FBA vs FBM: 6 Factors To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM)?

Ecommerce is expanding at an alarming rate and has experienced a significant uptick in recent years. In 2022, there are more than 2.14 billion worldwide digital buyers, and the trend is expected to continue in 2022 with global eCommerce revenues expected to reach $7.4 trillion by 2025 providing eCommerce fulfillment services is a thriving business, and online marketplaces like Amazon, Flipkart, and many more are at the epicenter for selling.

As a result of the mentioned stats above, small company owners, investors, and individuals working 9-5 jobs are all coming up with online selling businesses each year, many are now flourishing.

Since its inception, Amazon has added various features to its ever-expanding platform, for instance, Fulfillment by Amazon and Fulfillment by Merchant, we will talk in detail about FBA vs FBM in this article.

In 2021, Amazon had 3 million active sellers, based on Jungle Scout’s 2021 State of the Amazon Seller Report.

In the eCommerce fulfillment industry, fast and safe order delivery is critical in e-commerce for both active sellers and purchasers. Individuals and businesses that use the Amazon marketplace to sell their items have alternatives for fulfilling their client orders, which are commonly referred to as Amazon order fulfillment models. 

Table Of Contents
  1. Introduction to Fulfillment by Amazon and Fulfillment by Merchant (FBA & FBM)
  2. Fulfillment by Amazon (FBA)
  3. Fulfillment by Merchant (FBM)
  4. FBA vs FBM: Major Differences Between Amazon FBA and FBM.
  5. Factors to Consider Before Choosing The Fulfillment Model in 2022
  6. Differences Between FBA and FBM- Tabular Comparison
  7. When should you Utilize Fulfillment by Amazon?
  8. When should you Utilise Fulfillment by Merchant?
  9. FBA vs FBM- What is right for your e-commerce business?
  10. Fulfillment by Merchant in collaboration with WareIQ
  11. FBA vs FBM FAQs (Frequently Asked Questions)

Introduction to Fulfillment by Amazon and Fulfillment by Merchant (FBA & FBM)

However, deciding to sell on Amazon is simply the first step. Online businesses will also have to choose one of Amazon’s several fulfillment options to utilize. In addition to the well-known Fulfillment by Amazon technique, e-commerce companies can also choose Fulfillment by Merchant or Merchant Fulfilled Network (MFN). As perplexing as it may appear, in addition to these models, there are further alternatives to employing Multi-Channel Fulfillment (MCF) by Amazon and Seller Fulfilled Prime (SFP). So, to make things as clear and accessible as possible, this article focuses on the two most common solutions – FBA and FBM.

If you are selling or wish to sell on Amazon, you have two basic options for storing, handling, and shipping your products: Fulfillment by Amazon and the Fulfillment by Merchant or Merchant Fulfillment Network.

In this article, after discussing the fundamental concept of the two, we will emphasize the benefits and drawbacks of these two fulfillment models. Finally, we will make it simple for you as to which one is the greatest fit for you.

WareIQ – Amazon-prime Like Logistics for Modern Brands in India

WareIQ, an eCommerce fulfillment company, empowers online brands with a superior-tech platform to compete with Amazon like service levels by bringing their average delivery timelines from 5-10 days to 1-2 days.

"With WareIQ, UTH is able to consolidate common inventory for all platforms and get much closer to the customer through access to WareIQ’s strong nationwide network of fulfilment centres, and last mile & hyper-local courier partners. We are excited about being able to offer same day delivery in several pin codes due to WareIQ."
- Samit Mehta, Founder, UTH Beverages

Fulfillment by Amazon (FBA)

In this fulfillment model, the online sellers themselves advertise their products for sale on Amazon in this arrangement, but Amazon is responsible for keeping those products and completing shipping orders. Sellers do not need to rent or own a place to keep their items, nor do they have to ship orders to their clients.

The Amazon Fulfillment approach does necessitate payment to Amazon for its services and also sending items to Amazon so that its employees can fulfill orders. However, from a risk management standpoint, it is a far easier decision.

To work at a fulfillment center or run a fulfillment network, you do not need to recruit employees. You can simply depend on Amazon’s existing connections to send your items to their destination

However, there may be insurance needs and vendor agreements to deal with If all of this sounds pretty good, you may very well be wondering how fulfillment by amazon (fba) works.

How Fulfillment by Amazon Works

According to Jungle Scout, there are more than 3 million active sellers, out of which 57% are using FBA only, making it the most common fulfillment method for third-party Amazon merchants.

It manages your items and handles customer service concerns like refunds and returns.

But it doesn’t mean Amazon FBA will do everything for you.

As an FBA seller, you’re in charge of listing, selling, and keeping your items supplied at Amazon fulfillment centers.

If your inventory runs out, Amazon will be unable to fulfill orders because they cannot resupply your items.

Sellers must do the following to keep FBA working smoothly:

1. List their items as Amazon fulfillment.

2. Prepare their items for shipment to Amazon fulfillment facilities while adhering to Amazon picking and packaging specifications as well as shipping and routing criteria. This is all explained in FBA prep services.

3. Ship inventory to fulfillment centers to ensure that items are in stock and ready to sell.

Fulfillment by Amazon can provide much-needed relief for large third-party sellers who lack logistics, have high-turnover items, or can outsource fulfillment to Amazon at a lower cost.

However, as predicted, its benefits come at a cost. 

To utilize Amazon Fulfillment services, sellers must pay Amazon platform charges which include Amazon referral fee, closing fee, storage, and warehouse management fees, label service fee, and return and processing fee.

Significant Advantages of Fulfillment by Amazon

Customer Base

Prime delivery is available on items fulfilled by FBA. This implies that buyers who have an Amazon Prime subscription will receive their goods with free 2-day delivery (even 1-day shipping in some areas). Because Prime users are anxious to take advantage of the fast delivery timeframes, this boosts the sales potential of your merchandise inventory.

To put the scale of the possibility in context, there are over 200 million Prime users worldwide. They are far more inclined to buy something with the Prime label than something with ordinary delivery.

Concentrate on Selling Rather than Fulfilling

When it comes to managing your fulfillment, the list of obligations is vast. Hiring, training, keeping track of inventory, negotiating carrier prices, procuring branded shipping materials, sending on time, shipping the proper things…

It’s difficult to run a well-oiled shipping and storage organization. Amazon has a cutting-edge fulfillment infrastructure in place to process and dispatches your items quickly. Furthermore, because sellers do not need to increase employees or warehouse capacity as order volume varies, the Fulfillment by Amazon program allows them to grow simply.

Many Amazon sellers would rather concentrate on product development, marketing, and sales. They are content to let Amazon handle their fulfillment operations on a day-to-day basis.

The Amazon Buy Box

When competing with other Amazon sellers offering the same goods, getting your offer inside the Buy Box is critical.

On a product page, the Buy Box is where the “Add to Cart” and “Buy Now” buttons are situated. A sale made using the Buy Box is only granted to one seller at a time. The Buy Box accounts for 85 percent of all sales.

One of the most critical factors Amazon examines when selecting which vendor gets the Buy Box is fulfillment. Basically, the better your shipping and delivery are for the consumer, the faster, cheaper, more convenient, and more trustworthy it is.

Amazon Warehouses

Access to Amazon’s warehouses is arguably the most compelling reason to use Fulfillment by Amazon. When a seller uses Fulfillment by Amazon, their goods are sent to an Amazon warehouse and stored there until the order is placed.

When customers submit orders, Amazon handles all packing, shipping, customer care, and returns, not the vendor. While Amazon handles all delivery, the merchant can focus on offering high-quality items and processing sales. Because Amazon handles shipment, you’ll find that your shipping costs are lower than previously (especially if you’re selling tiny, light products).

Service to Customers

Amazon handles all customer support and returns processing for your item when you use Fulfillment by Amazon.

While you may lose out on opportunities to communicate directly with your clients, it will reduce the support costs that online merchants must bear.

Amazon Search Engine Optimization

Amazon has been tight-lipped about its A9 search algorithm’s inner workings.

While Amazon won’t say it publicly, it’s widely assumed that Fulfillment by Amazon is a ranking element in the search algorithm. In terms of search, FBA offers are likely to outperform FBM offers if all other factors are equal.

FBA, according to Amazon, has near-perfect scores in all of these areas. As a result, FBA may significantly boost your earnings.

Significant Disadvantages of Fulfillment by Amazon

Costs Associated with Fulfillment

You should not underestimate the fulfillment costs as an FBA vendor. Amazon is a major e-commerce operator, and they will accept your payment. Every product you sell will be charged for picking, packing, packaging, shipping, returns management, etc. In most circumstances, the prices will be greater than working with a 3PL service provider.

Storage Expenses

The same may be said about storage expenses. Cubic meters or cubic feet are the units of measurement. Be aware that storage fees, particularly for lengthy periods, might be prohibitively expensive. Also, keep in mind that Amazon charges extra Q4 storage costs for the final quarter of the year. Even though Amazon straightforwardly communicates this, many sellers do not account for these additional fees and are astonished when they are charged.

Additional Fees

High fees are one of the biggest disadvantages of utilizing Fulfillment by Amazon. It must be factored into your profit margins and, as a result, will diminish your earnings. As a result, Fulfillment by Amazon is more suitable for tiny and lightweight objects. All of this is on top of the standard Amazon costs that every seller must pay to conduct business on the platform.

On top of that, there are inventory storage expenses, amazon referral fees, closing fees, storage, and warehouse fees, label service fees, and return and processing fees to consider. These are the fees you must pay to Amazon to have your items stored in one of their fulfillment centers. It depends on the length of time you plan to keep your stuff as well as the size of the item.

Absent Administration

While it’s great that your purchases are delivered quickly, you lose control of your inventory and other crucial aspects of running an internet business. If you offer things that are pricey or not self-explanatory, you should think twice about whether or not to utilize Fulfillment by Amazon. One of the reasons for this is that Amazon will repay consumers without first determining whether or not the claims are true. For online merchants, this can be quite costly; nevertheless, Amazon’s objective is to get customers to return to Amazon, therefore they don’t care whether returns are costly for the seller.

You may like: Amazon FBA alternatives

Fulfillment by Merchant (FBM)

Fulfillment by Merchant, also known as Merchant Fulfilled Network (MFN), is a fulfillment method in which an Amazon seller is responsible for the order fulfillment of the items offered on Amazon. This procedure, which includes storage, picking, packaging, and labeling, can be handled in-house or by a third-party logistics (3PL) partner. In addition, 3PL firms frequently incorporate returns management and customer support services in their packages (to assist merchants with parcel clarifications, among other things).

How Fulfillment by Merchant (FBM) Works?

This route isn’t as common as the FBA route, with only 43% of Amazon merchants preferring it to fulfill orders.

Fulfilled by Merchant is exactly what it sounds like, the merchant fulfills orders when their items are offered on Amazon, either through self-fulfillment or through a third-party fulfillment center.

Because Fulfillment by Amazon needs a few approvals, shows inventory turnover, and takes time to set up, FBM is generally the sole fulfillment method available to new merchants selling on Amazon. Small businesses are more likely to fulfill orders personally, but bigger merchants are more likely to use a logistical network.

Here are a few steps to Fulfillment by Merchant setup and get it running :

  • List Your Products on Amazon

You may start listing your items once you’ve created an Amazon Seller Central account. Using the correct graphics, videos, language, and more, be sure you provide the information needed on your listings to assist enhance your chances of conversion.

Make sure you have an Amazon marketing plan in place. Many Amazon sellers are cutting back on ad spending in these uncertain times, which might be a chance for your marketing money to go a lot further.

  • Store items at your fulfillment center.

You may be able to distribute your items to strategic places to save on shipping costs and minimize your average shipping zone, depending on the number of fulfillment centers you have at your disposal. If your company is still tiny, a storage facility or even your house might serve as a temporary warehousing option.

When you get an order notice, you must send the product within the customer’s specified delivery window. On the offer and checkout pages, Amazon shows consumers an approximate delivery time so they know when to expect an item they purchased from you. This takes into account handling and transportation delays. To properly set client expectations, you can change your shipping and handling time and transit time.

You may order shipping labels from Amazon or print them yourself. In any case, you must always give the consumer eCommerce order tracking.

Finally, for all Fulfilled by Merchant orders, make sure you update your Amazon selling account with acceptable eCommerce return instructions. When you authorize a buyer’s return request, Amazon sends them a return label with your default return address, which must be legitimate.

Significant Advantages of Fulfillment by Merchant

Multi-Channel Approach

Online shops may better execute and coordinate a multi-channel approach by fulfilling orders directly or with the aid of a 3PL firm. E-commerce enterprises may use FBM to coordinate many channels other than Amazon while still keeping track of stock and inventory. As a result, inventory from both online and offline channels may be merged, allowing for better storage, selecting and packing, shipping, and returns management.

Cost-cutting

The cost reductions are, without a doubt, the most significant advantage of FBM. Merchants with competence in selecting, packing, and shipping may discover that they can handle all logistics for less than what Amazon charges.

The cost savings per order might not be considerable, especially if the items are little and/or light. For huge and bulky products, on the other hand, the benefit may be readily apparent. Similarly, cost reductions may pile up quickly over time.

Complete Control Over Marketing, Merchandising, and Branding

Some retailers may place a high value on branding. They might utilize their packaging materials, which are branded with the company name, to promote the product more. This is not an option available through Amazon FBA.

Branded packaging adds to the company’s marketing efforts. Most buyers aren’t aware of the added benefit of having packaging that is tailored specifically to the items being offered. They like the attention to detail and are more inclined to use a product with branded packaging in the future.

The widespread practice of emphasizing purchases on the internet has given branded packaging a whole new meaning. Unboxing videos are still popular. On social media, photos emphasizing purchases are widespread. The marketing value of a basic brown box is incomparable to the marketing benefits obtained by dynamic packaging. 

Changes in Regulations Can Be Avoided

Amazon has been known to update its rules and restrictions regularly. By utilizing Fulfillment by Merchant, the company may avoid regulatory changes that could cause service disruptions.

If Amazon changed its labeling standards, for example, a retailer would have to rethink how it handles delivery. Every modification Amazon makes can cost the merchant extra time and money, whether they label their items themselves or outsource the process to a third-party logistics provider.

Fulfillment by Merchant Prime Shipping 

It is a feature given by Amazon to Fulfillment by Amazon sellers. However, there is a program called Seller Fulfilled Prime that you may enroll in. A merchant must commit to and verify that they can supply two-day shipping at no additional cost to qualify for Seller Fulfilled Prime.

A Seller Fulfilled Prime seller must complete a trial period to demonstrate that they can keep up with Amazon’s fulfillment center alternatives. The conditions are stringent and severely enforced:

  • Picking orders on the same day
  • The order cancellation rate is less than 1%.
  • At least 95% of orders are delivered on time.

Easy To Launch Business and Generate Better Revenue Generation

FBM users establish their Amazon enterprises faster than FBA sellers, according to the most recent assessment on the condition of the Amazon seller in 2020. The apparent answer is that Fulfillment by Merchant vendors have greater freedom to operate as they like and are subject to fewer constraints.

In the end, it’s all about the money (most of the time). As a result, many sellers choose Fulfillment by Merchant. FBM vendors reported better profit margins than their fulfillment by amazon rivals. They also mentioned higher lifetime profits. The key reason for this is that the fulfillment option has cheaper Amazon costs.

Significant Disadvantages

The Absence of a Buy Box

It’s uncommon for fulfillment by merchant order to appear in the Amazon Buy Box. Without a highlighted item, a merchant is nearly certain to lose a sale to a firm that uses Fulfillment by Amazon.

Seller Fulfilled Prime is the only legitimate way for a seller that fulfills orders themselves to be included in the Buy Box. However, this is a tough procedure that may be almost as expensive and time-consuming as Amazon FBA.

Lower Search Engine Rankings

Customers can choose to disregard any goods that are not part of the Amazon Prime program, as previously mentioned. Merchant sellers who provide fulfillment may find themselves omitted from client searches. Even if the merchant has lower pricing and superior quality, potential shoppers may never notice it.

A paucity of search results might also be due to poor search engine optimization. Amazon sellers benefit from the company’s search engine optimization. Even if the site user hasn’t ruled out non-prime products, they will nearly always appear before things supplied by an Amazon merchant.

Returns and Customer Concerns

Fulfillment by Amazon allows Amazon to handle all aspects of customer service, including returns. If you don’t want to use Amazon FBA, you’ll have to handle any customer complaints on your own.

This may be a good thing. When an Amazon seller has control of CSR, they may establish a reputation based on customer service and happiness. If clients are dissatisfied with their service, the Amazon seller can make the required changes. With Fulfillment by Merchant, this is not feasible.

Unfortunately, the merchant will almost certainly spend far more time and money training and employing employees than if they had paid for Amazon FBA from the start. A vendor may also opt to work with a third-party CSR business.

FBA vs FBM: Major Differences Between Amazon FBA and FBM.

Definition

Before talking about FBA vs FBM, let’s know about their basic meaning.
Fulfillment by Amazon is an order processing mechanism in which Amazon accepts responsibility for all client orders for a merchant’s product. Picking, packaging, shipping, and customer service are examples of typical Amazon actions in this regard. Under this approach, the merchant has no involvement in order processing. Fulfillment by Merchant, on the other hand, refers to the procedure in which the merchant keeps the merchandise himself (in their home or a leased warehouse) and handles the packaging and shipment. Under the Fulfillment by Merchant approach, Amazon is not involved in order processing.

Controlling and storing inventory

Inventory is held in Amazon fulfillment centers under FBA, whereas inventory is stored at the merchant’s own or rented warehouse in Fulfillment by Merchant. As a result, the merchant has very little control over his product inventory, but an FBM merchant has more control.

Customization of the packaging

Fulfillment by Amazon entails Amazon taking care of the packing, which is normally standard for all of the items it distributes. However, under Fulfillment by Merchant, the seller is responsible for the packaging, which implies that the merchant can personalize a package to make it more appealing to the client.

Product Shipping

Under FBA, the merchant delivers his product inventory to Amazon’s warehouse, and Amazon then ships the items to customers after receiving an order from him. The merchant, on the other side, sends things directly to clients under fulfillment by the merchant.

Customer Service

In the FBA model, Amazon handles customer support, exchanges, and returns, whereas, in fulfillment by the merchant model, the merchant is responsible for all of these operations.

Fees and Other Related Expenses

Amazon charges FBA sellers an order handling/fulfillment fee as well as inventory storage fees. FBM merchants are not required to pay these fees to Amazon; instead, they must cover their expenditures, such as employee salaries, warehouse rent, and shipping costs.

Customers’ Favourability

Customers are more inclined to purchase items that carry the Amazon Prime logo and are delivered by Amazon because of the free two-day shipping. Because FBMs are fulfilled by the merchant, they are less popular and take longer to deliver. As a result, fulfillment by the merchant may miss out on several clients who normally choose items labeled as prime.

Dimensions and Weight of the Product

When selling on Amazon, product size and weight are two of the most important things to consider when choosing an order fulfillment plan. Because Amazon normally charges additional storage, handling, and shipping fees for items that are heavier and bigger in dimensions than Amazon’s standard product weight and size, the Fulfillment by Merchant may be a preferable alternative if the product is heavy and large. For lightweight and small-dimension items that don’t surpass Amazon’s regular weight and size constraints, Fulfillment by Amazon may be a better option.

Factors to Consider Before Choosing The Fulfillment Model in 2022

Dimensions of Package

The cost of shipping is higher for heavier items. This should be a big consideration when determining which route to take, depending on the size and weight of your things.

You’ll have to bear the costs in fulfillment by the merchant and have to pay for shipping, handling, or packing, while FBA sellers pay the charges as a whole which include shipping, handling, and packing.

FBA users are charged based on the size and weight of their things, which makes it perfect for smaller items like books. However, if a seller is selling something heavier and bulkier, such as a couch, fulfillment by the merchant will almost certainly be more profitable.

Controlling and managing the customer experience

Although one approach is more hands-on than the other, both allow you to improve customer experience in distinct ways

Fulfillment by the Merchant gives you greater control by allowing you to communicate directly with your customers.

Fulfillment by Amazon, on the other hand, allows you to brag about customer-pleasing features like the Prime badge and the “Fulfilled by Amazon” label.

Feedback From the Seller

Customers may browse reviews and comments from others who have purchased your goods using Amazon’s “seller feedback” function

More than 80% percent of customers examine reviews before making a purchase choice since the fulfillment done by the merchant is more actively involved in their online consumers’ experiences. As a result, they will have more control over their client’s comments.

Rate of Product Turnover

Your choice of tactics will be influenced by how rapidly you sell things.

If an FBA seller has a higher turnover rate, they may be charged long-term storage fees, which will reduce their profit margins.

As a result, many vendors with higher product turnover rates opt for Fulfillment by Merchant to avoid the additional expenses.

Expenses 

The costs for Amazon FBA cover the services Amazon provides for you, such as inventory warehousing and order fulfillment.

Various fulfillment and storage costs become business expenditures for FBM sellers, who are responsible for managing them.

Logistics

Picking, preparing, and delivering products for an Amazon e-commerce firm can take a lot of resources, processes, and personnel.

Some vendors prefer to manage it themselves, while others prefer to have Amazon handle it.

Differences Between FBA and FBM- Tabular Comparison

Differentiating FactorsFBAFBM
DefinitionFulfillment by Amazon is an order processing approach in which Amazon fulfilment centres fulfil and process consumer orders.Fulfillment by Merchant is an order processing methodology in which merchants fulfil and process client orders directly.
Inventory ManagementAmazon fulfilment centres contain inventory, which is overseen by Amazon employees.Sellers keep their inventory in their own or rented warehouses, and they manage it themselves.
Packaging and CustomizationBefore the goods is dispatched, Amazon is responsible for packaging it.The seller does the packing, which allows the merchant to personalise the package.
Product ShippingThe merchant sends the initial shipment to Amazon's warehouse and then Amazon takes care of the delivery to the buyer.Customers receive direct delivery from the seller.
Customer ServiceCustomer support, including exchange, return, and refund requests, is handled by Amazon.Customer service is handled by the merchant.
Fees and Other ExpensesAmazon charges the merchant a fee for inventory holding and order fulfilment.There are overhead expenditures such as warehouse rent, packaging, and shipping, that are to managed by the merchant.
Customers' FavorabilityBecause of prime eligibility, it is more popular among Amazon customers.Less popular as customers mostly give preference to FBA products
Dimensions and Weight of the ProductSmall and lightweight goods that don't exceed Amazon's usual weight and dimension constraints may be a better fit.In the event of big dimensions and heavy weight items that surpass the stipulated standard weight and dimensions, this option may be selected.

When should you Utilize Fulfillment by Amazon?

Fulfillment by Amazon might be the ideal road for you if you don’t mind investing a little money to get your Amazon business off the ground (or keep it running smoothly).

In return for paying (possibly costly) Amazon fees, FBA is for individuals who wish to get rid of their company’s process of preparing items for delivery and replying to consumers.

To put it another way, It is ideal for sellers who want to outsource the majority of the complex process of online selling.

Furthermore, this model is better suited for selling on Amazon, their website, or marketplaces that do not prohibit FBA use. FBA sellers are more likely to lack their warehouse, facilities, and employees to properly package, ship, and provide customer care.

As a start-up, using Fulfillment by Amazon may be both dangerous and beneficial and on the one hand, it facilitates the start of your e-commerce profession (with eCommerce logistics already in place)

However, if your items don’t sell quickly or you decide that this fulfillment model isn’t for you, you risk losing money.

When should you Utilise Fulfillment by Merchant?

Fulfillment by the Merchant is ideal for sellers that want complete control over every aspect of their business (from product packing to customer experience) and are willing to invest additional resources to compete with sellers who dominate the purchase box.

Sellers that use Fulfillment by Merchant may find it simpler to diversify their e-commerce platforms because there isn’t any constraint on the specific marketplace for selling.

In the end, you’re taking on more responsibility, which might lead to higher FBM rewards.

FBM is likely the best option for you if you prefer better profit margins over Fulfillment by Amazon fees or monthly membership charges in return for more flexibility.

FBA vs FBM- What is right for your e-commerce business?

So, what’s the verdict on the FBA vs FBM or Fulfillment by Amazon vs Fulfillment by Merchant debate after all of this? The answer is that it is dependent on your company and plan.

Fulfillment by Amazon is best suited to tiny, lightweight items that sell rapidly and in large numbers because of its price structure.

It may also be appropriate for enterprises that lack the necessary storage, handling, shipping, and customer support capabilities. Amazon will handle everything while you focus on other aspects of your business, such as online marketing and sourcing.

Remember that seller ratings are crucial to Amazon Marketplace’s success, so if you can’t supply these services efficiently on your own, choose Fulfillment by Amazon.

For large, heavy products with tiny margins, fulfillment by the merchant is the best option. It’s also a good idea for one-of-a-kind or limited-edition items. Fulfillment by the Merchant will also avoid Amazon’s storage costs if inventory turnover is slow.

Shipping and customer service are likely to be in place for well-established enterprises selling through several channels. They can simply invest in specialist support software to increase productivity. The fulfillment done by merchant option is also available to start-ups who wish to develop their independent brand.

It might be difficult to decide whether or not to employ Amazon fulfillment services. Use a fulfillment cost calculator to assess your prospective Amazon Fulfillment fees if you’re still undecided in this discussion. Alternatively, you can register for both and manage your online selling in parallel.

Fulfillment by Merchant in collaboration with WareIQ

As a Fulfillment, WareIQ has ready-to-use connectors that can be set up in minutes. Other benefits of employing WareIQ fulfillment services for Amazon merchants include:

  • Possibility of using branded packaging as a highly effective branding and marketing strategy
  • More profit margins and fewer fees
  • Low shipping prices, since 3PLs, have a lot of negotiating leverage with carriers because they bulk their clients’ shipments
  • Fulfilling orders easily if the Amazon merchants are selling on other marketplaces too
  • Easy integrations of WareIQ fulfillment platform with 20+ other marketplaces to fulfill Amazon orders as well other marketplace orders
  • Increased autonomy and flexibility
  • Having access to a global logistical network
  • Prime options have the same delivery speed as Prime options

The best thing is that Fulfillment by Merchant sellers who use WareIQ fulfillment services don’t have to handle a single package, ensuring a hassle-free fulfillment solution while still having the opportunity to establish a strong brand. Staying flexible and being able to establish a strong e-commerce brand while not devoting too much time to fulfillment and shipping provider discussions will result in a bullet-proof business solution for merchants, ready to scale up your e-commerce firm.

FBA vs FBM FAQs (Frequently Asked Questions)