There are 310 million users on Amazon around the globe, making it the biggest retailer on the internet. With such a massive number of users, selling on Amazon is a lucrative option.
When you become an Amazon seller, you can mainly manage and ship your products in FBA and FBM. Both ways have pros and cons, but our focus is on FBM today.
Do you know what is FBM Amazon and how to sell your products through it?
Let’s find out!
What Is Amazon Fulfillment by Merchant (FBM)?
Fulfillment by merchant or FBM is a way of selling goods by managing them yourself. When you sell through Amazon, FBM is typically called Merchant Fulfilled Network.
In FBM, merchants or sellers are in charge of warehousing their inventory, fulfilling orders, shipping goods, and offering customer service. Through this shipping method, they handle the entire fulfillment process but still get their products listed on Amazon.
Furthermore, they have to pay a referral fee to sell through FBM on Amazon. In fact, any sale they make through Amazon is a referral.
How Does Amazon FBM Work: A Step-by-Step Guide
Now that you understand what is fbm Amazon, you can consider this selling method to run your e-commerce business smoothly on Amazon. However, you’ll need to organize your warehousing and shipping first. And so, you should pick a warehouse location that reduces shipping costs. Additionally, you should have the inventory needed to fulfill all the orders you’ll receive.
Let’s dive deeper into how FBM works!
1. Amazon Seller Central Account
To get started with Amazon FBM, you require a new account, but you can also use your customer details.
While opening an account, you’ll choose between these selling plans:
- Individual: You’ll pay Amazon $0.99 each time you sell an item. The individual plan is better for those who sell under 40 goods per month.
- Professional: You’ll pay Amazon $39.99 each month. In this plan, you won’t have to pay the $0.99 per item fee.
Next, you’ll enter your company details and billing information. After that, you’ll give your store a name and tell Amazon your role in your business. The last step in creating a seller login is Amazon verifying your account.
2. Product Listing
Your goods will have to be on Amazon for customers to buy them ― but how do you put your products on their website? This is where product listing comes in.
For product listing, you’ll need to write down the details of your products in your seller account. Additionally, your products need titles and clear images that tell your customers exactly what the good is.
Plus, a clear yet short description of features will aid customers in comprehending the value of your goods. You should also add a size guide for your products. And if you want, you can even provide a way for customers to ask you questions about your products.
If you’re switching from FBA to orders fulfilled by merchant Amazon, you can use the listings you already had. Similarly, if the product you’re selling already exists on Amazon, you can list an offer on the good. Your offer will allow you to sell your product using the information that Amazon provides for it.
3. Shipping Templates
Shipping templates let you create shipping settings across several products at once. You’ll create shipment templates in your seller account dashboard. For that, you’ll have to go to Manage Inventory to create and assign your products’ shipping templates.
While on your dashboard, you should adjust the shipping and handling time to what you can realistically handle. Also, you’ll need to put in your e-commerce return information.
4. Receive and Fulfill Orders
Once a customer has bought your product through Amazon, you’ll pick it up from your warehouse and pack it as necessary to remain safe during shipping. While fulfilling orders, you should keep in mind that the packaging must meet Amazon’s requirements.
Furthermore, you’ll have to label your products before you ship them. You can print your own labels or buy them from Amazon.
5. Shipping
After packaging and making goods ready to hand over to your customer, the shipping process comes in.
In shipping, you will transport your goods to your customers by yourself or with the help of third-party logistics. Whichever transport you pick needs to have tracking enabled.
Particularly, your shipping option should be part of Amazon’s network of carriers. And as you organize your shipping, ensure you meet Amazon’s estimated delivery time.
6. Customer Service and Returns
Finally, you’ll have to deal with returns and customer reviews. If you get many returns on a particular product, you should find the reason behind it and work on it.
Plus, read the customer feedback regularly and respond promptly to them to avoid negative feedback. In fact, businesses that respond to their clients within a day receive 50% less negative feedback than those that take longer.
Moreover, you can request reviews from your Seller Central. You’ll find the “Request Review” button in the buyer order near the Refund button.
The Advantages of FBM
Fulfillment by Merchant has these advantages:
- Controlled Process: Fulfillment by Merchant gives you full supply chain control.
- Consistent terms and conditions: Amazon fulfillment by merchant is less likely to change terms and conditions abruptly compared to FBA. And so, you’re likely to avoid major losses because of Amazon’s requirements changes.
- Flexible shipping rate: You can set your own transport rates.
- Better inventory management: Fulfillment by Merchant allows you to manage both your off-line and online inventory together.
- Branding: You can brand your packaging when you sell through Fulfillment by Merchant, unlike with FBA.
- Customer Service: You can offer outstanding customer service. After all, it’s well-known that it is difficult to get human help from Amazon’s customer service.
The Disadvantages of FBM
Fulfillment by Merchant has these drawbacks:
- Poor learning: Fulfillment by Merchant has a steep learning curve if you don’t already have an effective logistic system.
- No access to Amazon Prime: Vendors that use Fulfillment by Merchant don’t have access to Amazon Prime.
- Variation in Sales: If you’re switching from FBA to FBM, your sales won’t necessarily stay the same. In fact, your sales might drop.
- Warehousing costs: Your business will have to focus on labor and capital to store your inventory and fulfill orders.
Conclusion
Now you know what is fbm Amazon – a selling method whereby your business lists goods and receives orders through Amazon. In this fulfillment method, you’ll handle the packaging of your goods, fulfillment, shipping, and customer service.
To get started with FBM, you need to have a seller account, manage your inventory, list your goods on your Seller Central, and finally, arrange a traceable shipping resource.
If you want full control of your supply chain and brand your shipping on Amazon, we recommend the FBM method for your e-commerce business. However, you should keep in mind that FBM requires an efficient logistic setup.
