FBM is an Amazon sales model where sellers are responsible for the preparation of their orders. Also known as Fulfillment by Merchant,sellers are in charge of uploading their inventory to Amazon. This sales model requires a lot of responsibility. This is because the seller has to make sure of the packing work. In addition, you have to ensure the shipment of the order to the customer’s address.
Another management that Amazon FBM sellers have to take care of is returns and guarantee this service to customers. If we are FBM sellers we have to have a good logistics team for the shipment and delivery of products.
How does FBM work?
The process of selling FBM is very simple. As a seller you upload your inventory to Amazon. The next step is for customers to see your products and buy them. Once the purchase is made, you will have to send the products to the customer. Once the delivery is made you will receive the payment. With this sales model, we invest time and resources. Like the FBA model, Amazon keeps 15% of the sale.
Advantages of Amazon FBM
To understand the Amazon FBM sales model well, let’s establish its main advantages:
- You can sell online and offline:by having control of where to locate your products, you can use it for offline sales. No need to charge shipping or delivery costs.
- Business control:FBM sellers are responsible for the preparation and distribution of the product. With this sales model you can control and manage your numbers at all times.
- Build your own brand:You can interact directly with consumers. This will make you adapt to their needs.
- More profit:These sellers do not have to pay for the preparation of their packages. You can consider other options to lower this cost.
Disadvantages of Amazon FBM
On the other hand, we cannot consider it disadvantages,but as an FBM seller you have to guarantee:
- Reply to all customer messages within 24 hours. This is important to build customer loyalty.
- Meet delivery times.
- Comply with shipping standards. If the customer receives the package in poor condition we may receive a negative review or a return.
- Manage warehouse space. To guarantee a fast delivery you will have to have a good warehouse to store your products.
- Returns management. As an FBM seller you have to take care of the return, collection and shipment of the product. Also, take care of the correct refund.