Amazon has shown to be one of the world largest and more complex marketplaces in the world utilising the phrase FBA. Amazon seller have to compete with millions of other sellers, while managing all the processes connected to selling and shipping.
Amazon offers two solutions: you can choose between FBA and FBM process. Your decision will impact all your online business.
A lot of new Amazon business owners are working out what is the difference between Fulfilment by Amazon ‘FBA’ and Fulfilment by Merchant ‘FBM’
The main difference is this,
FBA is where Amazon will fulfil the orders that come from Amazon by Amazon staff, and
In four words, FBA works this way: You sell, Amazon ships.
In detail, Fulfillment by Amazon is developed in this way:
- The seller directly sends his products to Amazon fulfillment center, products are registered and stored
- Amazon manages the inventory and the seller can monitor the movements of his products using a tracking number
- When a buyer makes an order, on Amazon.com or from other sources, the product stored in Amazon inventory is packed
- Amazon then ships the product using the way preferred by the customer, and provides the tracking info
- In FBA the and Amazon staff manages customer care and returns
FBM is where Amazon sales will require the merchant to fulfil their orders and send it to the customer themselves.
Some sellers prefer to mantain the control over all the selling process.
Without paying FBA fees they can increase their profit margins. Usually, FBM sellers obtain higher profit margins than FBA sellers.
Moreover, being a FBM doesn’t exclude you from entering to Prime products. It will just be more difficult: the sellers will have to avoid late deliveries, provide perfect customer care, immediate confirmation and shipping of the order and have very good feedbacks. For FBM sellers it is very important to reduce shipping costs: while Amazon manages very high volumes obtaining low prices for the fast delivery, FBM will have to compare prices and services of the different couriers, in order to get the best service at the lowest price.
Until Amazon FBA is up and running all products sold on Amazon Australia will be FBM or Merchant Fulfilled.
Also for one reason or another, there are some products that cannot be fulfilled by Amazon (FBA) services. When you need third-party fulfilment, for any reason, we are here for you. Our fully integrated order handling system and cutting edge third-party logistics system (3PL) integrates with Amazon’s application programming interface (API) and can download your orders directly into our systems for fast and efficient delivery to your clients.
Alternatively, you can also integrate your Amazon account into KeepSpace and fulfill your orders as soon as possible. If you need FBM services we can accept your order and ship for you throughout Australia.
FBM sellers don’t have a “free pass” to Prime: they will have to work a lot to get it, and it is not simple at all.
Nothing to see with the Buy Box: the path to access it is even more difficult. We have to succeed in managing customer complaints and delivering without any delay to have the possibility to win the most desired buy box across the internet.