Currently, there are 9.7 million people who actively run their business on Amazon. And of course, each of them has their own way of operation and secrets of success. If you really want to build a profitable business on Amazon, one of the most important decisions that you have to make is to choose the right fulfilment method. That’s because the safety of your operation on Amazon directly depends on a carefully chosen fulfilment method. If you run your business under the right method, you protect your business from receiving an Amazon suspension, which is the worst thing that could happen to an Amazon seller. By the way, if you found out that Amazon suspended your seller account, you can reach out to reinstatement services which can help you return your selling privileges in the shortest possible time. But, let’s return to our main topic, since we are going to bring to your attention the main differences that you should be aware of regarding FBA or FBM fulfilment methods, so you can easily choose the best one which suits you more.
Before, jumping into our main topic, let’s just go through some vital metrics:
- 57% of Amazon sellers use FBA as their fulfilment method.
- 9% of the sellers use FBM and prefer to fulfil products by themselves.
- And 34% of Amazon sellers combine these two fulfilment methods by taking advantage of both of them.
FBA
Fulfilment by Amazon (FBA) provides its users with tons of opportunities for building a successful business on Amazon. The entire process of running your business through FBA is pretty simple:
- You find reliable suppliers and source products from them.
- Send your inventory to Amazon.
- And Amazon takes care of the rest.
By using this method, you can be sure that important aspects such as your products’ storing, packaging, and fulfilment will be handled at the most professional level.
Moreover, you should be confident that your customer will receive high-quality customer service, since it is a general rule of thumb that Amazon is obsessed with its customers and handles any issues in their favour.
FBM
Fulfilment by Merchant (FBA) is another fulfilment method that you can choose when you operate on Amazon. However, if you really want to build a successful business on Amazon, then you should be extra careful with this method since it has lots of hidden loopholes which may lead to Amazon suspensions.The main reason is that by running your business under this fulfilment method, you should prepare yourself for taking care of all the processes within your operation including packaging, shipping, and refunds. Moreover, you have to rent a warehouse, where you are going to store your goods.
Which One To Choose?
If you do not want to go wrong with the chosen method, then first, you have to weigh up all the pros and cons and choose the best one which suits you more. First of all, you have to consider the criteria regarding your product, such as the size, logistics and, of course, fees that Amazon will charge for storing your goods in its warehouse. Based on these factors, you can make the right decision and choose the right method for your unique business.
Now that you know the main differences between these two fulfillment methods, it’s time to get the ball rolling! Good luck with your Amazon business!
