Fulfillment by Amazon (FBA) has always felt like the default pathway for many sellers on Amazon. However, Amazon FBM fulfillment is another option. Instead of relying on Amazon for warehousing and logistics, sellers handle storage, packing, shipping, and returns on their own.
Even though Fulfillment by Amazon gets the highlights most of the time, Amazon FBM fulfillment is still an appealing choice. It is a great choice for sellers who want to optimize their operations and stay on top of every step once the product leaves their warehouse.
How Amazon FBM Fulfillment Works
Amazon FBM fulfillment begins when you list your products on Amazon and select “fulfillment by merchant” as the fulfillment method. You will get a notification once customers place their orders. The next step involves you picking the order, packaging it, and shipping it to the customer using your preferred courier service.
After sending the order, you must upload tracking information to Amazon. You must also respond to customers’ queries related to returns. While it may seem a more labor-intensive and hands-on process, Amazon FBM allows sellers to optimize each step.
What Are the Key Benefits of Amazon FBM Fulfillment?
You can probably guess the number one question most people often ask: “Why not use Fulfillment by Amazon?” It seems like less work, and you don’t have to worry about renting a storage unit or handling returns. While these can be true, Amazon FBM fulfillment allows sellers to manage and oversee all operations.
Sellers decide how products are packaged, which helps create better customer experiences. In addition, you can choose which courier service to use and how the inventory is managed and maintained.
The other benefit is that fulfilling products using FBM can reduce overhead costs, especially if your store sells slow-moving products. You will save a lot by cutting down on the high FBA costs that come with storing your products in an Amazon warehouse.
FBM fulfillment also opens the door for vendors to partner with 3PL companies, such as Packageman, for multichannel support. This flexibility makes FBM an appealing option for brands focused on efficiency and customizing customer experiences.
Challenges and Limitations of Amazon FBM Fulfillment
Using Amazon FBM fulfillment also comes with its fair share of limitations, which you should assess beforehand. The first challenge has to do with keeping up with Amazon’s strict policies on timely delivery and customer service responsiveness.
Managing delivery times can be a challenge during peak shopping seasons. This can be an issue, especially if you are running everything in-house.
The other thing you must worry about is customer service. Taking too long to respond to complaints and returns can harm your brand. In most cases, it can lead to negative reviews and a drop in your rating.
Summing up
Amazon FBM fulfillment has its fair share of pros and cons. However, it can be profitable if done in the right way with working systems in place. Partnering with a 3PL company can reduce the workload and help you focus more on handling customer communication and customizing customer experience.
