding, and other aspects of your business instead of taking pick, pack ship headaches.
Fulfillment by Merchant (FBM)
FBM is the other option of Amazon shipment plan where sellers decide to ship their product directly to their customers, he is the one who takes responsibility for pick, pack, and ship and manages their inventory storage and returns by himself, or he can use third-party logistics for this purpose instead of using FBA option.
Why choose Fulfillment by Merchant?
Fulfillment by Merchant (FBM) is a good option if you’re operating in a niche category or have a huge supply of inventory. In this case, you ship out items individually when they’re ordered. In other cases, sellers also have to bear inventory limitations issues when they use FBA services.
The reasons why we should use FBM is many, sellers adopt FBM because fulfillment by Merchant is a simple and economical method instead of FBA, it means that instead of paying shipping charges to Amazon you can ship the product to the customers from your warehouse, without using FBA medium and maximize your profit, or you ship the product from the vendor directly to the customer.
To whom Amazon Fulfillment by Merchant shipment plan is the right choice?
As a seller, you have the option to ship new products directly to Amazon warehouses using Fulfillment by Merchant or outsource the shipping process to third-party logistics.
Amazon Fulfillment by Merchant (FBM) is a great option for those sellers who not only want to store their inventory in their warehouses but also want to maintain their customer service operations. With FBM, you can list multiple products using the same ASIN, and each product will be fulfilled based on its availability and customer sales rank.
The Amazon Fulfillment by merchant (FBM) is an excellent service that helps you make your products available to Amazon customers directly. You can find out the reasons for returns instantly and handle them. No matter if you’re a large company or a small business selling on Amazon, you can leverage FBM to get more out of your already existing infrastructure and grow your business.
Many factors need to be considered when choosing your shipment plan like which one is the best for your needs or the product type, the market demand, shipping costs, storage facilities, etc. No matter what, you have to select between the two methods. You should count all factors to make the most out of this business as an Amazon seller.